According to The AFR, Labor is reportedly considering adopting a Medicare-style levy on workers to fund aged care. This is in response to the Royal Commission into Aged Care Quality and Safety recommending the adoption of a levy to help fund the sector.
I staunchly oppose raising the Medicare Levy to fund aged care for the following reasons:
- Over-65s are the wealthiest demographic in Australia, with over 80% owning their homes, whereas home ownership has collapsed for younger Australians.
- Over-65s have experienced by far the largest increases in wealth over the past 20 years, whereas the wealth of younger working Australians has stalled.
- Over-65s are paying far less tax today than they did 20 years ago.
- Raising income taxes by lifting the Medicare Levy would worsen the inter-generational divide by punishing younger workers for the benefit of the wealthy elderly population.
Two better options that Labor could adopt are outlined below.
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