On Sustainable Aged Care Financing in Australia

Australian Economic Review, Volume 54, Issue2, June 2021, 275-284

UNSW Business School Research Paper Forthcoming

10 Pages Posted: 2 Jul 2021

See all articles by Michael Sherris

Michael Sherris

University of New South Wales - ARC Centre of Excellence in Population Ageing Research and School of Risk and Actuarial Studies; UNSW Business School

Date Written: June 21, 2021

Abstract

The Final Report of the Royal Commission into Aged Care Quality and Safety (2021) highlighted the challenges in developing a sustainable financing system for Aged Care in Australia. The Report recommended additional funding both in the short term and longer term, to provide an adequate level of aged care quality for older Australians including exploring an actuarially based contributory social insurance scheme for aged care. Sustainable financing of aged care requires a balance between government tax-based financing, individual contributions during working life through an aged care levy, co-payments for aged care costs for those receiving aged care and means testing for these co-payments. There should be a role for private market insurance and financing to supplement government financed aged care support.

Keywords: aged care, aged care levy, care co-payments, government tax-based financing

JEL Classification: H51, H55, G28, G22, H24, I13

Suggested Citation

Sherris, Michael, On Sustainable Aged Care Financing in Australia (June 21, 2021). Australian Economic Review, Volume 54, Issue2, June 2021, 275-284, UNSW Business School Research Paper Forthcoming, Available at SSRN: https://ssrn.com/abstract=3870864 or http://dx.doi.org/10.2139/ssrn.3870864

Michael Sherris (Contact Author)

University of New South Wales - ARC Centre of Excellence in Population Ageing Research and School of Risk and Actuarial Studies ( email )

UNSW Business School
Risk and Actuarial Studies
Sydney, NSW 2052
Australia
+61 2 9385 2333 (Phone)
+61 2 9385 1883 (Fax)

HOME PAGE: http://www.asb.unsw.edu.au/schools/Pages/MichaelSherris.aspx

UNSW Business School ( email )

Sydney, NSW 2052
Australia

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