Prime Minister Anthony Albanese says the government is not considering any change to the treatment of the family home in the aged care asset test.
The federal government established a taskforce last year to find a consensus on how to properly fund aged care, following a range of recommendations made by a damning royal commission into the sector.
A final report from the taskforce was due to be released in December but is still being considered by the government.
Asked in parliament to rule out changes to the treatment of the family home in aged care assessments, Aged Care Minister Anika Wells refused to do so.
But the prime minister later clarified it’s not on the table.
“There is no change to the treatment of the family home in any of the documents that have been before the government. None,” he said.
The ABC understands the government is also opposed to any new Medicare Levy-style tax increase, despite the recommendations of the two royal commissioners.
Commissioner Tony Pagone called for a 1 per cent levy on high income earners, and commissioner Lynelle Briggs called for a broader aged care levy on all taxpayers.
Instead, it’s understood the government is likely to strengthen the means test on assets other than the family home.
Aged care almost entirely taxpayer funded
Only a small portion of the value of the family home is currently assessed when calculating aged care fees.
As of January, the “family home exemption cap” is set at $197,735.
Homes valued above this cap are treated the same when determining how much an aged care resident can afford to pay.
It means someone owning a $300,000 apartment receives the same treatment as someone owning a multi-million dollar home.
The Parliamentary Budget Office has estimated the cost of aged care will climb by more than 80 per cent over the next decade as the population ages.
Taxpayers currently fund 96 per cent of residential care costs, with only 4 per cent paid by residents through the means testing component.