The federal government should continue to be the major funder of aged care but older people who can afford it should stump up more for  accommodation and home care services, according to the final report of the Aged Care Taskforce.

The much anticipated report, released by the government this week, contains 23 recommendations linked to funding principles that aim to support ageing in place, equitable and sustainable funding, quality, innovation and transparency.

Among them are proposals for aged care providers and residents to be able to negotiate higher prices for better services, a move to rental-style accommodation fees in residential care and more consistent and equitable fees for home care.

The Aged Care Taskforce was established last June to advise on aged care funding arrangements in the wake of the Aged Care Royal Commission.

It found the current mix of consumer and government funding is neither optimal nor fair.

Unlike the Royal Commissioners, the taskforce has shied away from recommending any new taxes or levies, favouring instead a stronger user-pay approach.

“Government funding constitutes around 75 per cent of the total costs of residential aged care funding, and 95 per cent of home care funding,” the report says.

“The Taskforce considers this is not an optimal or fair mix.

“Given the increasing wealth of many older people and the declining working age (that is tax paying) population, there is a strong case to increase participant co‑contributions for those with the means to contribute, noting that there will always be a group of participants who need more government support.”

Gov says no aged care taxes, levy

The government repeated assurances it won’t be looking to the taxpayer to fund the aged care system as it released the report on Tuesday.

“The Government confirms today it will not impose any increased taxes or a new levy to fund aged care costs or change to the means testing treatment of the family home for aged care,” Minister for Aged Care and taskforce chair Anika Wells said.

Ms Wells said all Australians had a stake in a sustainable, high-quality and dignified aged care sector.

“Australia’s aged care system is under stress. There is universal acceptance that something must change in order to ensure all Australians can age with the dignity, safety and high-quality care they deserve,” she said.

The government is yet to finalise a full response despite receiving the report months ago.

Ms Wells said the government will continue to analyse the taskforce’s recommendations before releasing a comprehensive response.

“As we consider the taskforce report and continue to implement the reforms of the royal commission, our focus will always be ensuring dignity and respect for older Australians,” she said.

*This is an edited version of a story that first appeared on Australian Ageing Agenda.