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Around $27 billion was spent on Australia’s aged care system in the 2018-19 financial year, of which the federal government contributed around $20 billion.
Economists warn that implementing the minimum recommendations of the aged-care royal commission would require annual expenditure on the sector to be increased by up to $9 billion. However, this could rise to about $15.5 billion a year if the federal government adopts the most ambitious and costly reforms recommended by commissioners Lynelle Briggs and Tony Pagone, including lifting the Medicare Levy by 1% of income tax.
From The Guardian:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.