CA ANZ has made a submission to the Royal Commission into Aged Care Quality and Safety regarding its consultation paper on Financing Aged Care. The submission argues that quality aged care should continue to be funded from general revenue with Australians being able to access higher accommodation standards from their own personal contributions. Tax changes that should be considered to help support the provision of aged care include reducing the capital gains tax (CGT) discount, bringing pre-CGT assets into the tax net and expanding the base and rate of GST.
Ideas which are not canvassed in the consultation paper that should be considered to assist people access different types of aged care include:
- Reverse mortgages – including the government’s Pension Loans Scheme;
- Quarantining of super, especially any proposed increases in super contribution rates into a fund akin to the Future Fund but for aged care, and
- The taxation of superannuation payments.
CA ANZ does not support the imposition of an additional levy, additional compulsory social insurance or extending or modifying the deductible gift provisions for aged care.