Implementing the recommendations of the Royal Commission into Aged Care Quality and Safety will require additional Commonwealth funding of at least $10 billion per year, and there are several revenue tools which the government could use to raise those funds.
Key Findings:
- $10 billion per year (approximately 0.5% of Australia’s GDP) would be the minimum required to move forward with the urgent reforms advised by the Commission
- Australia’s public spending on aged care is much lower than other industrial countries with better records of aged care service
- Australia’s overall tax collections are also much smaller (by about 5% of GDP) than the OECD average
“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.