The Productivity Commission’s Caring for Older Australians Inquiry - Have Your Say

On 21 May 2010, the Productivity Commission released the Issues Paper for its public inquiry into the future of Australia's aged care system. The inquiry is resultant to the Rudd Government's commitment to take responsibility for aged care policy and funding and comes off the back of several reports, including the 2010 intergenerational report on future challenges consequential to Australia's ageing population.

The inquiry opens up the opportunity for accommodation bonds to be paid in high level care. Approved providers should take this opportunity to provide feedback to the government on this issue, as payment of bonds is critical to meeting future demand in the sector.

By 2050, the number of Australians aged 85 and over will more than quadruple, triggering a significant increase in both demand for aged care services and spending on aged care. The demand for services is also expected to become more diverse due to various factors including changing patterns of disease among the aged and improvements to care technologies.

The purpose of the Commission's inquiry is to develop a detailed proposal for remodelling Australia's aged care system to cope with these statistics.

The Issues Paper identifies the following key areas for evaluation by the Commission.

Review of funding arrangements

The Commission will develop funding options that ensure access to services at an appropriate standard of care and that are sufficiently diverse and fiscally sustainable. Particular attention is to be given to specific needs groups, including people living in remote areas, Aboriginal and Torres Strait Islanders and veterans.

Review of the regulatory regime

The Commission will develop reform options in respect of any shortcomings in the current regulatory regime, including the restrictions on the use of accommodation bonds as a source of funding, excessive compliance costs associated with safety regulations and financial reporting requirements, and duplication of regulations across governments.

Roles and responsibilities of different levels of government

The Commission will consider the spread of service delivery responsibilities across the Commonwealth, state and territory governments to identify any consequential gaps in service and develop strategies to improve coordination between different levels of government, with a view to achieving a more integrated framework.

Future workforce requirements

The Commission will consider future workforce challenges consequential to the increasing demand for diverse aged care services and develop reform options to ensure the sector has access to a sufficient and appropriately trained workforce to care for the elderly. Consideration will be given to models of care, remuneration, education, training and workforce regulation

Reform options and transitional arrangements

The Commission will identify paths for transitioning from the current funding and regulatory arrangements to a new system, so as to ensure continuity of care and allow the sector adequate time to adjust to any reforms.

The Commission strongly encourages approved providers and other stakeholders to contribute to the inquiry and have their say on the future of Australia's aged care system

The Issues Paper can be viewed here. Initial submissions to the Commission are due on 30 July 2010.

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