Planning for an ageing community

Awareness to action: Local government's response to population ageing

Contents of this page

• Introduction
• Population ageing: why it matters now for local government
• The next step: moving from awareness to understanding
• Local government action: the need to plan now
• Adopting a 'whole-of council' approach
• Council self assessment checklist
• References
• Contact regarding this paper

Download Awareness to action report (762 kb PDF)

Introduction

In November 2003, ALGA entered into a partnership with the Australian Government Department of Health and Ageing to help local government meet the opportunities and challenges of an ageing population. The first step of the partnership was the development of an action plan to engage local government in a planned and coordinated national approach to population ageing issues.

On 27 July 2004, Federal Minister for Ageing, the Hon Julie Bishop MP, joined ALGA's President Mike Montgomery, to launch the Australian Local Government Population Ageing Action Plan 2004-2008. The purpose of the action plan is to build the capacity of local government to plan for an ageing population. To achieve this objective, the plan provides a flexible framework that:

• builds awareness of population ageing within local government
• encourages local government action to plan for an ageing population
• fosters partnerships to support a more collaborative approach to population ageing
• improves access to regional information on population ageing and future demographic shifts.

The plan complements other related national ageing strategies, such as the National Strategy for an Ageing Australia and intersects with the considerable work already being undertaken in individual jurisdictions.

What has been completed so far?

From July 2004 to June 2005, ALGA has implemented the following initiatives of the Australian Local Government Population Ageing Action Plan:

ALGA's Planning for an Ageing Community website

Councillors, practitioners, researchers and members of the general community can use the website as their first port of call for information from local, regional, national and international sources.

AGEINGforum

AGEINGforum is an online interactive discussion list to help keep all those in local government in contact with each other and informed about ageing issues.

Connecting with Seniors project

The project showcases local councils that have responded to the diversity of seniors in the development or delivery of policies or programs.

Australia's ageing population: Economic implications for local government

ALGA's response to the Productivity Commission's research study examining the productivity, labour supply and fiscal implications of likely demographic trends over the next 40 years for all levels of government.

National General Assembly of Local Government workshop

The ageing symposium showcased a range of practical ideas and initiatives to assist councils plan for the future housing and residential care needs of ageing communities.

Ageing Awareness and Action Survey

The survey, undertaken during December 2004 to February 2005, gauged the awareness of population ageing within local government and assessed the level of local government action on population ageing issues.

Purpose of the paper

The intention of this paper is to assist local government to make further progress in planning for an ageing community. The first section of the paper highlights the main reasons why population ageing is a significant issue for local government. The next section provides an initial framework for understanding seniors and their needs now and into the future. The final section of the paper discusses the importance of timely action by local government in response to population ageing. The paper also provides key resources and a self assessment checklist to assist local councils to plan for an ageing community.

Population ageing: why it matters now for local government

Australia's population is ageing and the evidence for this demographic change is undeniable. Falls in fertility, increasing life expectancy and the effect of the 'baby boomer' generation moving through older age groups, has contributed to an increase in the number and proportion of people aged over 65 years. This trend will grow over the coming decades, to such an extent, that the proportion of people aged 65 years and over will grow from the current 13%, to one quarter of the population by 2051.

But why does it matter now for local government? This section of paper establishes a context for local government involvement in population ageing issues and why local government is in unique position to respond to the needs of the growing older population.

Seniors are a significant and growing part of local communities

As Australia's population ages, regional populations will also age, some more than others. As shown in Table 1, the proportion of the population aged 65 and over (seniors) has increased substantially in all regions over the last 20 years. In 2001, the highest concentrations of seniors were in non-urban and urban costal regions and metropolitan inner suburbs. This was closely followed by both inland rural and urban regions. Population ageing was less evident in metropolitan outer suburbs and both remote other and remote urban regions.

Table 1: Population share of over 65 year olds across regions, 1981 and 2001

Region	1981 %	2001 %
Metropolitan inner suburbs	11.6	14.1
Metropolitan outer suburbs	6.2	9.9
Coastal non-urban	11.1	15.4
Coastal urban	10.9	14.5
Inland rural	9.6	13.9
Inland urban	10.0	13.3
Remote other	5.3	6.7
Remote urban	5.0	6.2

Population projections show that older populations will continue to be concentrated in local government areas along the Australian coastline. As Table 2 indicates, coastal regions will experience growth of 210% in the number of seniors between now and 2045. Australia's inland regions will also experience significant growth in the number of seniors with 179.7%.

Table 2: Population share,change, and growth of over 65 year olds across regions, 2001 to 2045

Region	2001 %	2045 %	Change %	Growth %
Metropolitan	12.0	30.1	18.5	129.3
Coastal	15.1	26.8	11.7	210.8
Inland	12.5	30.2	18.1	179.7

Opportunities and challenges

Population ageing presents important opportunities for local government.

Older people offer rich life experience, well-honed skills, knowledge and wisdom. These qualities significantly contribute to the healthAgeing fabric of local communities. Specifically, many older people make a major contribution to local communities by being involved in voluntary work. Population ageing also offers many opportunities for local councils to encourage the development of employment opportunities and enterprise creation, which older people can contribute to and benefit from.

But population ageing will impact on planning and service delivery, spelling real and growing challenges for Australia's 673 local government authorities.

The Productivity Commission, in its research study - Economic implications of an Ageing Australia, concluded that with the delivery of human services now representing 49% of total local government expenditure, local councils are more likely to face budgetary pressures from population ageing than from traditional activities such as road and infrastructure provision and maintenance. The main demands are expected to be: health and aged care, home support services, subsidy of medical services, community transport and a range of cultural and recreation services.

At the same time, local government faces potentially significant demands on revenue. The Productivity Commission report found that:

• there is likely to be an emerging fiscal deficit at the local government level under current policy settings
• local government rate revenue will come under pressure from the increasing proportion of pensioner households
• local government revenue is unlikely to increase at a greater rate than the growth in GDP, and some components such as financial assistance grants will grow at slower rates.

The Productivity Commission also found that much of local government will face increasing pressure relating to the suitability of infrastructure, much of which was constructed without particular consideration for ageing populations.

Low-density urban design, a characteristic of many Australian suburbs is not particularly age-friendly. Examples include:

• some new suburbs do not have adequate footpaths, while older suburbs may have many footpaths in need of maintenance
• concentration of retailing and banking in large shopping malls means it is often harder for older people to shop or access services
• suburban design often assumes ready access to a car and thus public transport and alternative transport options are limited
• parks and public places are not always easily accessible for older people.

Planning and development of a wide range of facilities can have a significant impact on the quality of life of seniors and can influence the way they enjoy and participate in their local community. The development of age-friendly infrastructure will be important to help older people remain active and independent. The planning, design and construction of environments for older people, in both the public and private domain, will need to be considered at all stages of the planning process.

Collective responsibility

The change in demographics will require a proactive and innovative approach to population ageing that is responsive to the needs and aspirations of all Australians.

The Australian Government has developed the National Strategy for an Ageing Australia which provides a framework for responding to the opportunities and challenges of population ageing. The National Strategy concluded that the implications of population ageing affect more than just aged care services and that an effective response to population ageing requires a whole-of-government approach, including leadership by local government.

Local government is uniquely positioned to have a positive impact on the growing older population. Local government:

• has an intimate knowledge of the local community and the diversity of older people
• ensures the physical, healthAgeing and economic environment of the local community is conducive to the overall wellbeing of older people
• provides services and programs that are flexible and locally appropriate to the needs of older people
• enables community participation in local decision-making and supports the development of community networks
• is a strong advocate on behalf of the local community with other government and non-government organisations.

These community-focused roles clearly entrench local government's relationship with older people in the community and place it in a unique position to recognise, understand and respond to the needs of the growing older population.

The next step: moving from awareness to understanding

Local councils throughout Australia have demonstrated a strong interest in the ageing of the Australian population. As highlighted in ALGA's Ageing Awareness and Action Survey Report, there is a high level of awareness that Australia's population is ageing and over half of all respondents considered themselves either very well informed or well informed about population ageing issues.

But who are we planning for? This section of the document acts as a starting point for understanding seniors and their needs now and into the future. This discussion is not exhaustive and consideration should also be given to other options for understanding the growing older population.

Understanding the diversity of seniors

An important dimension of the growing older population is the diversity of needs, interests and backgrounds. Older people are individuals and their experience of ageing will be influenced by a range of inter-related factors such as gender, lifestyle, location, socio-economic circumstances, cultural backgrounds, education level and general health. It is vital that local government is aware of the diversity of seniors in its local community. Without knowledge of the socio-economic make-up of seniors it is difficult to understand the issues affecting seniors or how best to respond to ageing communities now and into the future.

The changing trends of Australia's ageing population

Some key factors to remember are:

Only a small proportion of seniors live in residential aged care

Most people when they become older continue living independently in their own homes. In 1999, the ABS projected that by June 2001 only 8% of people aged 65 years and over were estimated to reside in non-private dwellings, including residential aged care. However, the majority of those residing in non-private dwellings, were aged 75 years and over.

The diversity of Australia's senior population is increasing

The older overseas-born population has increased rapidly in recent years and is projected to grow more rapidly through the coming decades. In 2000, there were 768,900 older Australians who were born overseas. This population is expected to grow to just over one million by 2011 and almost 1.5 million by 2026.

Older people live in rural and remote communities

In 2000, an estimated 30% (717,200) of people aged 65 years and over were located in rural and remote communities. In comparison, 28% of the total population live in these communities.

Baby boomers are wealthier than previous generations

The baby boomer generation is wealthier than were previous generations of retirees. Those aged 55 years and over already own 39% of the nation's household wealth and account for 25% of all disposable income.

Seniors are contributing more hours

Once retired from formal work, many seniors continue to contribute actively to their community through voluntary work. While contributing 12% to the total number of volunteers, seniors contributed 17% of the total hours worked.

Australia's seniors are living longer and healthier lives

People are living longer and the proportion of older people in the population is increasing. Significant gains over the last century have led to a life expectancy at birth of 81.9 years for females and 76.5 years for males.

Understanding the needs of seniors

Today, councils undertake a broad range of services to meet the needs of their seniors' population. Key service initiatives include library services, home and community care, volunteering services, community grants, recreation and leisure services, carers support and seniors' centres.

But, as the proportion of older people increases over the coming decades the needs of the population will change. Utilisation patterns and preferences will evolve accordingly and there will be increased expectation that local government will accommodate those changing needs. Already, there are a number of emerging service areas, including health and wellbeing programs, continuing education and housing.

It is important for local councils to understand the needs of seniors now and into the future. A common starting point is to compile a register of local council services and programs (also incorporating non-council provided services) and identify gaps and relevance to the next generation of seniors.

Involving seniors and seniors' organisations

The benefits for local councils to involve seniors in decision making processes are to:

• determine the needs and priorities of seniors
• support healthAgeing links and partnerships
• monitor and evaluate the effectiveness of existing programs and services
• inform seniors and seniors' groups about council policies, programs and services
• identify groups which are not using programs and services and understand the reasons for non-use
• identify possible solutions to issues which are of concern to seniors
• assist in formulating and reviewing of council strategies and policies.

Resources

• Ageing: myth and reality (2002) challenges some of the myths about ageing and old age.
• Population Ageing and the Economy (2001) describes the issues surrounding a projected increase in the supply of mature age workers in the coming decades. There are implications for the 'baby boomer' cohort and in the market place for goods and services.
• Older Australia at a Glance (2002) provides insights into the older population of Australia.
• State of the Regions report (2003-04) assesses the impact of ageing, population and demographic change on Australian regions and local government authorities.
• Local government consultation and engagement resource website provides local councils with the information, tools and support to engage communities in local decision-making processes. Victorian Local Governance Association website

Statistics

• Population Projections, Australia, 2002 to 2101 (Cat. no. 3222.0) presents population projections for the states, territories and capital cities.
• Australian Social Trends (cat. no. 4102.0) provides a range of articles on aspects of ageing.
• Mature Age Statistical Profiles - (cat. no. 4905.0.55.001) have been produced to provide an insight into the characteristics of mature age persons.

Local government action: the need to plan now

Population ageing is not a 'crisis', but rather a gradual change to Australia's population structure that will lead to new opportunities and new challenges for local councils and local communities. However, the implications of an ageing population for local government cannot be ignored as it is only a few years before the impacts begin to take affect. By considering this issue now, local councils could possibly minimise the negative impacts of population ageing on local communities and maximise the opportunities it presents.

Has your council started to plan for an ageing community? This section of the paper offers an initial approach to assist local councils to begin to plan for an ageing population albeit against a background of competing priorities and continuing revenue constraints. It is not intended that this approach replace expertise and other valuable resources that are required to produce successful outcomes for ageing communities.

Adopting a 'whole-of council' approach

Many council initiatives are identified as senior focused and 'age-friendly' however, without a holistic, integrated approach within council, it is difficult to ensure that seniors in the community are appropriately regarded and supported as the population ages over the coming decades.

The adoption of a 'whole of council' approach (see Figure 1), as espoused through Integrated Local Area Planning (ILAP), can encourage better integration and co-ordination of planning efforts both within and between governments and maximise available resources and expertise through partnerships and improved cooperation. This will lead to better services and facilities for ageing communities.

Figure 1: Ageing communities: a whole-of-council approach

 

Principles of ILAP as they relate to seniors

Suggestions on how ILAP principles can be used by local councils in regard to population ageing include:

• devising appropriate responses to distinctive local circumstances and needs
• adopting a holistic view of local communities, and linking related physical, environmental, economic, healthAgeing and cultural issues
• coordinating the development of a shared community vision for seniors and establishing common community goals for seniors
• developing common and integrated operational frameworks between different departments, organisations and spheres of government
• identifying action plans linked to common goals, corporate plans and budget processes
• expanding community involvement in planning and management processes.

Resources

Planning the local government response to ageing and place (2004) examines population ageing and its potential impact on local government. The publication includes a framework for assessing the healthAgeing, environmental and economic impacts of ageing for councils. Local Government and Shires Associations of NSW

A guide to integrated local area planning (1993) helps councils implement the ILAP process in their local areas. ALGA website: Publications

An older Australia: Identifying areas for local government action (2004) acts as a starting point for discussion through the identification of the key opportunities and challenges that require a local government response. ALGA website

LGA population ageing self completing diagnostic tool (2003) enables the local government practitioner to assess the relative impact ageing and migration patterns are likely to have on the local economy and local government finances. Available in the 2003 State of the Regions report. Order form

Active Ageing: A Policy Framework (2002) is intended to inform discussion and the formulation of action plans that promote healthy and active ageing. WHO website

Ottawa Charter for Health Promotion (1986) provides a framework for action to achieve health for all. Health promotion action means: developing personal skills, creating supportive environments, strengthening community action, building healthy public policies and reorienting health services. WHO website

Council self assessment checklist

References

• Australian Bureau of Statistics. (2002). Population projections, Australia, 2002-2101. Cat No. 3222.0.
• Australian Institute on Health and Welfare. (2002). Older Australia at a glance 2002 (3rd edition). Australian Institute on Health and Welfare and Department of Health and Ageing, Canberra.
• Australian Local Government Association. (1996). A guide to integrated local area planning. Australian Local Government Association, Canberra.
• Australian Local Government Association. (2004). Australian Local Government population ageing action plan 2004 - 2008. Australian Local Government Association, Canberra.
• Australian Local Government Association. (2005). ALGA's Ageing awareness and action survey report. Australian Local Government Association, Canberra.
• Baum, N and Jackson, N. (2004). Planning the local government response to ageing and place. Local Government and Shires Association of New South Wales.
• Bishop, Julie. (2005). Opening address to the 2nd International Conference on healthy ageing and longevity, 2005, the Hon Julie Bishop MP, 18 March.
• Brundtland, Gro Harlem. (1999). World Health Day - Active ageing makes the difference, World Health Organization, 7 April.
• BRW. (1999). Health care, or wealth care?, Business Review Weekly, Vol.27, June 11.
• Department of Health and Ageing. (1999). Ageing gracefully: On overview of the economic implications of Australia's ageing population profile. Occasional paper No.10. Australian Government, Canberra.
• Department of Health and Ageing. (2001). Population ageing and the economy. Australian Government, Canberra.
• Department of Health and Ageing. (2001). National strategy for an Ageing Australia. Australian Government, Canberra.
• Foresight. (2000). The age shift: Priorities for action. Department of Trade and Industry, London.
• National Economics/ALGA. (2003). State of the Regions report 2003. Australian Local Government Association, Canberra
• Productivity Commission. (2005). Economic implications of an ageing Australia. Productivity Commission, Canberra.
• World Health Organisation. (2002). Active ageing: A policy framework. World Health Organisation, Geneva.

Contact regarding this paper: