Release of Productivity Commission final report - Caring for older Australians

15 August 2011

The Federal Government released the Productivity Commission's report Caring for Older Australians on 8 August. Associate Stuart Lowe reports that the investigation into the aged care system was extensive and the recommendations will affect consumers, residents, providers, developers and financiers.

Background 

In undertaking the inquiry, the Commission developed options for further structural reform of the aged care system to facilitate future demands and challenges. 

In particular, the Commission: 

• examined the social, clinical and institutional aspects of aged care in Australia, building on the substantial base of existing reviews into this sector
• addressed the interests of special needs groups
• developed regulatory and funding options for residential and community aged care including the Home and Community Care program
• examined the future workforce requirements of the aged care sector
• recommended a path for transitioning from the current regulatory arrangements to a new system that ensures continuity of care and allows the sector time to adjust
• examined whether the regulation of retirement specific living options should be aligned more closely with the rest of the aged care sector
• assessed the fiscal implications of any change in aged care roles and responsibilities. 

Recommendations 

The recommendations contained within the report offer older Australians greater choice in relation to the location and standard of their accommodation as well as in the mix and level of services. 

Key reforms include: 

• the introduction of a Government backed Australian Care Home Credit scheme to operate similarly to a reverse mortgage product
• the establishment of an Australian Age Pensioners Savings Account for deposit of the proceeds of the sale of family home (exempt from income and assets tests for the purposes of the pension)
• the removal of restrictions on residential and care packages and moving from a residential-based to a community-based system with most support and care provided in the home
• the establishment of an Australian Seniors Gateway Agency (ASGA)
• the establishment of the Australian Aged Care Commission
• the expansion of training programs for professionals and providers
• the development of Carers Support Centres

Moving forward 

The Government will now develop its response to the report's recommendations.

Other developments 

Changes to the permitted uses for accommodation bonds under the Aged Care Amendment Act 2011 (Cth) come into force in October 2011. 

For more information, please contact:

Stuart Lowe | Associate
Mullins Lawyers
t +61 7 3224 0355
f +61 7 3224 0333
slowe@mullinslaw.com.au