Super health fund suggested
Liberal MPs have proposed using a superannuation increase to fund aged care.
Liberal MPs Jason Falinski and Katie Allen say the extra money from lifting the super guarantee to 12 per cent should be put aside recommendations from the royal commission into aged care.
They put forth the idea after Prime Minister Scott Morrison said the estimated $10 billion a year needed to improve aged care is a “challenge to all of us”.
While the government says it hopes to solve this challenge in the budget, some are sceptical that it will do as much as is needed.
The aged care royal commission found that “some form of aged care levy should be introduced”.
Mr Morrison says he is “wary” of new taxes and does not “lean” in their favour.
Some of the other ideas being thrown around include changing the treatment of elderly Australians’ family home in the asset means test, or possibly increasing the user contribution for aged care.
Industry Super Australia chief executive, Bernie Dean, has unleashed on the idea, saying; “once again when facing a policy or political problem the government can’t easily solve some government MPs’ first instinct is to raid super”.
“From housing affordability, sluggish wage growth, domestic violence support, economic stimulus and now aged care – some government MPs see super as a magic pudding solution for everything except for providing an adequately funded retirement,” he said.
The Liberal MPs’ idea is not dissimilar to one put forth by former prime minister Paul Keating, who has suggested extra super could be used for ‘longevity insurance’ to fund care of over-80s.
The Federal Government has been at war with itself over legislated superannuation rises that will see it increase from 9.5 per cent to 10 per cent in July and then to 12 per cent in later years.
However, the government will reportedly allow the increase to 10 per cent to stand.