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. 2020 Dec;39(4):366-374.
doi: 10.1111/ajag.12854. Epub 2020 Oct 14.

How strong is the housing assets pillar of funding for residential aged care?

Anna L Howe  1
Affiliations

How strong is the housing assets pillar of funding for residential aged care?

Anna L Howe. Australas J Ageing. 2020 Dec.

Abstract

Objective: To explore reasons for the gap between the perception that high home ownership provides a strong pillar of funding for aged care accommodation and the actuality of half of those in residential care having this cost met by the Accommodation Supplement.

Methods: Review of data from Australian Bureau of Statistics and administrative sources, and recent research studies.

Results: Trends in payment methods show continuing reliance on the Accommodation Supplement. Reasons are found in patterns of home ownership at older ages, changes in tenure and living arrangements over the age range, and increasing use of the exchange value of housing assets. Policy tensions arise between protecting access for low means residents and requiring those who are able to pay to do so.

Conclusions: The housing assets pillar at advanced ages is not as strong as early in retirement and makes it increasingly unreliable as a source of funding.

Keywords: funding; income; living arrangements; policy; risk.

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References

    1. Henderson R. Poverty in Australia. Commission of Inquiry into Poverty. First Main Report. Canberra, ACT: Australian Government Publishing Service; 1975. Chs 5, 10.
    1. Kendig H. The cumulation of inequality: housing costs and income support in old age. Aust J Ageing. 1984;3:8-15.
    1. Kewley TH. Social Security in Australia 1900-72. Sydney, NSW: Sydney University Press; 1973:315-325.
    1. The current paper is part of research in progress on integrating aged care funding and the retirement income system. A report on the project is available from the author; publication of papers in progress.
    1. Parliament of the Commonwealth of Australia. In a home or at home: accommodation and home care for the aged. Report from the House of Representatives Standing Committee on Expenditure (Chair L McLeay). Canberra, ACT: Australian Government Publishing Service; 1982: 38-41.

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