The Committee for the Economic Development of Australia (CEDA) has called for three per cent of superannuation to be put aside to cover healthcare costs, as part set of recommendations aimed at ensuring the long-term sustainability of the country's universal healthcare system.
The recommendation echoes former Prime Minster Paul Keating's suggestions made at the Association of Superannuation Funds of Australia (ASFA) conference last year.
CEDA said Government needed to either increase the current super rate or use a portion that has already been paid to cover the increasing cost of Australia's universal healthcare system.
CEDA chief executive professor Stephen Martin said Australia risked the rationing of healthcare services, such as longer waiting times for surgery, if it did not introduce reforms to contain the increasing cost of Australia's universal healthcare system.
The system would not be sustainable as it was if the current rate of increasing utilisation, he said, with meaningful reform being the only way out.
"The combination of growing utilisation of services, combined with an ageing population, has the potential to result in spiralling healthcare costs for future generations and will also reduce government funding available for other key areas from education to infrastructure," he said.
Additionally, CEDA recommended designating a portion of tax revenue directly to healthcare spending to provide a cap on spending and improve the transparency of healthcare costs.
Further recommendations included increasing the use of generic drugs by taking advantage of opportunities when patents expired, and building on Australia's comparative advantage in the biomedicine industry.
CEDA suggested better engagement between science, technology, engineering and mathermativs students with industry to ensure courses reflect skills demand in the industry.
Originally published on Super Review.
