Providing Aged Care: The Case for Reform

In the years ahead, the demand for aged care will polarise between community-based care and high-care facilities. The deregulation of current restrictions on the number of residential aged-care places, accompanied by the use of competitively neutral and fully portable vouchers for users of aged care, would help the sector adjust to these changes. Price regulation should be gradually reduced, contingent on the development of increased competition in the sector.