The Intergenerational Reports Hidden Headline: Aged care funding dropping 46% per person over the next 40 years.
As demographics shift, and as medical advancements continue to increase life expectancy, societies worldwide face the challenge of caring for an older population. Australia is no exception. According to the Intergenerational Report 2023 (released August 24), government spending on aged care services is expected to rise significantly in the coming decades. However, does an increase in nominal spending necessarily mean better care for older Australians? A closer look reveals some surprising insights. The Numbers Today In 2022, Australia's GDP was $1.675 trillion, with 1.1% allocated for aged care services. This amounts to approximately $18.425 billion. The current population utilizing these services is broken down as follows: Residential aged care: 188,000 people Home care: 216,000 people Transition care: 3,500 people Home support: 818,000 people In total, 1,225,500 individuals are using these services, translating to roughly $15,041 spent per person on aged care services in...