A Medicare-style levy or a personal tax rise are being considered as options to fund future aged care needs in Australia.

A discussion paper on the issue has been released by the Aged Care Royal Commission which suggests a one to two percent tax increase or levy is needed.

Council on the Ageing Chief Executive Ian Yates told Gareth Parker the clear message from the paper is funding for aged care will need to be increased by “50 percent to 100 percent”.

“The Royal Commission is clearly envisaging changes in terms of the quality of the aged care system. In Australia that is going to cost a lot more.

“The question is how do you raise it [the funds]?”

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