The COTA Chief Executive says the winner of May’s Federal election needs to be talking to the Opposition about establishing an equitable co-contribution system for aged care at the start of their term – before the peak of the Baby Boomers need services.
“Work has been done within Government on what increased co-contributions would look like, but there hasn’t been a political window for that given the lack of recommendations from the Royal Commission and the risk adverse nature of both our major political parties,” he told SATURDAY.
“Whoever wins the coming election should be talking in the first months of their term to the other side and us seriously about a co-contribution scheme.
“We have always argued that that has to be equitable across all forms of care. So, you don’t have different means testing arrangements in different parts of the care system. Obviously it has to be fair and affordable to people, but also it has to be simple.”
Such a system would need to be compulsory and apply to all Australians on a means tested basis, Ian adds.
“The simplest way is saying to people, ‘This is the gross cost of the care that you need, and this is your means testing and Government will be paying $7 or $8 in every $10, or if you don’t have any resources, $9.50 in every $10.”
Any co-contribution scheme should also offer older Australians using their resources to pay for aged care a range of payment options – including the opportunity to dip into the value of the family home.
“If you are sitting in your house and you need support and care in the house, but you can’t afford it, this is absurd that you can’t get it – you should be able to draw down on the value you have in your house to provide yourself with support and care to stay there,” stated Ian.
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