Funding Aged Care into the future
Nicole Sutton, Senior Lecturer in Accounting, University of Technology Sydney.
Republished from The Conversation.com/au under Creative Commons agreement
The number of Australians aged over 85 is set to triple over the next 40 years. The government is currently looking at better ways to fund our under resourced Aged care System. One solution is a Medicare style system, paid by current tax payers to fund their future aged care costs.
This article by Nicole Sutton argues that such as system is flawed and inequitable, I tend to agree. We currently have a system that favours the very poor (rightfully) and the wealthy (perhaps less rightfully) though favourable treatment of that bastion of Aussie wealth, the family home. A system that allows those with sufficient other assets to protect the home as an inheritable tax free asset whilst in some cases, paying less for aged care and receiving more age pension than those less well off.
As a society we are demanding (rightfully) far better quality aged care than that delivered to our Grandparents, yet nobody wants to pay for it! We only have to look to Japan for the economic problems that can beset an ageing society, now is the time to plan to avoid them.