TOCC Reports

1. Executive Summary

Since February 2005 TOCC has released three major research papers on work and the cost of care:

1. Policy Research Paper: "Creating choice: Employment and the cost of care" (February 2005) This paper identifies the direct relationship between work and the cost of care (based on the Taskforce's 2004 random sample national survey of 500 Australian employees with caring responsibilities), as well as an international comparison of actions taken by other countries to address the work/care dynamic.
   
   
2. Interim Review: "Where are we now?" (August 2006) This review provides a status report on the impact of the cost of care on employed and unemployed carers (based on a comparison between the Taskforce's 2004 and 2006 random sample national surveys of Australians with caring responsibilities) and Government interventions between 2004 and 2006. The review found that the "work/cost of care dynamic is becoming more problematic and that Australia is falling behind international initiatives to address work/cost of care issues".
   
   
3. Final Report: "Where to now?" (October 2006) This report provides solutions to the work/cost of care crisis based on economic modelling conducted by the Melbourne Institute of Applied Economic and Social Research, University of Melbourne, as well as results from the Taskforce's 2006 random sample national survey of 1000 Australians with caring responsibilities. This report was launched on 16 October 2006 by the CEO of Westpac, Dr David Morgan and formally received by the Hon. Santo Santoro, Minister for Ageing.
   
   
4. 2007 Report: The hidden face of care: Combining work and caring responsibilities for the aged and people with a disability (November 2007). This provides detailed information on the work/care dynamic for carers of the aged and/or people with a disability. In particular, the aim of this report is to provide a holistic picture of the experience of combining work and aged and/or disability care, ie one which includes the financial cost of care and the personal, community and economic impacts of care on workforce participation. Importantly the report provides new data on workplace flexibility needs for carers of the aged/people with a disability.

Key findings from these three research papers, and proposed solutions are identified below.

2. Key findings

Five key findings from TOCC's research are:

1. There is a clear relationship between work and the cost of care:

• 1 in 4 employees with caring responsibilities is likely to leave the workforce because the cost of care is too high.
  
  
• 1 in 4 employees with caring responsibilities has already reduced their hours of work because the cost of care is too high.

2. Employees will act on the cost of care dilemma

• In 2006 the cost of care influenced the departure of 64% of unemployed carers from the workforce.

3. Workers with caring responsibilities want real choices

• 35% of employees with caring responsibilities would increase their hours of work if care was more affordable.
  
  
• 60% of unemployed carers would re-enter the workforce if care was more affordable.
  
  
• 52% of part-time employees would increase their hours of work if care was more affordable.

4. The situation is getting worse, not better

• In 2006 the CPI increased by 4%, but care costs (for children, the elderly and people with a disability) increased by 10%.
  
  
• In 2006 79% of employees with caring responsibilities say that affordability of care influenced their current working relationships, up 12% from 67% in 2004.

5. Current financial supports for Australians with caring responsibilities are inadequate in terms of level and coverage

• The Child Care Tax Rebate (CCTR) covers 30% of out-of-pocket expenses and is capped at $4000 pa.
  
  
• 75% of Australians with caring responsibilities believe their care costs should be shared equally with Government.
  
  
• 77% of Australians with caring responsibilities believe that there should be a range of delivery options for additional financial support - ie (i) payments directly to the carer; (ii) payments directly to the care service provider; or (iii) via an employer (eg FBT).
  
  
• 93% of Australians with caring responsibilities believe the CCTR should be extended to elder and disability care.

3. Key solutions

Based on economic modelling by the Melbourne Institute, and TOCC's research data, TOCC has recommended to Government two primary solutions to address the work/cost of care crisis, namely the introduction of:

1. A 50% Care Costs Reimbursement (CCR) for out-of-pocket expenses up to $10,000 pa per household; and
   
   
2. Multiple delivery mechanisms for the CCR, ie to the employee, to the care service provider and to the employer (eg via salary sacrifice).

TOCC has also made alternative recommendations, namely that the Government:

1. Investigate the extension of the Child Care Tax Rebate to elder and disability care; and
   
   
2. Extend the Child Care Benefit and Child Care Tax Rebate to fully cover Registered Care.

4. Launch of the Final Report on 16 October 2006

On 18 October 2006 TOCC launched its Final Report entitled: Where to now? The report was jointly launched by the Chair of the Taskforce on Care Costs, Juliet Bourke, together with the CEO of Westpac, David Morgan and CEO of Carers Australia, Joan Hughes simultaneously in Canberra and Sydney. The report was formally received on behalf of Government by the Minister for Ageing, the Hon Santo Santoro.