ABSTRACT
This chapter looks at the level and pattern of aged care expenditure by government. It describes the main areas of expenditure in aged care, and argues that the controls put in place in each of these areas to contain costs have resulted in a manageable increase in government aged care expenditure. Older persons in Australia have access to mainstream social security and health care systems and the specialised aged care system. The main expenditure areas funded by government are: the government age pension, hospitals, medical services, pharmaceutical services, residential aged care services, and non-residential services. The age pension, funded out of Commonwealth government taxation, is subject to a means test on income and assets. Accommodation payments are levied by the operators of aged care facilities to enable the up-keep and improvement of the building qualities and standards. Australia has a large and varied non-residential aged care system, the core of which is the Home and Community Care system.
