GUM disease is a growing problem among older Australians and funds spent on tackling it would save more taxpayers' money than it would cost.

That's the message from a new report on dental health for the elderly, presented to politicians by dental and ageing organisations yesterday.

The report, done by economic modelling firm Econtech, found 54 per cent of Australians over 65 have gum disease - more than double the rate of younger people (25 per cent).

It said gum disease, also known as periodontal disease, was linked to a range of medical conditions, including heart disease, stroke, peripheral vascular disease and pancreatic cancer.

The cost of poor dental health associated with these conditions has been put at $412million a year.

The report found that if the same entitlements to dental treatment given to veterans were extended to all Australians over 65, it would cost $672million.

However, the report also found it would save $714million by avoiding the need to treat the health consequences of gum disease, creating an overall saving of $42million. Extending dental entitlements in this way would also improve dental health for 860,000 people, the report found.

A less far-reaching option, involving extending veterans' dental benefits to a smaller group - residents of aged care homes and those with Centrelink pension cards - would save $2.3million a year by costing $38 million but saving $40 million.

The report was commissioned by the Australian Dental Industry Association and COTA Over 50s, an alliance of five Councils of the Ageing, and the national organisation ARPA Over 50s.

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