Australia debates pension means testing and aged care reforms

A proposal to include family homes in Age Pension and aged care means testing has sparked debate in Australia. A paper by Policy Institute Australia suggests that homes valued over $500,000 should no longer be largely exempt from asset tests. The institute claims this change could save the Federal Government approximately $21 billion annually, which could be redirected toward JobSeeker, Rent Assistance, and reducing the budget deficit.

National Seniors Australia has opposed the move, with Chief Executive Chris Grice stating it would undermine the financial security of retirees who have spent decades paying off their homes. While the Prime Minister and Treasurer have previously stated such changes were ‘off the table’, critics note that rising property values have left many retirees ‘asset rich but cash poor’.

Separately, aged care providers in Western Australia are calling for a public hearing as part of the parliamentary inquiry into the Support at Home program. Advance Ageing WA (AAWA) argues that the state’s unique geography and workforce constraints must be considered to ensure equitable care during the rollout of the federal government’s flagship in-home aged care reform.