The Council of Australian Governments (COAG) has agreed to continue investigating the possibility of splitting the responsibility for aged and disability services between the Commonwealth and the states.

The plan would see the Australian Government take responsibility for all aged care programs, with the states managing disability services.

In a meeting that was dominated by the problems besetting global financial markets, the government leaders found time to establish a working party to determine the roles and responsibilities of the state and federal governments in regulating and funding services.

The group will put together a reform package which will be considered at the next COAG meeting in mid-November.

“This will deliver on COAG’s commitment to fix the intersection of aged care and disability services and clarify the roles and responsibilities of governments,” said a COAG statement.

The Commonwealth Minister for Ageing, Justine Elliot has assured local governments that they will continue to play an important role in the delivery of home care services, saying that the working group will consult with councils.
 
"Make no mistake, we want their involvement to remain," she told The Age.

The Municipal Association of Victoria said it was reassured by the COAG developments, after it had expressed concerns when the idea was first raised.

“This is great news for Victoria’s current and future recipients of community care and it gives local government more confidence that future reforms will respect existing state infrastructure and investment,” said the association’s president, Cr Dick Gross.

“Following COAG’s agreement to consult with local government, a comprehensive review of the service must also be undertaken to ensure the needs of aged care service recipients will be met and enhanced by any future reforms,” he added.