Surging aged care prices create unexpected living costs—find out why!
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As we navigate the golden years of our lives, the comfort and care we receive should be the highest priority.
However, the cost of such care is set to rise sharply, leaving many Australian seniors and their families bracing for impact.
The federal government is about to reveal a new plan to see older Australians dig deeper into their pockets to cover aged care costs.
The upcoming changes are part of a new Aged Care Act, one of the key recommendations from the 2021 Royal Commission into the sector.
While the commission suggested that a new aged care levy funded by taxpayers could help cover costs, the government has decided to shift more financial responsibility onto the users of these services instead.
This decision comes after extensive negotiations with the Coalition, which have been described as 'detailed' and 'constructive.'
Both parties agree that the financial sustainability of aged care services is a pressing issue, especially with the baby boomer generation now reaching the age where they require more care and the smaller generations that follow them unable to shoulder the tax burden.
Aged Care Minister Anika Wells is spearheading the reform to address the financial sustainability of residential and in-home care.
The government's task force has argued that it needs to be more fair and sustainable for taxpayers to continue footing such a large portion of the bill.
As a result, the task force has proposed a system where users contribute more to their care.
This could mean that while the government would still cover residential care costs, users would pay more for accommodation, food, and other services.
High-means residents might see an additional fee, and the option to pay for accommodation via a lump-sum deposit could be phased out in favour of a daily fee.
In-home care could shift to a fee-for-service model where fees are not compulsory, and most users pay nothing.
Under this model, the government would cover care costs, but users would be responsible for other associated costs.
The proposed fee structure is one of the sweeping changes under the new Aged Care Act.
This act aims to replace the current complex and overlapping laws with a single, rights-based law that governs eligibility, funding, quality, and safety regulation.
However, the simplification process has been challenging.
The sector has expressed concerns about the new law's enforceability, fearing that vague standards could lead to unmet expectations, especially in regional areas with limited care options.
The government has a tight timeline to address these concerns and implement the new act by July next year.
In other news, wealthy seniors in Australia could face higher costs for aged care following recommendations from a government task force.
This change is intended to lessen the burden on taxpayers as aged care expenses are projected to rise substantially over the next ten years. You can read more about it here.
How do you feel about the proposed increase in user contributions for aged care? What steps are you taking to prepare for these changes? Your insights could help fellow members as we all work together to face these challenges head-on.
However, the cost of such care is set to rise sharply, leaving many Australian seniors and their families bracing for impact.
The federal government is about to reveal a new plan to see older Australians dig deeper into their pockets to cover aged care costs.
The upcoming changes are part of a new Aged Care Act, one of the key recommendations from the 2021 Royal Commission into the sector.
While the commission suggested that a new aged care levy funded by taxpayers could help cover costs, the government has decided to shift more financial responsibility onto the users of these services instead.
Australia unveiled new aged care fee reforms after talks with the Coalition. Credit: Shutterstock
This decision comes after extensive negotiations with the Coalition, which have been described as 'detailed' and 'constructive.'
Both parties agree that the financial sustainability of aged care services is a pressing issue, especially with the baby boomer generation now reaching the age where they require more care and the smaller generations that follow them unable to shoulder the tax burden.
Aged Care Minister Anika Wells is spearheading the reform to address the financial sustainability of residential and in-home care.
The government's task force has argued that it needs to be more fair and sustainable for taxpayers to continue footing such a large portion of the bill.
As a result, the task force has proposed a system where users contribute more to their care.
This could mean that while the government would still cover residential care costs, users would pay more for accommodation, food, and other services.
High-means residents might see an additional fee, and the option to pay for accommodation via a lump-sum deposit could be phased out in favour of a daily fee.
In-home care could shift to a fee-for-service model where fees are not compulsory, and most users pay nothing.
Under this model, the government would cover care costs, but users would be responsible for other associated costs.
The proposed fee structure is one of the sweeping changes under the new Aged Care Act.
This act aims to replace the current complex and overlapping laws with a single, rights-based law that governs eligibility, funding, quality, and safety regulation.
However, the simplification process has been challenging.
The sector has expressed concerns about the new law's enforceability, fearing that vague standards could lead to unmet expectations, especially in regional areas with limited care options.
The government has a tight timeline to address these concerns and implement the new act by July next year.
In other news, wealthy seniors in Australia could face higher costs for aged care following recommendations from a government task force.
This change is intended to lessen the burden on taxpayers as aged care expenses are projected to rise substantially over the next ten years. You can read more about it here.
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