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Prime Minister Scott Morrison. Photo: David Gray/Getty Images

Morrison rejects aged care tax trade-off

Prime Minister Scott Morrison has ruled out introducing an income tax hike to cover the cost of providing aged care.

A report ordered by the aged care royal commission has found either a one per cent tax increase or a rise in the Medicare levy would be required to pay for crucial improvements in nursing homes.

Mr Morrison has indicated there will be more money for aged care in the upcoming federal budget.

But he dismissed the idea of hiking the Medicare levy to pay for it.

“The one way you build your economy back is you don’t hit it with higher taxes,” Morrison told reporters in Canberra on Monday.

“That’s not our plan, it’s never been our plan.

“Our plan to grow our economy has always been about getting off people’s backs, not getting on them.”

Morrison said he would respond to the full recommendations from the royal commission when they are released next year.

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One comment

  1. I would be interested to know how our PM expects to pay for the cost of Aged Care. Although there has been increasing funding over the years for aged care this is more likely due to the increasing numbers of aged citizens requiring care, not due to a desire to improve the current levels of care that the community and government expects of aged care providers. That rise in funding just goes to support the increase in the size of a failing system, not improving it. With the findings of the Royal Commission and implementation of the new standards for aged care, if the government and the community wants the aged care sector to provide a much higher level of care then they have to be prepared to pay for it. If we as a community are unable or not prepared to care for our family members then the only choice as I see it is we have to pay for it through a tax.

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