As West Australia’s budget begins to feel the squeeze from retiring baby boomers across the state, it poses the question, how will the rest of the country cope?
WA’s ability to fund infrastructure and services from dwindling revenues led Under-Treasurer Tim Marney to warn of a demographic "tipping point". The concern is that as an aging population gets older and sicker, boomers will contribute less while drawing more heavily on state government services.
Consider the cost of a supplying a bed, three meals a day and aged care support. The government currently do this for $41.22 a day. Imagine the quality of care you’d receive if they are forced to drop that figure.
Chris Twomey, spokesman for WA Council of Social Service, agreed adding that "we are also concerned that single women over 55 with little or no superannuation are emerging as a particular at-risk group for disadvantage." He noted with some concern the increasing gap between retirees with superannuation and property and those without.
If funding aged care is a problem in WA, it’s a particular problem for states that don’t having the minerals boom to fall back on. Supporting increasing demands placed on state government is quickly becoming the challenge of the next decade.