Caring for older Australians

The Productivity Commission has released today (21st Jan 2011) its far reaching report on the current status and its suggested plans for the aged care industry. The PC report recommends substantial changes to the current system.

At Aged Care Connect, we have been quietly helping Australian families, struggling with the current aged care maze, since 2002. We agree with and welcome the recommendations made in the PC report. The changes suggested will result in a much improved aged care system within Australia.

The following are the key points made within the PC report:

* Aged care assists over one million older Australians and its range and quality of services have improved over the last decade.

* But the current aged care system suffers several key weaknesses:

* The system will be further challenged by an increase in the numbers and expectations of older people, a relative decline in informal carers and the need for a larger workforce.

* The Commission's proposals address these weaknesses and challenges and promote higher quality care. The focus is on enhancing the wellbeing of older Australians promoting independence, connectedness and choice.

* Safety and quality standards would be retained but current limits on the number of residential places and care packages would be removed, as would the distinctions between low and high care and between ordinary and extra service status.

* A new independent regulatory commission would transparently recommend to the Government the price for care services and for standard accommodation for supported residents, be responsible for quality accreditation, and address complaints.

* The Australian Government would manage its fiscal exposure by setting the criteria for needs assessments, the resource levels for approved services, the co-contribution schedules and the standard for basic accommodation.

Under the proposed reforms, older Australians would:

- contact a simplified 'gateway' for: easily understood information; assessments of care needs; assessments of financial capacity to make co-contributions; entitlements to approved services; and care coordination, all at a regional level o receive a flexible range of care and support services that meet their individual needs and that emphasise, where possible, restorative care and rehabilitation

- choose, where feasible and appropriate, to receive care at home or in a residential facility and choose their approved provider

- contribute in part to their cost of care (with a maximum lifetime limit) and meet their accommodation and living expenses (with safety nets for those with limited means)

- have access to a government sponsored equity release scheme to pay for their care and accommodation charges if they have assets but limited annual incomes

- choose between paying a daily charge or an equivalent bond for the accommodation costs of residential care with both aligned to the real cost of accommodation

- retain their age pension when selling their home (and if paying a lower capital sum or a daily charge for their new accommodation) by purchasing an Australian Pensioners Bond

- choose whether to purchase additional services or a higher quality of accommodation if that is what they want and can afford to do so.

Download the Productivity Commission: Draft Report

Caring for Older Australians - The Key Points