Cockburn Gazette 23 August 2011 Pg 5
Progressive proposal may enable seniors to contribute to costs while keeping homes
By LYNDSEY WETTON
CITY of Cockburn seniors could soon be able to contribute to their aged care and accommodation costs without having to sell their homes, after a Productivity Commission report provided recommendations for an overhaul and simplification of the aged care system.
The report, titled Caring for Older Australians, recommended the Federal Government create an aged care home credit scheme, which would allow seniors to unlock the equity in their home to cover the costs of care.
Under the present system, the family home is not included as an asset if a person’s spouse or partner remains living there and unless their remaining assets are valued at an excess of about $70,000, the person’s care will be paid for through a combination of the aged pension and government subsidy. Under the recommended reform, 50 per cent of the home’s value will be able to be used as equity in this situation.
The report also recommends that aged care providers should be able to seek approval to provide all levels of care, in a bid to expand services and reduce waiting lists. Southern Cross Care chief executive Stuart Flynn, whose company runs the Frank Prendergast residential facility in Success, believes because of large numbers of Baby Boomers starting to enter aged care, reform is necessary for the industry to retain its high level of care quality.
“Under the proposed system residents will have much more choice and control of the services they need and want,” Mr Flynn said.
“The current system is complex and confusing and people are often forced into making choices and decisions when they are under pressure to do so and do not have easy access to the necessary information.”
Aged and Community Services of WA (ACSWA) chief executive Stephen Kobelke said he welcomed the report because it provided an excellent future system.
“Australia is widely regarded as having one of the best aged care systems in the world, but the way we provide care is not sustainable and that’s why it’s critical Government adopts the key aspects of the Productivity Report,” he said
See www.pc.gov.au for details.