Aged Care Taskforce: 23 Recommendations from the Final Report

The aged care sector stands at a critical juncture, facing the challenge of meeting the evolving needs of an ageing population while ensuring equitable access to quality services. Recognising the pressing need for reform, the Aged Care Taskforce has outlined 23 recommendations aimed at reshaping and revitalising aged care in Australia.

Recommendation 1:

Underpin the Support at Home Program with inclusion and exclusion principles and clearly defined service lists.

Recommendation 2:

Continue the significant role for government funding of aged care services. A specific tax or levy to fund aged care is not recommended.

Recommendation 3:

It is appropriate older people make a fair co-contribution to the cost of their aged care based on their means.

Recommendation 4:

Ensure a strong safety net for low means participants to meet aged care costs.

Recommendation 5:

Make aged care fees fairer, simpler and more transparent so people can understand the costs they will incur if they access aged care.

Recommendation 6:

Establish appropriate arrangements to allow older people and providers to smoothly transition to any new arrangements, including grandparenting arrangements for those already in residential aged care and phasing in for home care.

Recommendation 7:

Establish a fee-for-service model for Support at Home that ensures participants only pay a co-contribution for services received.

Recommendation 8:

Introduce Support at Home participant co-contributions that vary based on the type of service accessed.

Recommendation 9:

Continue to focus government funding in residential aged care on care costs, with a significant role for resident co-contributions in non-care components.

Recommendation 10:

Funding for daily living needs to cover the full cost of providing these services. It is recommended this be composed of the Basic Daily Fee and a supplement.

Recommendation 14:

Review the Accommodation Supplement, including improving incentives to meet the accommodation design principles.

Recommendation 15:

In addition to the other accommodation recommendations, develop a package of measures to improve accommodation funding, equity between residents and transparency in the near-term. This will help place accommodation income on a long-term sustainable footing and position the sector for the ultimate phase out of RADs.

Recommendation 16:

Establish appropriate safeguards and incentives to protect access to residential care for supported residents.

Recommendation 17:

Consider the appropriateness of the current remoteness classification system.

Recommendation 18:

Continue block funding in thin markets where appropriate and necessary. Consider any other supports necessary to ensure access to care in under serviced markets.

Recommendation 19:

Consider ways to encourage providers to develop and scale innovative care models, invest in technology, and conduct research into best practices, including through:

• the recommendations outlined in this report to improve the viability of the aged care sector
• tasking the Aged Care Quality and Safety Commission with supporting innovation by identifying innovative practices and promoting these across the sector.

Recommendation 20:

Raise awareness of existing financial products that enable older people to utilise their wealth in retirement and provide confidence they can afford future aged care costs.

Recommendation 21:

Task the Behavioural Economics Team of the Australian Government (BETA) to provide advice on how to encourage people to consider their future aged care needs at an appropriate stage of life.

Recommendation 22:

Review and streamline financial reporting to government where possible to ensure reporting is genuinely enhancing transparency.

Recommendation 23:

Improve communications between the Independent Health and Aged Care Pricing Authority (IHACPA) and providers and participants regarding its pricing advice and decisions, and task IHACPA with:

• a review of its pricing in rural and remote areas
• costing of the supplement for everyday living