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On Sustainable Aged Care Financing in Australia

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  • Michael Sherris

Abstract

The Final Report of the Royal Commission into Aged Care Quality and Safety (Commonwealth of Australia 2021) highlighted the challenges in developing a sustainable financing system for aged care in Australia. The report recommended additional funding both in the short term and longer term so as to provide an adequate level of aged care quality for older Australians, including exploring an actuarially based contributory social insurance scheme for aged care. Sustainable financing of aged care requires a balance between government tax‐based financing, individual contributions during working life through an aged care levy, copayments for aged care costs for those receiving aged care and means testing for these copayments. There should be a role for private market insurance and financing to supplement government financed aged care support.

Suggested Citation

  • Michael Sherris, 2021. "On Sustainable Aged Care Financing in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(2), pages 275-284, June.
    • Handle: RePEc:bla:ausecr:v:54:y:2021:i:2:p:275-284
    DOI: 10.1111/1467-8462.12426
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    References listed on IDEAS

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    1. Shao, Adam W. & Hanewald, Katja & Sherris, Michael, 2015. "Reverse mortgage pricing and risk analysis allowing for idiosyncratic house price risk and longevity risk," Insurance: Mathematics and Economics, Elsevier, vol. 63(C), pages 76-90.
    2. Daniel Alai & Hua Chen & Daniel Cho & Katja Hanewald & Michael Sherris, 2014. "Developing Equity Release Markets: Risk Analysis for Reverse Mortgages and Home Reversions," North American Actuarial Journal, Taylor & Francis Journals, vol. 18(1), pages 217-241.
    3. Joelle H. Fong & Adam W. Shao & Michael Sherris, 2015. "Multistate Actuarial Models of Functional Disability," North American Actuarial Journal, Taylor & Francis Journals, vol. 19(1), pages 41-59, January.
    4. Zixi Li & Adam W. Shao & Michael Sherris, 2017. "The Impact of Systematic Trend and Uncertainty on Mortality and Disability in a Multistate Latent Factor Model for Transition Rates," North American Actuarial Journal, Taylor & Francis Journals, vol. 21(4), pages 594-610, October.
    5. Shao, Adam W. & Chen, Hua & Sherris, Michael, 2019. "To borrow or insure? Long term care costs and the impact of housing," Insurance: Mathematics and Economics, Elsevier, vol. 85(C), pages 15-34.
    6. Cho Daniel & Hanewald Katja & Sherris Michael, 2015. "Risk Analysis for Reverse Mortgages with Different Payout Designs," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 9(1), pages 77-105, January.
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    1. Ventura-Marco, Manuel & Vidal-Meliá, Carlos & Pérez-Salamero González, Juan Manuel, 2023. "Joint life care annuities to help retired couples to finance the cost of long-term care," Insurance: Mathematics and Economics, Elsevier, vol. 113(C), pages 122-139.

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