I’m not stunned at aged care fees
In a hybrid user pays / universal govt subsidised system this is the reality
What gets my goat is two things
1. Tax-free superannuation that asks retirees from age 60 to pay zero Income tax. Nada nix naught let alone FREE public transport, cheap medicines etc etc let alone refunds of excess franking credits unless you’re a former public servant in a defined benefit fund … (see below)
2. Fobbing the hefty cost onto the unfortunate 8% who end up in need of aged care and forcing them to fund the capital infrastructure of the so-called nursing homes - there is a serious cashflow deficiency problem now and will get even worse - carrying a mortgage into that scenario is worse again
The Medicare model and the education model both cover everyone (with options to pay more through private health funds and private schooling) - the aged care model forces one to contribute from the beginning so at least the lifetime cap which includes home care & aged care homes remains in place. And one way or the other is accessible to all (unlike airfares to footy finals)
So what will happen next?
Me thinks the “care at home” model noting the heavy strain on labour resources already in play
There’s not enough labour workforce to build enough new houses in far flung new suburbs 1/6 tied up in lucrative govt infrastructure projects let alone home renovations in Randwick
And the care workforce well insufficient to meet the all the needs of the NDIS, hospital, medical and aged care systems - is there a solution ? Well unpalatable to many as it involves good diet and movement (gentle exercise)
And then we got the $1.6 million TBC - well at least that’s a small contribution towards taxes
And perhaps soon we’ll get the $3 million cap on superannuation which will make a small but larger contribution
These will all limit future inheritances but let’s face it after the current 60ish baby boomers age, theres less dependants to inherit the significant wealth left to them by grandparents & parents