Retirees concerned at lack of funding details in draft aged care act

In a statement, the Association of Independent Retirees said the draft was welcome as it provided many important reforms to improve the quality and safety of aged care.

However AIR chief advocate Wayne Strandquist, said the source of funding, fees, payments, subsidies, consumer contributions and means-test arrangements are not included in the exposure draft legislation.

"To provide a comprehensive response to the New Aged Care Act Exposure Draft and Consultation Paper by February 16, 2024, full and partly self-funded retirees need to evaluate the costs and affordability of the reforms described in the new draft Act,"

Mr Strandquist said it was essential that the basis for capital contributions and the ongoing care costs for aged care recipients be known before the consultations are completed.

"It is very difficult to consider the implementation of reforms proposed in the new Act without knowing how the provisions of the new Act will be funded and specifically who will bear the cost?" he said.

"There is also concern that with the additional safeguards and oversight incorporated into the New Aged Care Act for the Department of Health and Aged Care governance, the Aged Care Quality and Safety Commission, Office of Inspector General of Aged Care, the Office of Complaints Commissioner and the Aged Care Quality and Safety Advisory Council, the overall administration costs of aged care will increase."

Mr Strandquist said while there has been some public discussion on how aged care should be funded in Australia, there is no consensus.

As with intensive medical care throughout their lifetime, not all the population will require intensive aged care in their later years," said Wayne Strandquist.

"Members of the Association of Independent Retirees support changes to legislation that will provide safe, available, affordable and high-quality aged care and the new Aged Care Act needs to provide all the details of how this will be done."