Major Industry Shake-up: Wealthy Baby Boomers Set to Pay More

January 4, 2024 10:39 am in by

The federal government task force has advised that baby boomers who can afford it should pay more for aged care.

According to the Sydney Morning Herald, the task force has recommended that Aged Care Minister Anika Wells change the means-testing for aged care services to require wealthier Australians to contribute more out of their own pocket.

Currently, taxpayers cover over $30bn to support elderly Australians with the cost of aged care. This is projected to increase by $29bn over the next decade.

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The daily living fees for individuals in residential care, currently set at $61 a day, may also be raised for those with higher wealth.

Currently, taxpayers cover 96% of the total cost of residential aged care, with consumer contributions accounting for only 4%.

The task force is expected to publish a report before the end of January, recommending increased consumer contributions to ease the burden on taxpayers while maintaining service quality.

The government is expected to respond to these recommendations later in the year, possibly during the May budget.

Changes may include lifting daily living fees for those with greater wealth and revising means tests for the family home.

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Aged Care Minister Anika Wells previously indicated the need to increase aged care contributions to improve the quality of care.

The official response from Ms Wells is anticipated when the task force report is published.

Opposition health spokeswoman Anne Ruston stated that the Coalition would consider sensible policy solutions proposed by the task force and the government to ensure the sustainability of Australia’s aged care sector.


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