The impact of the ageing population

In Australia has on funding and service delivery models.

Introduction

The objective of this essay is to explain the impact, an ageing Australia has on funding and service delivery models
in the Aged Care community. The essay will first explain the different factors and reasons why Australia is facing
such a predicament. Then go on to explain the effects, the ageing population has had on the services and funding
delivery models. As well as, explain any recent amendments to legislation relating to the aged care sector. Finally
the essay will conclude with the advantages and disadvantages for implementing a course of action to reduce the
unsound effects of the prolonged ageing population.

Ageing population

From 1901 to 2008, Australia’s death rate went down from 12.2 to 6.7 per 100,000 population, according to the
Australia Bureau Statistics. When further analyzing these figures, the resultant of 5.5 decrease is caused by the
better standard of life and improved healthcare, people began to have as the years progressed. This is also
reflected by the life expectancy increase from the past century, where the average life of a new born boy was 55
years in 1901-10 to 77 years in 1999-2001. Likewise, the average life of a new born girl has increased from 59 to 82
year during the same period of time (ABS).

As for fertility rate, in 1921 it was projected to be around 3.1 children per woman in her life time, which later
increased after the World War 2 at the height of the baby boom to 3.5. Ever since that time fertility rate has
decrease to 1.97 in 2008 according to the (ABS). This sharp decrease was caused by two major factors, birth
control and the role of woman in society.

From the statistical evaluations presented above, the decrease in mortality rate and increase in life expectancy
resulting in a low fertility rate has subsequently lead to the following; more people living longer and fewer children
being born, in other words an ageing population in Australia.

Effects on services

As the number of older people increases, the internal diversity of this section of the population is also likely to
increase. The properties of this diversity will include; health status, care needs, cultural differences, disabilities,
gender, and family structures.

We will have a lot of different elderly people with different medical problems and disabilities, coming from a
diverse cultural and health background. Some of the elderly will have dementia, head injuries, strokes and
numerous other medical problems. This will effectuate to different care needs.

In understanding the number and quality of our services needed in order to meet each and every individual’s care
needs. There will be a need to increase the number of aged care facilities and skilled workers including; personal
care workers, community care workers, and registered nurses. This will help to meet the demand of the ageing
population and facilitate the distribution of aged care services.

Concluding, the effects the ageing population will have on services delivery models, will be the way in which
services are delivered, and the amount of services needed to be delivered. As stated above, the diverse aged
population will vary, as different people will come from distinctly different backgrounds. Meaning that, the way in
which we deliver our services will need to be efficient and effective such that, we will be able to meet each and
every individual’s care needs.

Effects on Funding

An increase in the ageing population will also mean that, more funding will be required to maintain and supersede
the standard of services given to elderly people.

As time passes, more skilled workers will be retiring, than the number of students graduating from universities,
due to a low fertility rate against a low mortality rate. This will have a significant impact in Australia’s workforce
and subsequently an even bigger impact on the government’s tax proceeds. At the same time, the government will
be paying more pensions as the number of older people increases. This will, potentially lead the government to
budget deficits, putting Australia’s economy in a very bad shape.

The economical imbalance of Australia will signify the need, to implement new strategies, new policies, and new
reforms. Just as the United Kingdome and United States of America have done, by introducing new reforms to cut
their spending thereby eventually decreasing their budget deficits. Before long this will reduce the input of money
to funding the aged care community.

Concluding the above, as the ageing population grows; the need to fund the aged care community will increase,
proportional to the rate at which the ageing population is increasing. That is, if we are to maintain the quality and
standard we give to the aged care community. Overall, if nothing is done to prevent the effects of the ageing
population, which will eventuate into an economical imbalance, there will be no money to fund the aged care
community.

Recent amendments to legislation relating to the aged care sector

The most recent amendments were implemented in December 2008 and took effect from January 2009. The
purposes of these amendments were to; amend the Aged Care Act 1997, Aged Care Principles 1997 and the Aged
Care Bond Security. They were to address the previous legislative flaws and maintain regulatory safe guards for
insuring quality care for the older people in Australia. These amendments were implemented to help better
protect the aged care community.

The changes implemented were, strengthened police checks, increased protection to aged care residents and
increased protection of the Accommodation Guarantee Bond Scheme.

The amendments resulted to better protection to the elderly in Australia, as well as improved aged care services.

Conclusion

The aged population in the world is growing, and as explained in this essay this can have unsound effects to a
country’s economy, as well as its ability to provide better health care for its aged care sector. This leaves a
question, what can be done to reduce the affects of an ageing population?

In the hope of reducing these effects, the government could implement incentives for woman to have more
children. Because as women have more children this will increase the number of future workers, who will be able
to replace the older people retiring. In theory, this would be the best course of action. But when pragmatically
evaluating the plan, it might not be as effective, because in a capitalist world everybody works, and so the role
woman in the society has changed. But if properly implemented, this course of action could produce results in the
long term.

The government could also, increase the number of immigrant workers and rely on immigration for its workforce.
This would be a very effective way of getting more workers into the country, because there are a numerous
number of skilled workers around the world looking for employment.