Final report of the Aged Care Taskforce

Published 13th March 2024

Australia’s aged care needs are increasing as the population ages, and expectations of quality improvements are high. However, the aged care sector is currently not in a financial position to meet expected demand, deliver on the required quality improvements or invest to meet Australia’s future aged care needs.

The recommendations proposed by the Aged Care Taskforce support an aged care system that is sustainable, fair and facilitates greater innovation in the sector. A sustainable, or financially sound, aged care sector is necessary to attract additional investment and ensure the sector is set up to deliver quality care for older people into the future.

For older people using aged care services, the recommendations also support a system that provides quality care when it is needed, and is simpler, more flexible and transparent. The system should enable those who wish to age in place to do so. Rules will continue to ensure equitable access for people with low means, with co-contributions from those who have the means. Government funding will focus on ensuring all older people can access the care they need, while co-contributions will be required for the things people have typically paid for their whole lives, such as daily living expenses and, for those in residential care, accommodation costs.

For providers, the recommendations support more predictable and sustainable funding in home care, and increased capacity to cover the costs of delivering services in residential care. More broadly, this would help to strengthen the financial viability of the residential care sector to encourage different forms of investment. In home care, the Taskforce recommends greater clarity for participants and providers through clearly defined inclusion and exclusion principles and service lists. There will also be an important continuing role for government support in thin markets.

The Taskforce has identified the following issues affecting the aged care sector:

• demographic change means demand for aged care services will continue to grow
• current and future generations of aged care participants have high expectations of what quality aged care looks like
• additional funding is needed to meet future demand and deliver quality improvements, but structural issues mean the sector’s financial viability is poor
• generally older people are wealthier than previous generations and the taxpayer base is declining as a proportion of the population.

The recommendations in this report aim to position the sector to address these issues.

Source:
APO, 2024, DoH (https://www.health.gov.au/resources/publications/final-report-of-the-aged-care-taskforce?language=en)