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Growth slows in ageing state

SOUTH Australians are older than the average Australian, our population is stagnating and we are having fewer babies, a population report shows.

The most common age for a South Australian is 50, almost double the most common age around the country of 26, the latest annual Business & Population Monitor report says.

SA has the slowest population growth of the mainland states, at 0.8 per cent per year, and the smallest proportion of that population growth which comes from new births.

The report, prepared by PKF Chartered Accountants and Business Advisers in partnership with BIS Shrapnel, says SA has a very low ratio of births to population, despite the fertility rate being similar to the Australian average. "The explanation for this apparent inconsistency is that younger people tend to be the ones leaving the state, and are having their children elsewhere," it says.

All this means the state's population growth "is likely to remain low for some time" and that is a danger to business, the report says.

"It appears as though poor perceived job prospects in South Australia are encouraging residents to move out of the state in search of work, dragging down population growth. This further reduces the job prospects in the state."

The report suggests businesses look to practical measures to deal with the resulting skills shortages, such as attracting skilled migrants. Business SA chief executive Peter Vaughan urged a greater intake of skilled migrants.

"We will have significant problems with skills shortages and that's going to be exacerbated by the population drift (out of the state)," he said.

PKF Adelaide partner Tony Simmons said it was up to the Government to promote the state as a "good place to live and work". Premier Jay Weatherill has announced the Government will develop a new brand to market the state internationally by the end of the year.

On a recent trade mission to London, he encouraged SA expats to return to the state which he said now offered more job opportunities. He also received a warning from global business leaders that SA must provide more affordable housing options if it is to attract skilled workers and investment.

Aged-care reforms fail to ease worry

RECORD numbers of Australians are inquiring about aged-care services, with many people shocked by how much it can cost to get old and frail.

An overhaul of the aged-care system announced by the Federal Government last month is aimed at simplifying and streamlining the system but many of the planned changes, which include more in-home care packages and standardised pricing, are at least two years away.

The population is rapidly ageing, with the Australian Bureau of Statistics predicting the proportion of people over 65 will rise from 13.6 per cent in 2010 to 16.4 per cent by 2015.

The implications of this are already evident. Aged-care provider ACH Group reported a record 17,000 inquiries about aged-care services last year alone. ACH Group general manager innovation and development Jane Mussared says many of its callers are unaware that aged care extends beyond nursing-home facilities.

"Every day, thousands of older Australians receive in-home care to assist them with household duties such as gardening, home maintenance, transport and shopping, through to medication management and more complex nursing care," she says.

These services are subsidised by the Government but costs can still vary greatly, with an hour of basic assistance a week less than $10 in some areas.

The Government says under its changes this price variation will be smoothed, while some part and non pensioners will pay more for in-home services.

Erika Wilke, founder of PrimeCare Financial Planning, which specialises in financial planning for residential aged-care services, says the cost of nursing home care is complex and understanding the expenses in deciding on a suitable facility can be overwhelming.

At present, costs can vary to the tune of millions of dollars depending on things such as the level of care required, location and whether it is a so-called "extra-service" facility.

Under government changes, a new financing authority will ensure residential care costs reflect the true cost of the service provided, fairer means testing for new aged-care residents will be introduced and annual and lifetime caps will apply to residents' contributions to care expenses.

Wilke says details on the new fee structures are "scant" and the search for the right facility with a vacancy is traumatic for families when you have to weigh up fees, payment choices, the impact on Centrelink payments and investments.

"Every day I have someone on the phone shattered as they work through the financial maze, sorting through the fact from innuendo," she says.

AMP financial planner Domenic Pepicelli says funding for aged-care services should be part of everyone's retirement planning.

"Retirement planning is not just while you're fit and healthy, but it's life expectancy where you may not be fit and healthy and may need care," he says.

Aged Care Reform

The Commonwealth government today announced a $3.7 bn package of reforms to give older Australians “more choice, easier access and better care” in their later years.

The Living Longer Living Better plan includes:

An increased number of Home Care Packages, from 60,000 to 100,000;
A rise in aged care facility places, from 191,000 to 221,000;
More options to pay for these aged care places (lump sum, periodic payments or both);
The development of an Aged Care Workforce productivity strategy; and
Projected savings of $1.6 bn from changes to the Aged Care Funding Instrument.

The Conversation’s aged care and health policy experts have unpacked the report and share their thoughts below.

Baby-boomers Retire

OVER the past year, the first of the baby boomer generation started to turn 65. At first glance, this may not seem like a significant landmark, but it signalled the start of one of the most profound structural changes in our economy.

The biggest single generation in our society has started to leave the workforce and we'll all be affected.

Boomers will buy and sell all sorts of assets, such as cars and houses, as they adjust their possessions to suit their lifestyles. But there will be other, less obvious, but nonetheless far-reaching effects.

For instance, the Training and Skills Commission has predicted that growth in the state's economy, combined with the replacement demand, will result in 163,000 job openings over the next five years.

A total of 94,000 jobs will be just replacing those baby boomers who retire, while the other 69,000 will be new jobs.

As a State Government priority, we must ensure that many thousands of workers or potential employees receive the training they need to take up these jobs or to further enhance their existing skills.

It's clear that we need to find a way to provide this training with such a huge demand only a year or two down the track.

Last year we announced a detailed plan to provide this training called "Skills for All", which aims to raise the skill levels of our workforce and get more people into training and jobs.

There are many benefits for students under Skills for All, such as more variety in training options, but the most significant change will be the reduction in course fees on a whole range of programs.

Pre-Vocational, Certificate I and II level courses will be fee-free from July this year. Qualifications at Certificate III level and above will continue to receive a significant subsidy.

We're also introducing a student loan structure with the assistance of the Federal Government, a structure almost identical to the Higher Education Contribution Scheme (HECS) and the Higher Education Loan Program (HELP) currently used in our universities. This will apply to diploma and advanced diploma courses.

It means students will not have to pay fees up front, but can instead pay them off over time when they're on a higher wage.

Students will also be able to select the training provider of their choice from TAFE SA and other approved private training providers.

Legislation was introduced into Parliament last week that will result in TAFE SA becoming a public corporation, meaning it will become more independent of government.

A Subsidised Training List has already been released that includes more than 1400 selected qualifications from national training packages and accredited courses that will be funded from July this year.

The list includes about 600 additional courses not previously funded, including courses from certificate level through to, and including, advanced diplomas.

The application process for training providers to apply to become a Skills for All provider is also now open. This is an additional quality measure requiring existing registered training organisations to meet rigorous assessment criteria before they can access training funds under Skills for All.

We're on an important countdown, so there's no better time than right now to contact TAFE SA to find out what training suits you and what free or subsidised courses are available from July this year.

Well-off seniors to pay for nursing home accommodation

THOUSANDS of wealthier older people will be asked to contribute to the cost of nursing home accommodation.

The move is part of a bold plan to expand aged care facilities.

And millions of extra dollars will be pumped into community stay-at-home care as part of a pitch by the Gillard Government for the "grey" vote.

In the biggest reforms to aged care for years, the Government is preparing to announce a new era of user-pays, including for residents classified as "high care".

The Government is determined to boost spending for aged care amid warnings of a serious shortfall in services as Australia's population ages.

The user pays scheme is in line with other budget reforms to crack down on so-called middle class welfare and to take the axe to services such as the Medicare Safety Net.

It will only require those with substantial assets to pay for their aged care accommodation, either through a bond or through regular payments.

Over time, this will affect potentially 100,000 people who are classified as requiring "high care" in nursing homes and aged-care hostels.

The changes are in line with recommendations from the Productivity Commission and have received near universal support from aged care providers, consumers, and charity groups.

Prime Minister Julia Gillard, who nominated aged care as one of her top priorities, has been forced to act after concerns from the aged care sector about major shortfalls in services.

Already governments spend about $10 billion a year on aged care but this is forecast to grow by 150 per cent by 2050 as the number of Australians aged 85 and over reaches 1.8 million.

Last August the Productivity Commission unveiled a blueprint for reform, including recommendations that people who can afford to pay should.

In a stark warning, the Aged Care Industry Council warned Treasurer Wayne Swan of serious "shortcomings" in a sector which looks after about 1 million people.

"Services are limited and flexible; there are gaps in services; there are limited choices for individuals and their families; quality is variable, especially accommodation; the system is difficult to navigate; subsidies and user contributions are inconsistent and inequitable," the council said in its letter to Mr Swan in December last year.