old aussies 'to lose their homes'

Old Aussies 'to lose their homes'

by: By Isabel Hayes
From: AAP
October 25, 201110:45AM


OLDER Australians will be stripped of their security if the Federal Government pushes ahead with an "undisguised grab" of their homes as part of its aged care reforms, says a pensioners group.

The proposed overhaul of the sector will force older Australians to sell their homes and remove their security, Paul Versteege of the Combined Pensioners and Superannuants Association (CPSA) will tell its annual conference in Sydney today.

"This undisguised grab for older Australians' home equity is unfair," Mr Versteege said in his speech.

"It takes away, whether it's in one fell swoop or gradually, the security older Australians have worked all their lives for."

Under the overhaul being considered by the Federal Government, older Australians would contribute up to $60,000 for the cost of their aged care and face "uncapped" charges for nursing home accommodation.

The productivity commission wants the government to offer loans against their principal residence to ensure people won't be forced to sell their homes to fund aged care.

"For most people, (the new scheme) will mean either selling the family home and putting the proceeds in an Australian Age Pensioners Savings Account or it will mean reverse mortgaging the family home through the Australian Aged Care Home Credit Scheme," Mr Versteege said said.

"Technically, you don't have to sell your house, but practically you do, otherwise you won't get aged care."

Mr Versteege said the media had failed in its reporting of the issue.

"The media has failed to scrutinise the stunning u-turn the Labor government has done on aged care," he said, adding the government had for years resisted calls for the extension of accommodation bonds.

Mr Versteege said 24 of the 27 members of the National Aged Care Alliance (NACA) were either aged care providers or had interests in aged care.

"It goes without saying that in an organisation dominated numerically and financially by aged care providers, the aged care providers preferred policy positions will prevail," he said.

Mr Versteege also rejected media reports the aged care industry unanimously supported the productivity commission's proposals.

"I beg the media to get its act together," he said.

Mr Versteege will deliver his speech at the CPSA annual conference at 11.30am (AEDT) today


http://www.heraldsun.com.au/news/breaking-news/old-aussies-to-lose-their-homes/story-e6frf7jx-1226176030886