Superannuation industry executives say superannuation is not a long-term solution for aged care funding, ahead of a meeting tomorrow with super industry representatives and the Aged Care Taskforce in Melbourne.
“Super can’t be the basis of a sustainable funding model – it can’t be a fix-all for aged-care funding,” Aware Super Chief Risk Officer Jane Couchman told The Australian Financial Review.
Australian Association of Superannuation Funds Deputy Chief Executive Officer Glen McCrea added, “Many current retirees do not have a large amount of superannuation from which to fund increased aged care costs."
Ringfencing super to pay for aged care costs would “create unnecessary complexity and cost,” he said.
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”. Deliberations still include as a primary focus increased consumer contributions – a reform that DCM Group has been advocating for two years as ‘Plan B’.
Last week we revealed that the Taskforce’s interim recommendations, which are said to be based on changes that can be actioned without new legislation or further time-consuming reviews, won’t be publicly released.
The SOURCE: Using super to pay for aged care would require legislative changes, which suggests it’s unlikely to be included in the Taskforce’s interim recommendations.
