The aged care sector is grappling with intensifying challenges as the population grows older. It's estimated that aged care costs will rise by $29 billion over the next decade alone.

But here’s the big question: who will foot the bill for improving standards of care? A federal government task force has recommended that wealthier seniors start contributing more.

This proposal suggests a shift in financial responsibility from the general taxpayer to those more financially capable.

The government currently allocates over $30 billion annually to assist senior citizens with aged care expenses. However, with the Parliamentary Budget Office anticipating a sharp rise in these costs, the task force recommended revising the means-testing for aged care services.

A federal government task force has recommended that wealthier seniors should contribute more to the aged care sector. Source: Shutterstock

The aim is to require wealthier individuals to shoulder a larger portion of the expenses, thus easing the fiscal strain on government resources.

The task force's report, expected to be published by the end of January, will likely recommend that consumers increase their contributions to maintain the high quality of services without overburdening taxpayers.

The federal government is expected to respond to these recommendations later in the year, possibly during the May budget.

One of the significant changes proposed is an increase in daily living fees for residential care residents, currently set at $61 a day. This could be lifted for those with greater wealth.

Ninety-six per cent of the total cost of residential aged care is covered by taxpayers, with only 4 per cent paid in consumer contributions. This is mostly due to existing means tests capping payments at $33,000 annually or $78,500 over a lifetime.

The task force also suggested changing how the family home contributes to means tests. The current system requires the home's maximum value to be below $198,000. This could also be set to change under the new recommendations.

Aged Care Minister Anika Wells had already hinted at such changes during a National Press Club speech in June, stating that aged care contributions would need to increase to keep up with quality improvements.

'You have to say that if we’re not prepared to accept that cinder-block, linoleum-floor, four-bedroom any more, then we need to work out how we’re going to pay for it,' she said.

‘Plenty of people have said: “I am prepared to pay for an innovative, excellent model of care—I just can’t find it”,’ Ms Wells added.

Ms Wells is expected to give a formal response to the task force report when it is published in a few weeks.

There were also intense discussions earlier on ways to improve aged care, particularly with the idea of imposing a levy on younger Australians.

Last year, Opposition health spokeswoman Anne Ruston said that the Coalition would consider ‘any sensible policy solutions put forward by the Aged Care Taskforce and the government in good faith’.

She stated: ‘Ensuring the sustainability of Australia’s aged-care sector is absolutely critical to ensuring future generations have access to the care they need and the care they deserve as they age.’

You can watch Sky News Australia’s report here:

​

The proposed changes have sparked mixed reactions from social media users. One commenter wrote: ‘Fair enough, we've done well. Didn't we say we were [saving] for retirement and now it's time for us to spend it and not be a burden?’

‘I have to agree. Aged care is very important but a lot of people are able to pay a little more to maintain the structure of the system,’ another said.

While another commented: ‘I thought having worked, paid taxes, raised tax paying children and generally making the country better was why we looked after elderly people. I must be wrong.’

‘If the national budget will not support the aged who have maintained the budget funding all their lives, then maybe everyone should stop paying into the national finances and fend for themselves,’ a fourth social media user suggested.

The aged care sector in Australia is facing numerous challenges, including a rapidly ageing population, increasing costs, and high expectations for quality care. The proposed changes are part of a broader effort to ensure the sustainability of the sector.

However, these changes also raise important questions about balancing individual and government responsibility for funding aged care. As the debate continues, it's clear that the future of aged care will be a key issue for both policymakers and the public.

Key Takeaways

• Wealthy seniors in Australia might be required to pay more for aged care due to government task force advice.
  
• The move aims to reduce taxpayer contributions to the country's aged care costs, which are expected to climb significantly over the next decade.
  
• The task force is set to recommend changes to means-testing, potentially increasing daily living fees and altering how the family home is valued in such tests.
  
• The federal government is expected to respond to the recommendations, which also suggest an increased consumer contribution later in the year, likely during the May budget.
  

What are your thoughts on these proposed changes, members? Do you believe wealthier individuals should contribute more to their aged care costs? Share your thoughts in the comments below.

 

[Lizzie1149]

I think you are forgetting that people died a lot younger, and daughters were stay at home wives which meant they could care for elderly parents. Many pensioners still have parents who need care these days - I call it the sandwich generation - taking care of parents whilst minding grandchildren

would be interested to see the figures. Many who went through the war died quite old. Still a few living now who are over 100. Depression took it's toll but in general people lived at home and coped will until death. I really thing we have been conned into believing that living in retirement and aged care places is a good thing but I've seen some of it and I'm not interested if I can keep away from it I'll be happy. Even if they did die a bit younger there wasn't much heart disease, cancer etc back then. Bit of age onset type 2 diabetes. But they ate fresh from the garden and did more quiet regular exercise. We don't have to got to the gym but we as a generation have gotten lazy. Eating junk, not getting outside in the sunshine and fresh air. Yes women work now but that has been such a sad push. Reality is we should not have to be forced to work and earn two incomes to survive. Many don't want to look after elderly or kids

 

[Gaena]

This is similar to anything that the Albuneasy Govt touches. It becomes unmanageable ! They gave large salary increases, so, of course costs went up. Has the quality of service gone up ?
They have NO REAL FINANCIAL EXPERIENCE. MOST OF THEM HAVE NOT EVEN HAD A REAL JOB, LET ALONE RUN A BUSINESS ! Bryan.

What on earth have the Albanese Government amything to do with the the absolute mess that has been created in the Aged care sector. The LNP had been in government of this country for over 12 years before Labor under Albanese came back into power 2 years ago. Federal government shoulders most of the cost of aged care . so state governments that were Labor and not LNP cannot be blamed either. Think about what you are saying are you so loyal to the LNP that you cannot see where the blame lies. Come up with something constructive to help instead of just blaming the current government for everything that is wrong.

 

[Rob44]

We could save millions every year if the perks and lurks that all the pollies get had to be paid out of their own pockets like ours do. Education should be about co-existing in a moderate/friendly society with comfortable needs, not about the massive greed we see everywhere today. This crap about giving every child a ribbon for participating teaches them nothing about what is going to happen in their future life, they have to learn that you have to put in some effort to get what you want out of life and that not every one will be a superstar. Someone has to do the less important but absolutely critical jobs. Some one has to take out the garbage that we voted for.

Just as long as the Mayor of Melbourne City gets her $250 000pa Honorarium, the Deput yMayor gets his $127 000pa Honorarium and the Councillors get their $57 000pa Honorarium and the AFL gets its $750 000 000 tapayer paid AFL stadium on Honart's waterfront and each and every PM gets that $500 000 pa pension plus perks and the top tax rate is dropped to 33%...........The elderly have carried this country on their backs for the last 50 years, not the bludgers we have at all levels of government, from Federal down to City Councils to those CEOS and shareholders of our privatised Public Services. Now we "baby boomers" are being blamed for the housing shortage.

 

[Tarnia]

How much more do the elderly have to go without?
As it stands, residents in facilities are paying thousands per month for care that barely exist.
Many complaints on the Minister’s Anika Wells Facebook page and on Twitter/ X regarding mistreatment, neglect, abuse and meals you wouldn’t feed to your dog, however this minister either ignores the serious issues or buck passes. Making changes that’s almost impossible to police and giving pay rises does not stop the abuse and neglect.
Home care clients have had their Home Care Package’s Stripped to almost nothing, now Wells want the elderly to pay more for almost nothing?? BUT wait, this article claims facilities are unable to afford the upkeep, so why is the minister making it harder for the elderly to stay home safe, healthy and independent for longer?

The minister is so incompetent and has zero idea how to manage Aged Care.
All this minister is interested in is sport, praising herself on social media, sticking her nose into other portfolios and advertising her kids on social media.
Liberal did nothing to change Aged Care for the better but at least the elderly at home were safer, healthier and more independent. Residents in facilities, it will never change until real changes are made such as accountability and complaints are actioned!!

 

[Rob44]

What on earth have the Albanese Government amything to do with the the absolute mess that has been created in the Aged care sector. The LNP had been in government of this country for over 12 years before Labor under Albanese came back into power 2 years ago. Federal government shoulders most of the cost of aged care . so state governments that were Labor and not LNP cannot be blamed either. Think about what you are saying are you so loyal to the LNP that you cannot see where the blame lies. Come up with something constructive to help instead of just blaming the current government for everything that is wrong.

Albanese and the ALP are gutless wonders who are frightened of their own shadow. Can't they pass legislation for the public good without asking permission from the LNP and Dutton? Check the achievements of the British Labour Party in 1945-50; the NHS (which included home visits by doctors and mobile X-ray units), free university access if you passed the entrance exams even unto Oxford and Cambridge, free access to secondary education and technical colleges, 200 000 Council Houses built each year until Thatcher stopped that program in 1979, a nationalised railway system that delivered good, regular public transport and much else. That, after the disaster of the Great Depression and WW2, not to mention the social damage done during WW1. The ALP is a sorry sick joke and the LNP is pointless unless you want to rip-off your neighbour.

 

[Rob44]

does the pension not also come from taxpayer funds?

Yes; $26000pa (means-testd) for a single person. What's the official poverty level in Australia? Last time I read (some 8-9 years ago) about the local government Councillors in the 60 000-people "city" where I live they got $20 000pa as an Honorarium for simply sitting on their backsides at 12 Council meetings a year.

 

[Jest]

The aged care sector is grappling with intensifying challenges as the population grows older. It's estimated that aged care costs will rise by $29 billion over the next decade alone.

But here’s the big question: who will foot the bill for improving standards of care? A federal government task force has recommended that wealthier seniors start contributing more.

This proposal suggests a shift in financial responsibility from the general taxpayer to those more financially capable.

The government currently allocates over $30 billion annually to assist senior citizens with aged care expenses. However, with the Parliamentary Budget Office anticipating a sharp rise in these costs, the task force recommended revising the means-testing for aged care services.

View attachment 38611

A federal government task force has recommended that wealthier seniors should contribute more to the aged care sector. Source: Shutterstock

The aim is to require wealthier individuals to shoulder a larger portion of the expenses, thus easing the fiscal strain on government resources.

The task force's report, expected to be published by the end of January, will likely recommend that consumers increase their contributions to maintain the high quality of services without overburdening taxpayers.

The federal government is expected to respond to these recommendations later in the year, possibly during the May budget.

One of the significant changes proposed is an increase in daily living fees for residential care residents, currently set at $61 a day. This could be lifted for those with greater wealth.

Ninety-six per cent of the total cost of residential aged care is covered by taxpayers, with only 4 per cent paid in consumer contributions. This is mostly due to existing means tests capping payments at $33,000 annually or $78,500 over a lifetime.

The task force also suggested changing how the family home contributes to means tests. The current system requires the home's maximum value to be below $198,000. This could also be set to change under the new recommendations.

Aged Care Minister Anika Wells had already hinted at such changes during a National Press Club speech in June, stating that aged care contributions would need to increase to keep up with quality improvements.

'You have to say that if we’re not prepared to accept that cinder-block, linoleum-floor, four-bedroom any more, then we need to work out how we’re going to pay for it,' she said.

‘Plenty of people have said: “I am prepared to pay for an innovative, excellent model of care—I just can’t find it”,’ Ms Wells added.

Ms Wells is expected to give a formal response to the task force report when it is published in a few weeks.

There were also intense discussions earlier on ways to improve aged care, particularly with the idea of imposing a levy on younger Australians.

Last year, Opposition health spokeswoman Anne Ruston said that the Coalition would consider ‘any sensible policy solutions put forward by the Aged Care Taskforce and the government in good faith’.

She stated: ‘Ensuring the sustainability of Australia’s aged-care sector is absolutely critical to ensuring future generations have access to the care they need and the care they deserve as they age.’

You can watch Sky News Australia’s report here:

​

The proposed changes have sparked mixed reactions from social media users. One commenter wrote: ‘Fair enough, we've done well. Didn't we say we were [saving] for retirement and now it's time for us to spend it and not be a burden?’

‘I have to agree. Aged care is very important but a lot of people are able to pay a little more to maintain the structure of the system,’ another said.

While another commented: ‘I thought having worked, paid taxes, raised tax paying children and generally making the country better was why we looked after elderly people. I must be wrong.’

‘If the national budget will not support the aged who have maintained the budget funding all their lives, then maybe everyone should stop paying into the national finances and fend for themselves,’ a fourth social media user suggested.

The aged care sector in Australia is facing numerous challenges, including a rapidly ageing population, increasing costs, and high expectations for quality care. The proposed changes are part of a broader effort to ensure the sustainability of the sector.

However, these changes also raise important questions about balancing individual and government responsibility for funding aged care. As the debate continues, it's clear that the future of aged care will be a key issue for both policymakers and the public.

Key Takeaways

• Wealthy seniors in Australia might be required to pay more for aged care due to government task force advice.
• The move aims to reduce taxpayer contributions to the country's aged care costs, which are expected to climb significantly over the next decade.
• The task force is set to recommend changes to means-testing, potentially increasing daily living fees and altering how the family home is valued in such tests.
• The federal government is expected to respond to the recommendations, which also suggest an increased consumer contribution later in the year, likely during the May budget.

What are your thoughts on these proposed changes, members? Do you believe wealthier individuals should contribute more to their aged care costs? Share your thoughts in the comments below.

i have been told by a ndis carer (Not mine i do not have one.) that there are very wealthy people getting free care and are not as bad health wise as I am. I do not qualify as I am 84 years old. Everything needs a good clean out and the whingers need to rethink.

 

[Tarnia]

Personally I think if aged people can live in their home for as long as they can with little outside assistance so be it, another way to live in granny flats with their family where space allows and again have assistance from government systems, that way the so called four bedroom house is out there for bigger family’s to purchase and live in or the government to purchase for homing such people. The media talk about aged people like they are a boil on their body that they would like to lance, and get rid of. It’s sad that these older people many baby boomers are the ones that built this country back up after the war, their seems to be a lot of selfishness out there, very sad

I agree, however there are many who are totally reliant on others such as family.
When the minister anika wells changed the Home Care Packages in January 2023, she has now made it very difficult for the elderly to be able to stay home longer. The changes she condescendingly told everyone she didn’t do and later in the year admitted she changed the HCP’s, this is not a minister or government that should be in charged of Aged Care.
Did you also know that facilities who out source their workers will bend over backwards to help their aged client right up until they realise the home does not belong to the elderly, once this is realised they become the most arrogant and won’t do anything to lift a finger.
This is just some of what’s going on in Aged Care that is hidden from the public.

 

[Tarnia]

i have been told by a ndis carer (Not mine i do not have one.) that there are very wealthy people getting free care and are not as bad health wise as I am. I do not qualify as I am 84 years old. Everything needs a good clean out and the whingers need to rethink.

Yes exactly this but no one is game enough to touch the NDIS as there are too many pigs in the troughs.
There needs to be a massive independent investigation into the NDIS and Aged Care/ HCP’s. The difference between care and essentials allowed/ not allowed between the NDIS and HCP’s is absolutely disgusting.

 

[Knell]

Personally I think if aged people can live in their home for as long as they can with little outside assistance so be it, another way to live in granny flats with their family where space allows and again have assistance from government systems, that way the so called four bedroom house is out there for bigger family’s to purchase and live in or the government to purchase for homing such people. The media talk about aged people like they are a boil on their body that they would like to lance, and get rid of. It’s sad that these older people many baby boomers are the ones that built this country back up after the war, their seems to be a lot of selfishness out there, very sad

The ones that fought 'the war' are the ones to take credit - baby boomers lived off this luxury. The war regenerated the economy. Funny how the Greatest Generation did the heavy lifting and a LOT less whinging entitlement!

 

[elaine41]

Probably just like shifting the deck chairs on the Titanic. We need a much better system but how about we start by stopping selling all the rubbish in the supermarkets that is making people sick and needing aged care. Our grand and great grand parents didn't need aged care and if they really did the family looked after them. Successive governments have given in the the medical and pharmaceutical industries and no we have a pandemic of sickness. And we don't have health care we have sick care. Most people have no idea that most modern illnesses are a direct result of what they put into their mouths for the most part. Cancers are raging, diabetes is hitting people at younger and younger ages and no one is batting an eye lid. Just, oh it's okay we have a pill for that or a treatment for that. No preventative medicine, just curative and it doesn't cure for the moNot

Probably just like shifting the deck chairs on the Titanic. We need a much better system but how about we start by stopping selling all the rubbish in the supermarkets that is making people sick and needing aged care. Our grand and great grand parents didn't need aged care and if they really did the family looked after them. Successive governments have given in the the medical and pharmaceutical industries and no we have a pandemic of sickness. And we don't have health care we have sick care. Most people have no idea that most modern illnesses are a direct result of what they put into their mouths for the most part. Cancers are raging, diabetes is hitting people at younger and younger ages and no one is batting an eye lid. Just, oh it's okay we have a pill for that or a treatment for that. No preventative medicine, just curative and it doesn't cure for the most part

Not all of us who reach old age are sick as well. I am an octogenarian with only one "sickness" - blood pressure too high so need meds for that. I have eaten food from the corner store, small grocery store & later the supermarkets without any ill effect so please do not put us all in that box.

We don't all have family to look after us either. I looked after both my parents until it became too difficult for me to do that on my own. That is a very demanding & draining task for someone to do long term. That's when I started to have health problems as the demands of caring for my mother drained all my energy. I also do not have family to care for me so what do you suggest should happen when I can no longer completely care for myself - euthanasia? I do not believe in that. God has given me this life & He, alone, will decide when I leave it.

Don't blame the elderly for the sicknesses of the younger generations. Type I diabetes is not caused by the food in the supermarkets though I will concede that Type II might, just might, be caused by the food we eat. Many cancers are in those under the age of needing aged care so don't blame us for that cost either.

I have only just started to receive some help in the way of vacuuming & floor washing. I need this because of injuries I received while working as a Psychiatric Nurse for many years & these have now come back to bite me. I did my share of really hard work for many years & feel I am now entitled to have some care without the younger generations bitching about how it will be paid for.

 

[Leenie]

LNP VOTER BY ANY CHANCE. offer something constructive rather than a political rant.

We all have the right to have an opinion on the forum .

 

[Leenie]

The ones that fought 'the war' are the ones to take credit - baby boomers lived off this luxury. The war regenerated the economy. Funny how the Greatest Generation did the heavy lifting and a LOT less whinging entitlement!

I am about to turn 88 and live by myself without any help being independent, I believe we paid our taxes to cover the old age pension, only for politicians to raid the savings, it was too good for them not to grab. Now there is nothing left in the kitty. Maybe someone will prove me wrong , I await the outcome .

 

[Leenie]

What on earth have the Albanese Government amything to do with the the absolute mess that has been created in the Aged care sector. The LNP had been in government of this country for over 12 years before Labor under Albanese came back into power 2 years ago. Federal government shoulders most of the cost of aged care . so state governments that were Labor and not LNP cannot be blamed either. Think about what you are saying are you so loyal to the LNP that you cannot see where the blame lies. Come up with something constructive to help instead of just blaming the current government for everything that is wrong.

Maybe someone can explain why the current fed gov has put up medications , I paid almost double for a couple of scripts on Wednesday and on last nights news chemists were asking the gov to put them back to the price before they put it up saying people cannot afford the increase.

 

[Macarj]

So those who saved over their life now will have to support the Government I always thought I would be a self funded retiree the Government took so much tax off me when I drew money out of super I am now on a pension

 

[Tarnia]

We all have the right to have an opinion on the forum .

We all have the right to have an opinion on the forum .

Trina G, I’ve been an ALP voter all my life. I am horrified what’s going on with Aged “Care”. The rudeness, arrogance, condescending, lies and manipulation from anika wells is just disgusting! She is the most incompetent soulless creature in government and all backed up by her minions.
The only ones gaining from this things inhumane changes are providers and businesses.

 

[Knell]

would be interested to see the figures. Many who went through the war died quite old. Still a few living now who are over 100. Depression took it's toll but in general people lived at home and coped will until death. I really thing we have been conned into believing that living in retirement and aged care places is a good thing but I've seen some of it and I'm not interested if I can keep away from it I'll be happy. Even if they did die a bit younger there wasn't much heart disease, cancer etc back then. Bit of age onset type 2 diabetes. But they ate fresh from the garden and did more quiet regular exercise. We don't have to got to the gym but we as a generation have gotten lazy. Eating junk, not getting outside in the sunshine and fresh air. Yes women work now but that has been such a sad push. Reality is we should not have to be forced to work and earn two incomes to survive. Many don't want to look after elderly or kids

Child care seems to be pretty well subsidised these days - no reason for grandparents to mind the children. Instead of complaining, many could look after their elderly parents, but they don't. Plenty of heart disease and cancer back then!

 

[Macarj]

I think you are forgetting that people died a lot younger, and daughters were stay at home wives which meant they could care for elderly parents. Many pensioners still have parents who need care these days - I call it the sandwich generation - taking care of parents whilst minding grandchildren

Exactly right My wife looks after her 93 year old mum with her sister 6 months each and we have 6 grand kids which we watch often not complaining though love the the grand kids and the mother in law was a great person too just agreeing with your post

 

[Tarnia]

Maybe someone can explain why the current fed gov has put up medications , I paid almost double for a couple of scripts on Wednesday and on last nights news chemists were asking the gov to put them back to the price before they put it up saying people cannot afford the increase.

Gaena, it was wells who is in government for the ALP. Wells has created this bigger mess for not listening and ignoring facts with evidence.
Zoom meetings after Zoom meetings and no one is heard unless the person agrees with this incompetent fool wells.
Wells is too busy clapping herself on social media and sprouting about all the good work she has done, she’s done NOTHING!!

As for the LNP, they may have done nothing but at least they haven’t made it worse like the ALP.
Facilities are not changing under the new legislation, in fact abuse and neglect is still going on today.
At least HCP’s recipients were able to use their HCP as it was intended for.
Wells has made it easier for providers, and businesses to rip the HCP’s off even further and with providers now doing even less to make more money.
Wells is hell bent on destroying Aged Care ignoring anyone who goes against her agenda, deleting comments on social media that proves her wrong and eventually blocking people.
Profits before care is worse, it’s shameful

 

[Gsr]

Now as soon as it is legislated that the richer people can contribute more to their aged care just watch them run off to the lawyers or financial gurus and offload a much as they can to their kids, grandkids etc. there needs to be at least a ten year back dated timeframe that their assets are counted towards their aged care contribution. When my mother in law was in aged care 85% of her pension went towards her accommodation, food, care costs. She had 15% left to pay for medications, which ate up most of it. Family had to help out with all clothes, haircuts, specialised medical costs, dental, personal care items, outings etc. Clients who don’t have families to help have to do without a lot of these extras, if they are lucky there will be clothes and new personal items left there by families of deceased clients they can have. When mother in law passed away we donated all her clothes that were still good, a good lot of personal care items, the haircuts we had paid for that weren’t used, we paid in advance for them for gifts for her, and a donation of $500 to be used for the clients with no family help to be spent on their needs and some outings for them. The facility kept us informed of what the money was used for and we were pleased that it was all used for the needs of several different disadvantaged clients.