Caring for Older Australians



At the instigation of Nick Sherry, the assistant Treasurer, an inquiry has been held to consider what reforms may be necessary to meet the many challenges of supporting Australia's ageing and diverse population.

"These key points were released with the Caring for Older Australians inquiry report on 8 August 2011.

Over one million older Australians receive aged care services. The range and quality of these services have improved over past decades, but more needs to be done. 

Future challenges include the increasing numbers and expectations of older people, a relative fall in the number of informal carers, and the need for more workers. By 2050, over 3.5 million Australians are expected to use aged care services each year.

The aged care system suffers key weaknesses. It is difficult to navigate. Services are limited, as is consumer choice. Quality is variable. Coverage of needs, pricing, subsidies and user co-contributions are inconsistent or inequitable. Workforce shortages are exacerbated by low wages and some workers have insufficient skills.

The Commission’s proposals address these weaknesses and challenges and aim to deliver higher quality care. The focus is on the wellbeing of older Australians — promoting their independence, giving them choice and retaining their community engagement. Under this integrated package of reforms, older Australians would:

• be able to contact a simplified ‘gateway’ for: easily understood information; an assessment of their care needs and their financial capacity to contribute to the cost of their care; an entitlement to approved aged care services; and for care coordination — all in their region receive aged care services that address their individual needs, with an emphasis on reablement where feasible
• choose whether to receive care at home, and choose their approved provider
• contribute, in part, to their costs of care (with a maximum lifetime limit) and meet their accommodation and living expenses (with safety nets for those of limited means)
• have access to a government-sponsored line of credit (the Australian Aged Care Home Credit scheme), to help meet their care and accommodation expenses without having to sell their home. A person’s spouse, or other ‘protected person’ would be able to continue living in that home when an older person moved into residential care
• choose to pay either a periodic charge or a bond for residential care accommodation
• if they wish to sell their home, retain their Age Pension by investing the sale proceeds in an Australian Age Pensioners Savings Account
• have direct access to low intensity community support services
• be able to choose whether to purchase additional services and higher quality accommodation.

Limits on the number of residential places and care packages would be phased out, while distinctions between residential low and high care and between ordinary and extra service status would be removed.

Safety and quality standards would be retained. An Australian Aged Care Commission would be responsible for quality and accreditation; and would transparently recommend efficient prices to the Government"

The entire report can be found at http://www.pc.gov.au/

Productivity Commission 2011, Caring for Older Australians: Overview, Report No. 53, Final Inquiry Report, Canberra

Kerrianne Hebinger;
Financial Planning Essentials
fpe@finplans.com.au

w: http://www.finplans.com.au/