Home equity and personal capital in aged care

Ms Hills says the issue is part of a broader discussion which needs to be had in terms of personal capital, funding and the sustainability of the aged care sector in Australia.

“The Minister is correct in saying we need to ensure our domestic system is robust and sustainable,” Ms Hills says.

“How we manage home equity and personal capital in terms of providing aged care for a growing population is a critical issue. This is a discussion that must be had but one which should be thorough and wide ranging,” she says.

Benetas is calling on the federal government to ensure any and all discussions of home equity be considered as part of a broader review of aged care funding arrangements.

“If we are to have this discussion, it cannot be one which is had in seclusion nor actioned lightly. Proposals must draw upon expert advice, open to consultation and the implications of new initiatives fully understood,” she says.

Ms Hills highlights the impact of proposed changes to the Age Pension indexation and continued proposals for planning a demand driven system as additional impacts on Australia’s aged care system going forward.

“This should be a full review of these issues and should build upon previous work by the Productivity Commission and a range of stakeholders to determine a path forward,” she says.