Overhaul sought for aged care

SYDNEY (AAP) - Older Australians would contribute up to $60,000 for the cost of their aged care and face "uncapped" charges for nursing-home accommodation under a proposal being considered by the federal government.
But they would not be forced to pay a bond or sell their family home to raise cash for their care under the Productivity Commission's plan.
Prime Minister Julia Gillard is refusing to rule in or out any of the recommendations contained in the commission's report, Caring for Older Australians, released on Monday.
But Ms Gillard promised Labor would "start aged-care reform in this term of government".
The commission is arguing for a complete overhaul of the sector with a clear separation of charges for care and accommodation.
It proposes progressively deregulating the number of care packages provided in the community and the supply of beds at hostels and nursing homes.
Prices would also be uncapped.
Accommodation bonds would be allowed for all residential places but they'd be optional. People could instead choose to pay daily or weekly "rents".
"Older people would be able to choose the standard of accommodation that they want and could afford, just as they have done when living in the community," the report states.
A safety net would protect those who couldn't pay with providers obliged to provide a set number of government-supported places.
To ensure people won't have to sell their homes, the commission wants the government to offer loans against their principal residence where dependants could continue living.
People who did opt to sell would be able to invest the proceeds in a government savings account.
The money would be exempt from income or assets tests so that elderly Australians could keep their pensions.
On the care front, people would be asked to make a means-tested "co-contribution" to the cost of services.
The poor would pay nothing while the wealthiest could pay up to 25 per cent of the total cost with the government picking up the rest of the tab.
For instance, a pensioner who didn't own a home would pay just $40 a fortnight for community care worth $961.
By way of contrast, a self-funded retiree who owned a $1 million home would be expected to provide $240.
But there would be a lifetime limit for everyone of $60,000.
The elderly welcomed the commission's report, especially the suggestion that they receive a care "entitlement" from the government according to their needs. They'd be able to take that to a provider of their choice.
The providers themselves are pleased too.
UnitingCare Australia national director Lin Hatfield Dodds says it's only fair that Australians who can afford to pay for their care and accommodation do so.
"Uncapping price is a good thing," Ms Hatfield Dodds told reporters on Monday.
"There are some Australians who are living in fairly luxurious houses now and they are going to want fairly luxurious accommodation when they go into a nursing home."
Catholic Health Australia CEO Martin Laverty argues the test now is for politicians to put the interests of older Australians ahead of their own.
"In this hung parliament many of us are concerned that there could be opposition for opposition's sake," Mr Laverty said.
But opposition spokeswoman on ageing Concetta Fierravanti-Wells is calling for action - not delay.
"It was clear from the prime minister today that she has no firm plans to act on aged-care reform any time soon," Senator Fierravanti-Wells said.
"Despite the many reviews, reports and discussion, all we heard from the prime minister was the promise of more talk and more conversation."