Labor’s changes to Australia’s aged care system risk squeezing out elderly people with limited financial means, an industry leader has warned, as advocates call for action to strengthen the reforms. Source: Guardian Australia.
Tracey Burton, chief executive of Uniting NSW.ACT, will use a speech on the future of care for elderly people today to argue that equitable access for poorer Australians remains an unmet promise of changes passed by parliament last year.
Following a royal commission and a taskforce report to the federal Government, Labor introduced new rules requiring wealthier people to pay more for their care and boosting access to support services for people who choose to stay in their own home.
Residents who can afford to pay for their own care do so using a payment known as a refundable accommodation deposit (RAD). The average RAD is $470,000, with the lump sum refunded to family members when a resident dies.
Elderly people whose care is paid for by the Government rely on a supported accommodation supplement, worth $70 per day.
Changes from the new laws were due to come into force from July 1, but were delayed until November over concerns about implementation capacity.
Ms Burton said the significant difference in value acts as a strong disincentive for homes to accept supported residents.
Ms Burton wants the Government to move more quickly than a planned review of the supplement, due to be completed by mid-2026. She will propose it be raised, or tied to mandated equivalent rate to the RAD.
The Minister for Aged Care, Sam Rae, said Labor was determined to make sure the accommodation supplement provided “appropriate incentives so that people who need it most can access care, even if they aren’t well off”.
FULL STORY
Labor’s aged care reforms risk squeezing out poorer people, industry boss warns (By Tom McIlroy, Guardian Australia)
