KPMG Scenario Analysis of Selected Living Longer Living Better Financial Arrangements

Page last updated: 18 September 2015

The federal government established the Aged Care Financing Authority (ACFA) in August 2012 to provide independent advice to the Minister for Mental Health and Ageing (the Minister) on pricing policy as part of the annual review of pricing policy. ACFA is headed by an independent chair and is charged with providing an annual report to the Minister on financing and funding issues in the sector.

KPMG was commissioned by ACFA to develop an annual report on the impact of aged care financing arrangements on access to quality care, sustainability, industry viability and the aged care workforce. This includes:

  • an analysis of the current state of the aged care sector, in terms of revenue movements, cost movements and productivity movements;
  • setting a benchmark and developing a framework for measuring and monitoring the impact of Living Longer Living Better reforms and other industry developments; and
  • providing advice on accommodation payments, additional amenity fees for additional services in the context of the pricing policy, and other matters the Minister refers to the ACFA.

In developing the annual report, KPMG were requested to undertake scenario analysis on the potential impact from selected Living Longer Living Better financial arrangement reforms on residential aged care providers. This interim report presents results from the scenario analysis.

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