Tax proposed on ACT beds
Recommendations from a Treasury-ordered report could see Canberra aged care providers hit with a tax of up to $20,000 per bed should the territory government adopt the recommendations.
The Canberra Times reports the government is to consider recommendations that it charges $40,000 to allow each retirement village unit to be built, $20,000 for a new nursing home bed, and $10,000 each for new child-care places.
Operators say the tax will halt extensions especially in the already struggling aged care sector where resources are already stretched.
Territory Ministers insist no action will be taken till careful considerations are made. Minister Joy Burch and Treasurer, Katy Gallagher, have both said that exemptions can be made to any new charging regime to avoid pain to the very old and the very young in the community.
The study by Australian National University academic, Professor Des Nicholls, and Macroeconomics director, Dr Stephen Anthony, was commissioned last year by Australian Capital Territory (ACT) Treasury as part of its controversial overhaul of change of use charges scheme in the territory.
“Simply put such a charge would be likely to lead to a complete drying up of provider intentions to build new places,” said Aged Care Association Australia chief executive officer, Rod Young.
“Providers are already struggling to build stand alone high care because they cannot charge enough to cover their borrowings an additional impost of $20,000 per place, if that is accurate, would make it almost impossible as places are now costing over $200,000 each.”
