Full Breakdown
Aged Care Funding: A Call for Cultural Change in Superannuation Use
3/22/2026, 3:15:55 AM
Shift in Mindset on Aged Care Funding
Tracey Burton, the chief executive of Uniting NSW and ACT, is advocating for a significant cultural shift regarding the use of superannuation funds in Australia. Speaking ahead of her final major address before stepping down, Burton highlighted that many affluent individuals believe they are entitled to fully publicly funded aged care while retaining substantial superannuation balances intended for inheritance. She emphasized the need to change this mindset, stating, “We have to shift that thinking that the system should pay for all of our care, because it is going to be limited by the amount of money the government can afford to put into it.”
Financial Realities of Aged Care
Burton pointed out that the perception of superannuation as an intergenerational wealth transfer is misguided. She argued that superannuation should primarily be utilized to ensure individuals have a comfortable retirement, which may include funding aged care services. Uniting, a non-profit organization operating 70 residential aged care homes and providing various social services, has noted an increasing number of individuals aged 85 and older who will have remaining savings in the coming decades, including those with significant funds available for aged care.
Challenges in Accessing Aged Care Services
Burton also raised concerns about the ongoing challenges within the aged care system, particularly the 200,000 individuals still on waiting lists for in-home care and support. She criticized the current co-payment requirements that full pensioners face for essential services, such as showering assistance and specialized transport. Burton proposed that the federal government should automatically exempt full pensioners from these co-payment rules, which would cost approximately $50 million annually. She stated, “Showering in home care is not considered part of care clinical care at the moment, which means that some people have to pay a co-contribution, and if they can’t afford that, they’ll miss out on the assistance.”
Government Initiatives and Funding
In response to the pressing needs of the aged care sector, the Australian federal government has recently implemented new aged care laws and announced a $4.3 billion investment in the Support at Home program, aiming to create 83,000 additional care places by the end of the financial year. Additionally, $115 million has been allocated through the Aged Care Capital Assistance Program to enhance access to residential aged care in areas such as Adelaide, the Illawarra, Perth, and the Hunter. Burton commended these efforts, particularly the increased funding for the aged care workforce and the enhancement of nursing presence in residential settings.
Conclusion: The Need for Continued Advocacy
As Australia faces a demographic shift with a doubling of the population over 65 and a declining workforce percentage, Burton's call for a cultural change in the perception of superannuation and aged care funding becomes increasingly urgent. The ongoing challenges in the aged care system necessitate not only government action but also a re-evaluation of societal attitudes towards funding aged care services.
