Consultations on Taskforce funding principles show support for Plan B

Government consultations with aged care stakeholders have revealed support for increasing consumer contributions towards the costs of aged care, acknowledging that the Government should continue to be the major funder of aged care and there must be a sufficient safety net. The Taskforce was announced in the May 2023 Federal Budget to review aged care funding “to ensure that the aged care system is fair and equitable for all Australians”. In August 2023, the Government called for submissions on the Taskforce’s draft aged care funding principles. The Government received 180 submissions from a wide range of stakeholders including older people, carers, health professionals, providers, peak organisations, and financial services providers. Through the submissions, the Government learnt there was general support for the principles. The main themes identified in the submissions include:

• The aged care system needs to modernise and be more sustainable.
• Fairness means everyone who needs care gets the appropriate standard of care, regardless of their financial means or where they live.
• Quality and appropriate care means individualised and person-centered care that is culturally appropriate, not a one-size-fits all approach.
• Aged care programs and funding arrangements are too complex and difficult to understand.
• Government should continue to be a major funder of aged care and participant contributions are needed with a sufficient safety net.
• Government has a role in directly funding capital infrastructure for aged care in rural and remote areas.
• The aged care funding model should promote innovation.
• Providers must earn sufficient income to be able to pay competitive wages that will attract and retain workers.

Feedback from the submissions will flow through to the Taskforce’s recommendations package which will be presented to the Government in December 2023.

The Taskforce’s interim advice has been provided to Government but will not be made public.