Funding entry to aged care up in the air again – village and care operators in the dark. Australian Pension Bonds have hit a wall it seems. The government feed to the media on its view of bonds and the recommendatios in the Productivity Report is set out in the Fairfax press:

“...sources said the package would not include a recommendation for the government to act as a reverse mortgage provider in which the elderly could borrow against the value of their house to fund their care.

Nor would the government support an account into which people could bank the proceeds of selling their house and use them to pay for their care and pension needs.
But there could be a user-pays element in which people sell their homes and pay a bond reflecting the quality of care”.

Sounds like the status quo, meaning don’t give anything new to the Opposition to attack the Government. What will banks and valuers think of this uncertainty?

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