Residential care improvements
The changes to the aged care system that started on 1 July 2013 aimed to ensure the system remains sustainable and affordable, while offering choice and flexibility for consumers. These system changes encouraged businesses to invest and grow.
The changes improve fairness and sustainability of the aged care financing arrangements, with strong safeguards implemented to ensure access to care for those who cannot afford to contribute to the cost of their care and accommodation.
Improvements that have been implemented in residential care:
- A new means test (income and assets) in residential care to help determine a person’s fair contribution, if any, to their care and accommodation. New income test arrangements also apply to home care.
- Greater choice and flexibility for how they pay for accommodation and services, with 28 days to decide how they would like to pay.
- Changes to residential care from 1 July 2014
- Financial changes to residential care from 1 July 2014
- Transparent accommodation prices and services, with all residential aged care providers required to publish the maximum amount they charge for accommodation and extra services.
- New capping arrangements help make the system more affordable overall for individuals.
- Establishment of the Aged Care Pricing Commissioner, an independent, statutory office holder appointed under the Aged Care Act 1997.
- Better support to build more residential care facilities, and enhanced quality and amenity of accommodation for residents.
- Removal of the high care low care distinction, resulting in flexible and more transparent arrangements in permanent residential aged care, reducing red tape for consumers and providers without compromising levels of care provided to residents.
- Implementation of the Transitional Business Advisory Service to assist residential aged care providers in relation to the accommodation payment changes.
- Residential care - higher accommodation supplement questions and answers
- Residential care and home care Frequently Asked Questions
- Removal of Rental income exemption
- Charter of care recipients’ rights and responsibilities – residential care