Treasurer Josh Frydenberg says growing the economy is the best way to fund a multibillion-dollar overhaul of Australia’s broken aged care sector

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Treasurer Josh Frydenberg said the Morrison Government’s platform of delivering lower taxes meant “growing the economy” would serve the aged care sector more than the proposed 1% tax levy.

Mr Frydenberg was measured in his response to the Royal Commission’s proposed tax levy but said the Australian public could expect to see the Federal Government remain “consistent” in its push to deliver lower taxes.

The Treasurer reassured the sector the Government was still focused on addressing the Commission’s recommendations, the Australian Financial Review reported.

“It is patently obvious that there is going to be more spending from our government on aged care,” Mr Frydenberg said.

The $1 tax levy would cost the median salary earner around $610, injecting $7.85 billion into the aged care sector every year.

Meanwhile a counter proposal from the Health Workers Union has suggested a 0.5% levy, which would equate to $5 billion a year.

In the wake of the Royal Commission’s report, the Morrison Government committed an initial injection of $452 million into the aged care sector.

In 2017 the Federal Government proposed a 2% to 2.5% rise to the Medicare levy as part of the NDIS but it failed to make it through Parliament.

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