Aged Care Financing Authority
The Aged Care Financing Authority (ACFA) provides independent advice to the government on funding and financing issues, informed by consultation with consumers, and the aged care and finance sectors.
ACFA roles and responsibilities
The committee's roles and responsibilities are set out in the ACFA Committee Principles.
- Mr Mike Callaghan (Chairman)
- Mr Nicolas Mersiades (Deputy Chair)
Other members are:
- Mr Ian Yates AM
- Mr Gary Barnier
- Dr Mike Rungie
- Ms Louise Biti
- Ms Susan Emerson
ACFA Update on funding and financing issues in the residential aged care industry
Following the release of the Aged Care Financing Authority’s (ACFA) 2018 Annual Report on the Funding and Financing of the Aged Care Sector, the Minister for Senior Australians and Aged Care, the Hon Ken Wyatt AM MP, asked that ACFA provide an update of its assessment of the funding and financing issues currently impacting on the residential aged care sector.
The report was provided to the Minister for Senior Australians and Aged Care on 8 October 2018.
ACFA Work Program
ACFA’s work program is set by a combination of legislative requirements and Ministerial direction.
ACFA Annual reports
The Aged Care Financing Authority (ACFA) presented its 2018 Report on Funding and Financing of the Aged Care Sector to the Government on 31 July 2018. The report examines developments, issues and challenges affecting the sector, and provides a range of statistics and analysis of the provision of aged care in Australia. This report includes analysis of financial data collected from the 2016-17 year, and also examines issues and challenges emerging since 1 July 2017.
If you would like a hard copy of the short form or full report or have any enquiries please email the ACFA Secretariat.
ACFA Respite Care Project
ACFA has completed the report on the increasing use of respite care and the appropriateness of the current arrangements, including funding structures, for providers and consumers. The report was submitted to the Minister for Senior Australians and Aged Care and Minister for Indigenous Health, the Hon Ken Wyatt AM, MP, on 31 October 2018.
ACFA Consumer Finance Project
The Minister for Aged Care and Minister for Indigenous Health, the Hon Ken Wyatt AM, MP, has tasked the Aged Care Financing Authority (ACFA) with providing a report on how consumers finance their aged care costs, including advice on whether there is scope to improve consumer support in making these important decisions.
As part of this project, targeted consultations were conducted in all states and territories with a range of stakeholders across the aged care and financial services sectors during May and early June 2018.
Consumer surveys will occur in July 2018.
The reporting date for this project is 30 November 2018.
Report to inform the 2016-17 review of amendments to the Aged Care Act 1997
As part of significant changes to aged care announced in 2012, a requirement for an independent review of the reforms was included in the Aged Care (Living Longer Living Better) Act 2013. The Review is being led by Mr David Tune AO, PSM.
In November 2015, the former Minister for Health and Aged Care asked ACFA to provide advice on funding, financing and pricing issues affecting the matters specified in the Review’s terms of reference. In particular, ACFA was asked to focus on such issues as they relate to means testing, fees, accommodation prices, access and workforce.
The report was delivered to government on 11 May 2017.
Report on the Bond Guarantee Scheme and potential alternative arrangements
ACFA undertook a study examining the Bond Guarantee Scheme and alternative arrangements. The study concluded that in addition to the existing Scheme, there were two alternative arrangements that could effectively support a guarantee of the return of a resident’s lump sum accommodation payment:
- retaining the existing Scheme, but then automatically triggering a retrospective levy on all providers to repay the Scheme’s costs
- creating a guarantee fund pool through a levy on all providers (pooled funds would grow and be used to pay the Scheme’s costs).
ACFA identified insurance based alternative options as well as an industry arranged bank guarantee option, but assessed them as unlikely to be as effective. ACFA then developed and distributed a discussion paper before consulting with peak bodies as well as the sector more widely.
In principle ACFA agreed that the Scheme’s beneficiaries should contribute to the costs of the guarantee, where the benefits of doing so outweighed the costs (this should be the case whether the existing Scheme is retained, or another model is implemented).
The report was delivered to government on 1 May 2017 and will inform the Aged Care Legislated Review (2016-17).
Report on the Base Interest Rate Project
ACFA was asked by the government to undertake a short study that would examine the application of the Base Interest Rate (BIR) to the refund of lump sum accommodation payments including:
- an assessment of options; and
- implications of any changes.
The report was delivered to Government on 30 June 2017.
Report on access to care for supported residents
The Aged Care Financing Authority (ACFA) was asked by government to provide advice on cost neutral mechanisms to ensure access to care for supported residents. This included reviewing the efficiency, effectiveness and appropriate level of the:
- supported resident ratio for each aged care planning region
- 25 per cent discount applied to the maximum accommodation supplement amount where a service does not provide more than 40 per cent of its eligible care recipient days to supported residents.
ACFA’s work on this project involved public consultations, with an initial discussion paper being released in May 2015 seeking general submissions. This was followed by a second discussion paper in September 2016 seeking comments on ACFA’s proposed recommendations on supported residents.
ACFA delivered its report on access to care for supported residents to government on 11 January 2017.
ACFA’s recommendations in their report to government were to:
- remove the regional supported resident ratio
- amend the administrative application of the 40 per cent supported resident ratio so that it would apply over the course of a month rather than on a daily basis.
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