IPSWICH residents with substantial Super savings could be forced to “ring-fence” a slice of their superannuation to pay for their own aged care.
Aged Care Minister Anika Wells has announced a task force of economic, finance, public policy, First Nations and consumer advocacy representatives would be set up to advise the federal government on how to get more funding into aged care.
Assistant Treasurer Stephen Jones said the task force would consider a range of funding options.
He said the nation needed to have a conversation about a proposal that would require individuals to “ring-fence” a portion of their superannuation to fund aged care.
“It strikes me as odd in a system which is about retirement income … that a third of the value of cheques that superannuation funds are writing at the moment are bequests,” Mr Jones told ABC News
“It’s not the purpose of superannuation to have a tax-preferred estate planning mechanism, it’s about providing for people at the end stages and in their retirement.”
Industry Super Australia chief executive Bernie Dean said ring-fencing a portion of super is not the answer for aged care funding.
“Commandeering a portion of super guarantee for aged care is unfair to those who won’t need it and diminishes the ability for many Australians to save for other things they need in retirement,” he said.
“It would leave retirees and the taxpayer worse off.”
Deputy Liberal leader Sussan Ley said she did not think taxes were the answer to funding the aged care system.
“Suggestions that involve new taxes and new levies are always going to be of concern to us,” she told reporters in Canberra.
“We’ve got a government who said ‘no new taxes’ when they came into government.
“But we do want to work constructively with the government for sustainable solutions in aged care, because it’s just too important to get wrong.”
The task force is preparing an interim report, due in October, before its final report is handed to the government in December.