The Times Australia
The Times Australia

.
The Times Real Estate

.

Self-funded retirees and part-pensioners to pay more as government aims to shore up the system

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra



Self-funded retirees and many part pensioners will pay more for their aged care under the government’s reform package, endorsed by the opposition and announced on Thursday.

The changes involve a $930 million extra spend over four years, and $12.6 billion savings over 11 years.

The package, which the government says is the biggest reform in 30 years, will shift the system further towards home care, so people can stay at home as long as possible.

A “no worse off” principle will protect those presently receiving aged care from the higher imposts. The treatment of the family home won’t change.

There will be a $4.3 billion investment for Support at Home, starting on July 1 next year.

Under the new arrangements, the government will pay 100% of clinical care services, with recipients contributing to services such as help with showering and taking medications, as well as to everyday living costs such as shopping and meal preparation.

How much a person contributes will be based on the age pension means test and their personal circumstances, including their level of need and their income and assets.

A lifetime contribution cap will apply across the aged care system. This will mean no one will contribute more than $130,000 to their non-clinical care costs, regardless of their means or the length of their care. This exceeds the current cap of about $78,000.

For every dollar full pensioners contribute, the government will contribute on average $12.90. For part pensioners the government will contribute on average $6.10 for every dollar.

For self-funded retirees the government will contribute $1.60 on average for those with a Commonwealth Seniors Health Card and $1.20 on average for those without the card.

There will be a higher maximum room price that will be indexed.

Providers will be able to retain a portion of the refundable accommodation deposit (2% a year for each of five years), rather than paying it all back when the resident dies or leaves.

Under the new consumer contributions, half of new residents won’t contribute more, including all “fully funded” residents. These are defined as full pensioners with limited assets.

Seven in ten full pensioners and one in ten part pensioners will not contribute more.

The government introduced legislation for the new scheme on Thursday.

Read more https://theconversation.com/aged-care-reform-self-funded-retirees-and-part-pensioners-to-pay-more-as-government-aims-to-shore-up-the-system-238879

Rates will never be enough – councils need the power to raise money in other ways

You might have recently received voting papers for your local body elections. Going by our historically low ...

The Times Features

The Power of Community: How Support Services Improve Lives for People with Disabilities

(Source) Community extends beyond geographic boundaries because it creates a sense of belonging, where individuals become both visible and heard through supportive networks. A sui...

Aluminium vs. Steel Ladders: Which One is Best for Your Needs?

(Source) Every homeowner who reaches the attic for cobwebs alongside professional tradespeople finds reliable ladders essential for their work. A comparison between aluminium ladd...

A Parent’s Guide to Choosing the Best Children's Dentist in Bendigo

(Source) Selecting the correct dentist for child dental care seems complicated because you want someone who delivers excellent medical care while handling children effectively. Be...

5 Reasons Your Finances Deserve a Summer Refresh

Most of you are ready to change your clothing, tidy the lawn, and schedule a well-earned vacation as the days become longer and the temps climb. Summer, meanwhile, is also the id...

Optimal Locations for Smoke Alarms in Australian Homes

Smoke alarms play a crucial role in ensuring the safety of homes across Australia. They are essential in alerting occupants at the earliest signs of a fire, allowing enough time ...

10 Smart Ways Australians Can Slash Their Electricity Bills in 2025

Electricity prices in Australia continue to rise, but that does not mean you have to sacrifice your lifestyle to save money. By making a few smart changes, you can lower your pow...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping