Indexation rates for Residential Aged Care and Home Care Packages from 20 March 2015 and changes to the Maximum Permissible Interest Rate (MPIR) from 1 April 2015

Page last updated: 20 March 2015

This information was distributed on 19 March 2015

Dear Aged Care Stakeholder,

Residential and home care fees and charges and supplements have been increased from 20 March 2015 in line with changes to the basic age pension and CPI.  The Maximum Permissible Interest Rate will change from 1 April 2015.

Australian Government Residential Aged Care and Home Care Supplements

The Australian Government Residential Aged Care Supplements (Accommodation and Hotel related) have been indexed effective from 20 March 2015.

This Schedule is available on the Australian Government subsidies and supplements page.

Schedule of Fees and Charges for Residential and Home care – for care recipients that commenced care on or after 1 July 2014

The Schedule of Fees and Charges for Residential and Home Care – for care recipients that commenced care on or after 1 July 2014 has been updated and will take effect from 20 March 2015.

The associated Department of Human Services quarterly review of fees and charges will be conducted with an effective date of 20 March 2015.  Care recipients and providers will shortly receive letters advising where there is a change to a care recipient’s fees and charges or where a refund may be due.

The Schedule is available on the Schedule of Resident Fees and Charges page.

Schedule of Resident Fees and Charges for residents in care on 30 June 2014

The Schedule of Resident Fees and Charges for pre 1 July 2014 Residents has been updated and will take effect from 20 March 2015.

The quarterly Department of Human Services review of income tested fees will be conducted with an effective date of 20 March 2015.  Residents and providers will shortly receive letters advising where there is a change to a resident’s income tested fee or where a refund may be due.

The Schedule is available on the Schedule of Resident Fees and Charges page.

Consumer Contribution in Home Care Packages for packages that commenced before 1 July 2014

A consumer who commenced a Home Care Package can be charged a basic daily fee of 17.5% of the basic rate of the single pension.  From 20 March 2015 this rate is $9.77 per day.

Change to MPIR from 1 April 2015

The Maximum Permissible Interest Rate (MPIR) applicable to ‘refund periods’ for refundable deposit balances and accommodation bond balances will decrease from 6.75% to 6.36% for the period of 1 April 2015 to 30 June 2015.

The Base Interest Rate has changed from 4% to 3.75%.

Current and past refundable deposit balance and accommodation bond balance refund interest rates can be accessed at the Department of Social Services website.

If you have any queries, please contact My Aged Care on 1800 200 422.

Reminder to update published accommodation prices

Providers are reminded that they must update their published accommodation prices to reflect the new MPIR from 1 April 2015.  The daily payment amounts published on the My Aged Care website will be automatically updated on 1 April 2015 using the existing published refundable deposit amounts.  Providers should update the accommodation prices published on their own website and in relevant written materials accordingly.

Kind regards

Aged Care and Population Ageing Communications
Department of Social Services