Sydney aged care advice since 1998. Servicing Sutherland Shire, North Sydney, Eastern Suburbs, South Coast, NSW North Coast, Byron Bay, Port Macquarie, Forster.

Key financial recommendations from the Royal Commission

24 Mar 2021
The Final Report from the Royal Commission into Aged Care containes 148 recommendations .

The Commonwealth Government needs to respond to these recommendations with an Action plan by the 31st May 2021
Recommendations include:

  • Both Commissioners agree that a levy (eg. 1% of taxable income) should be placed on the Australian Tax Payer (similar to how the Medicare Levy works) with the fund to be exclusively directed towards the aged care sector.
  • From 1/7/2024, the level of funding to remain at home will be the equivalent of what is available at a residential aged care service.
  • Care should be based on need, not rationing – ie. The uncapping of supply. To this point, by 31/12/2021, the entire home care package wait list to be cleared at the level the person was approved for. From 1/1/2022 the longest someone can wait for their package to be allocated is one month from the date of assessment.

Whilst these are all welcome changes it might be a bit ambitious to beleieve that waiting lists can be reduced from over 12 months in some instances to 30 days in just 6 months.
There are also some significant financial changes amongst the recommendations that will have significant impacts on both consumers and Aged care Providers. 
Key amongst these are:

  • Both Commissioners recommend the phasing out of Refundable Accommodation Deposits (from 1/7/2025), but have disagreed as to how the RAD will be replaced.
  • No later than 1/7/2021, increase to the basic daily care fee by $10 per resident per day.
  • If an individual is in receipt of an income support payment (eg. age/service pension), the means tested amount is zero.
  • The lifetime caps on the means tested contributions should be removed.

If implemented, these changes would be the biggest change to the Residential Aged caresystem since July 2014