Invest
How Australia can afford to fix the aged care sector
Australia needs to find $10 billion to fix the broken aged care sector but is likely to commit to only a quarter of the funds required, with a think tank showing how Australia can afford to implement the aged care royal commission findings.
How Australia can afford to fix the aged care sector
Australia needs to find $10 billion to fix the broken aged care sector but is likely to commit to only a quarter of the funds required, with a think tank showing how Australia can afford to implement the aged care royal commission findings.
A new report released by The Australia Institute suggests Australia can afford to implement world-class aged care through slight raises in the tax system.
Released in March, the aged care royal commission final report contained 148 recommendations aimed at bringing about a “paradigm shift” within the sector.
While the government has pledged nearly half a billion dollars in immediate relief to the sector, to achieve the vision of high-quality aged care, The Australia Institute said the Morrison government needs to use the budget to completely fund the sector.
“Australia is one of the richest countries in the world. There should be no argument over whether we can afford to provide top-quality, respectful care to the elders who helped build our economy and our society,” said Dr Jim Stanford, director of The Australia Institute’s Centre for Future Work and co-author of the report.
In order to support the sector, Dr Stanford proposes either a 1 per cent Medicare-style levy, modest increases to personal income taxes, cancellation of the controversial stage three income tax cuts, reforms to capital gains taxes or closing company tax loopholes.
“The government has access to a whole suite of revenue options to support the ambitious and quick implementation of the royal commission’s recommendations. That effort must start with the 2021–22 Commonwealth budget,” Dr Stanford said.
Bigger, better-trained workforce
One of the key findings from the aged care royal commission was the need for more staff as well as better-trained and paid employees.
Instead of straight staff-to-resident ratios, the royal commission recommends residents receive a minimum of three hours and 20 minutes care per day provided through a mix of nurses and personal care workers.
This is instead of the current model which sees registered nurses primarily confined to offices due to paperwork duties.
The findings also state registered nurses should provide 40 minutes of direct care per nursing home resident per day.
Personal care workers would be better paid under the system, as they would require a minimum Certificate III qualification, meaning they are better trained, as well as basic English language proficiency skills.
United Workers Union aged care director Carolyn Smith said the funding shortfalls explain why aged care workers are left in tears after their shifts.
“The $10 billion annual funding shortfall is leading to horrendous human costs in aged care, with older Australians left unsafe and vulnerable, and workers left physically and emotionally exhausted,” Ms Smith said.
“This report once again underlines that the federal government needs to substantially and effectively address the human toll the aged care crisis is taking on older Australians, their families and aged care workers.”
RELATED ARTICLES
About the author
About the author
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
