HOWARD'S $1.5 BILLION FOR AGED CARE

It has been reported that John Howard has unveiled a $1.5 billion aged-care package today February 11, 2007 to snatch the votes of graying baby boomers, at this years federal election. The five year spending program will offset new increases in aged-care accommodation chares, but will not include any expansion of accommodation bonds. The package aims to meet projections showing that in the next 20 years, the number of Australians aged 70 or more will double. Mr Howard announced $75 million to cover increases in accommodation payments and to support greater investment in new nursing homes.

There will also be $400 million to encourage "community care", where aged people are assisted to live in their own homes. This will involve extra training for personal-care workers and will target groups with non-English speaking backgrounds. The government will also introduce what it is calling "fair income tests". Under existing tests, self funded retirees pay higher fees. The new tests will treat all income in the same way. In calculating fees ender the new system, income will be exempted from testing, up until the maximum level of the aged pension. Existing residents will be protected from any fee rises resulting from the new system, which will affect only new aged-care home entrants.

This package represents the second installment of the governments response to the Hogan Report on aged care. In 2004 the government announced an extra $2.2 billion for the sector. The Hogan Report recommended the axing of limited accommodation bonds for high-care residents, describing the system as a confusing form of corporate debt and a source of fees. It said new residents should have the option of paying either a fully refundable lump sum held by the provider for the period of the residents stay, or be billed a daily rental charge, This would have brought the high-care system into line with the low-care sector, where residents pay bonds that generate significant income.

Building of high-care premises have ground to a halt because of funding difficulties with very dependent residents with severe disabilities. Once again we believe the self-funded aged-retirees are being unjustifiably discriminated against in that whether, the aged self-funded retirees assets were worth $1 or $10 million they are entitled to a full pension and full concessions. Evidence of this can be found if you go to THE TRUTH ABOUT PENSIONS. Discover how our Federal Government will be able to afford future infrastructure for all Australians, TRANSACTION TAX.