There is no doubt that an age care crisis is fast approaching. Those over 65 presently constitute 16% of the population - by 2031 that will rise to 26%.
There are ominous moves to remove the cap on fees charged - and remove the limit on the number of beds available from care providers. Both are a necessity if future demand is to be met - but they will come at a cost !
The family home has long been a protected shibboleth. It is not subjected to capital gains tax ( GST ) and it receives preferential treatment by way of rebates when owned by the elderly. Now there are suggestions that it should be sold to fund retirement care.
The mantra emanating about aged care suggests that " the wealthy " take major responsibility for their care costs in old age. Anybody who owns their own home can these days be described as " wealthy " !
Many will see moves to include the family home as an aged care asset as the thin edge of the wedge when it comes to separating home inheritance from the aged and their children. It has long been the dream of most people to leave behind a nest egg for their children when they leave this life. Perhaps the reality of age care costs is about to see that dream shattered !
Moves on the family home were probably inevitable. They have become huge financial assets - and as everyone knows there is always danger lurking when politicians find themselves stranded between custom - and a big bag of money !
Get ready for the " hard sell " ! It will all sound just so reasonable, but when push comes to shove it simply means that the family home has to go - if you want a nice, comfortable bed in a nursing home with full care.
Pity the people who rent - and don't have a home to sell !
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