A new tax or levy to help fund the aged care system as it puts pressure on the Commonwealth’s coffers has been ruled out with older people expected to be wealthier in retirement than their predecessors.

A review into the aged care system instead recommended superannuation be used to fund retirees’ aged care to take pressure off the federal budget with the nest egg largely set to make boomers wealthier in retirement.

Superannuation should be drawn upon to cover health and aged care costs given the purpose of the scheme is to help Australians save for retirement, the government-commissioned Aged Care Task Force report found. 

The proportion of people over 65 accessing the aged pension or other income support is expected to decline by 15 percentage points by the early 2060s.

Fewer people will receive the full pension rate due to increased superannuation and assets as well.

“Over the next 20 years, the number of people with superannuation balances at age 85 will grow considerably, with a greater proportion of people having significant funds available,” the report said.

A levy or tax to fund the aged care system was not recommended and has been ruled out by the government.

Prime Minister Anthony Albanese denied getting boomers to fund their retirement would punish people who worked harder as it would help make the system sustainable. 

“This isn’t about any negative aspect, this is about making sure that we have a system that’s sustainable into the future,” he told ABC radio on Tuesday.

“We’ll consider the recommendations, we know that it is a difficult time for people when you have a loved one who requires care who’s unable to continue to live at home.”

The report also called for the Commonwealth to continue taking a significant role in funding aged care services.

A strong safety net for people with low means to meet costs was also recommended.

A dwindling tax base and increased costs as people over the age of 80 triple in the next four decades meant reforms were needed to make the system more sustainable, said former NSW premier Mike Baird, who sat on the task force. 

“It’s not reasonable to think that government can do all of that, there are constraints and demands across all parts of budget,” he said.

“So asking those who have the means to contribute more is a logical step and having a safety net for those that don’t have the resources also provides some protection, so I think it’s a good balance.”

Opposition health spokeswoman Anne Ruston was also against a new tax, saying it “doesn’t necessarily address the many challenges and particularly the choice and control we’d like older Australians to have”.

“So I’m sort of resistant to putting on a levy because I think there are other ways that we can look at this.”

Senator Ruston also called for the minister to address how the system would become more sustainable with workforce shortages.

“We need a national care workforce strategy,” she added.

Catholic Health Australia called for the government to swiftly implement the report’s recommendations.

“The fairest way to deliver extra funding is to ask people who can afford it to contribute more for their accommodation and living expenses, costs they have covered over their adult lives,” CEO Jason Kara said.

The task force, chaired by Aged Care Minister Anika Wells, made 23 recommendations which are being considered by the government.

This post was originally published on Michael West.