26 February 2020

Aged Care Changes That Every Australian Should Know

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By Michael Rambaldini | Director | Certified Financial Planner | Aged Care Professional

The past year proved to be a challenging time for the aged care system in Australia as there were investigations underway into the services and benefits that older Australians receive. Stories of neglect and the scarcity of care packages were common, and the public was dismayed with the issues of the aged care system.

Now, the Australian government wants to move forward with new resolutions hoping that it can remedy the existing issues.

But what are these new resolutions and suggestions that the government is focusing on?

  • Older Australians want to contribute further to their Superannuation balance and bypassing current restrictions. 

The older Australian population is asking for an amendment to these restrictions so they can increase contributions to their Superannuation. Situations like receiving an inheritance from family after aged 65 may have a positive outcome when the amount of money can be contributed to their Superannuation.  

  • Australians are required to report fortnightly retirement income to Centrelink as part of the system overhaul being suggested by the Coalition.

The Coalition believes this to be effective so the government can save substantially.

Plans for cost-cutting will improve the way workers would report their income with Centrelink.

  • Accurate automation on reporting income to avoid paying back overpayments.

Overpayments of large amounts were caused by discrepancies and incorrect reporting for income, thus a reform on this is deemed helpful and necessary in order for the Aged Care system to be improved.

The next important reform the Australian government is looking at is the Residential Aged Care Funding Reform. This is an assessment of how to pay residential aged care funding.

Can the aged care funding problem be solved or is it too complex considering there are too many vested interests with incomes essentially determined by government policies?

Verante Pty Ltd is a Corporate Authorised Representative of Viridian Select Pty Ltd, ABN 41 621 447 345, AFSL 515762. This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information consider its appropriateness, having regard to your objectives, financial situation and needs.