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Aged care reform - ministerial announcement

7 February 2013

Aged care reform - ministerial announcement

Federal Minister for Mental Health and Ageing, the Hon. Mark Butler has accepted key recommendations made by the Aged Care Financing Authority that will provide greater consumer protection for aged care residents and increased government funding for the improvement of facilities.

Benefits for residents

From 1 April 2014, aged care providers will be obliged to publish their accommodation prices (to be charged from 1 July 2014 onwards) on the Government's MyAgedCare website and in material given to residents and their families.  From 1 July 2014, providers will also be required to seek government approval for any charges above a prescribed amount.

These changes will be complemented by a new "Choice of Payment Method Period", under which new residents will have 28 days to agree on terms with their accommodation provider regarding modes of payment, whether it be by Daily Accommodation Payment (DAP), Refundable Accommodation Deposit (RAD) or a combination of both.

Benefits for providers

An increase from 1 July 2014 in the maximum accommodation supplement from $32.58 per day to $52.84 per day will also benefit providers, where the provider has built or "significantly refurbished" their facilities from 20 April 2012, drawing from a pool of funding that has grown by more than $480 million.

For further information please contact:

Stuart Lowe | Senior Associate
Mullins Lawyers
t +61 7 3224 0355
f +61 7 3224 0333

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