Australian families are struggling to keep up with care costs.
Wednesday 3rd May 2006
A new report released today shows that there is ever financial
increasing pressure on those who provide care for their loved ones
namely children, the elderly and those with a disability. The lack of
quality and affordable care means that carers are finding it more
difficult than ever to remain in the workforce. This has a direct
impact on the financial wellbeing of Australian families now and into
the future. The report will be co - launched by Taskforce on Care
Costs Chair Juliet Bourke.
The
AMP and National Centre for Social and economic modelling (NATSEM)
report – titled “Who cares”? - is a comprehensive study of current
patterns of care and its associated costs. It provides valuable
insights into emerging work/care issues and, in particular, the growth
in demand for elder care. This comes at a time when the Australian
workforce is getting older and the care to worker ratio is shrinking.
“What
this report shows is that we’re not adequately meeting the changing
needs of Australian carers and this reduces labour force participation
rates. We need to be able to give carers choice – choice to care for
their loved ones and to continue in the workforce if they want to. That
way everyone wins. There’s less dependency on Government welfare and
carers are still building a secure financial future through
superannuation”, says TOCC Chair Juliet Bourke.
The
Taskforce on Care Costs has held discussions with the Federal
Government to explore opportunities to resolve to this dilemma. Some of
the solutions being discussed include the expansion of the 30%
child-care rebate to include elder and disability care costs and the
Fringe Benefit Tax arrangements. “The Taskforce on Care Costs is
currently developing financial solutions to the work/care dilemma which
will enable workers to better balance their work and caring
responsibilities and thus benefit Australia as a whole”, she adds.
In 2005 TOCC launched Creating Choice: Employment and the cost of care.
TOCC is currently undertaking a formal Review of actions taken by the
Federal Government to address the 2005 Report findings, as well as to
identify any new developments which have arisen over the past year in
relation to the cost of care. The focus of 2006 Review is on
identifying solutions to the cost of care/work dilemma, solutions which
are financially sustainable to the Australian community, provide
employees and employers with real choice, and are equitable across
income groups (ie high and low income earners).
The 2006 Review involves three key elements:
1.
TOCC is currently administering a random sample national survey of
workers with caring responsibilities, as well as of the unemployed with
caring responsibilities. In part the survey asks questions about the
perceived impact of the 30% child-care rebate on workforce
participation choices;
2. TOCC has undertaken an
international comparative analysis of initiatives to address cost of
care issues in similarly placed countries (e.g. Canada and New
Zealand); and
3. TOCC intends to commission micro-simulation
modelling to understand the likely impact of the Taskforce’s “working
model” of financial treatments on workforce participation and
individual and net effects on government revenue and expenditure.
It is expected that TOCC’s 2006 Review will be launched on 1 July 2006.
About the Taskforce:
The
Taskforce on Care Costs is supported by a high profile group of
business that includes ANZ, Westpac, McDonald’s Australia, Qantas,
Toyota, Jones Lang La Salle, Freehills and the ASX, as well as
non-government organisations such as the NSW Equal Employment
Opportunity Practitioners’ Association. The aim of TOCC is to
investigate the financial cost of care and how it impacts workforce
participation, and to promote reforms within a policy framework of
financial sustainability, equity and choice.
Sean Brogan at Bennelong Media.
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