An independent inquiry into the aged care sector will focus on ensuring adequate staffing and less complexity for Australia's rapidly greying population.
The terms of reference for the Productivity Commission's public inquiry into aged care were announced by the federal government on Wednesday.
Minister for Ageing Justine Elliot said the latest Intergenerational Report showed that by 2050, nearly one-quarter of Australians would be over 65, compared with 13 per cent now.
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"Australia's aged care system provides targeted, affordable and high quality care," she said.
"But faced with rapidly increasing demand, it is important to ensure that it is equipped to meet future challenges."
One of the commission's key tasks will be to examine the sector's future workforce needs, and come up with options to ensure it has a large group of well-trained staff at its disposal.
It has also been asked to look at ways to guarantee elderly people - particularly those living in the country, veterans and indigenous Australians - have access affordable, appropriate aged care services.
Part of this will include an investigation of how well the sector already meets these special-needs groups' requirements.
Terms of reference
The terms of reference call on the commission to minimise the complexity of the aged care system for users, while maintaining financial protections and quality assurance.
Moving from current regulations to a new system should give the sector time to adjust and not interrupt care arrangements already in place.
"In developing the transitional arrangements, the commission should take into account the government's medium-term fiscal strategy," the terms state.
Ms Elliot said the commission would consider the aged care sector in light of Labor's recent pledge to contribute an additional $739 million to it.
Priorotising needs
Catholic Health Australia chief executive Martin Laverty said the government's terms of reference had prioritised the three most important needs of future aged care: choice, access, and sustainability.
"There are not enough aged care beds in places where they are needed," he said.
"Not every older Australian receives access to care when they need it.
"Providers of high care aged care beds are losing on average $13 per day per bed - this is unsustainable."
The LHMU, which represents aged care workers, was also pleased with the inquiry's terms of reference.
Unions welcome move
Union assistant national secretary Sue Lines said employees were often forgotten when it came to addressing the sector's issues.
"We especially welcome the inclusion of remuneration, training and size of workforce in the terms of reference," she said.
But the Australian Medical Association complained bitterly that the terms did not specifically address medical care in aged care facilities, and called for them to do so.
"This is a glaring oversight," AMA president Andrew Pesce said.
"There is currently no specific requirement on aged care providers to ensure that residents have access to medical care on an ongoing basis."
A draft report from the commission is expected by December, and should be finalised 12 months from the start of the inquiry.
