This week was one of the most highly-anticipated in the Royal Commission into Aged Care Quality and Safety’s history.

And it’s easy to see why.

With the focus on the sector’s funding and financing, the question of how Australia is going to pay for any recommendations made by Commissioners came to the forefront.

The witness list was star-studded, with the likes of Former Primer Minister Paul Keating and Former Federal Treasurer Peter Costello appearing in the witness box.

And the suggestions were just as interesting.

A HECS-style model to foot the bill – Keating

The former PM was the first big name to appear.

While he made a lot of interesting points, the proposal that drew the headlines was his recommendation for a HECS-style loan to pay for aged care.

The loan scheme would basically see people credited for the aged care services that they use, with the loans eventually paid off after they’ve passed away with their estate.

“We’re not forcing anyone out of their home, we’re not obliging aged persons to negatively mortgage their home, you’re not asking families to chip in and pay for their relatives in their accommodation or their care, and so I think such a system has a lot of advantages,” Mr Keating said.

And if the assets aren’t there?

Commissioners quickly saw a hole in Mr Keating’s suggestion, asking what would happen if an individual ran down their assets to avoid repaying the loan.

But the former PM’s answer was simple.

If this happens, the Government should foot the bill.

“If there’s not assets there, then the Commonwealth pays but it’s a very nice way of working out what the Commonwealth should really pay vis-a-vis the residual assets of aged person in superannuation or bricks and mortar assets etc., whereas the problem about prefunding it is you’re trying to second guess all the time how much is needed,” he said.

But could it work?

It’s an interesting question.

It’s clear that something needs to change, but less clear what this change should be.

But, as Mr Keating said, a wealthy country like Australia should be able to support people beyond their 80s.

It’s worth looking for a solution.

But it will take strong leadership to do so.