1 July 2014 Aged Care Reform Changes

Page last updated: 13 April 2018

This information was distributed on July 1, 2014

Dear aged care stakeholder

From today, 1 July 2014, a number of key changes to how aged care services are paid for and delivered take effect. These changes will help build a sustainable aged care system now and into the future.

More information on the changes to Home Care Packages and Residential Care is available on myagedcare.gov.au.

This email provides information on:

  • New subsidy and supplement rates;
  • New Schedule of Fees and Charges for Residential and Home Care from 1 July 2014;
  • Updated Schedule of Resident Fees and Charges for Continuing Residents;
  • Changes being implemented by the Department of Human Services; and
  • Additional information

Aged Care Rates – From 1 July 2014

New Australian Government Subsidies and Supplement Rates – 1 July 2014

A full list of Australian Government Subsidies and Supplements effective from 1 July 2014 is now available.

Schedule of Fees and Charges for Residential and Home Care from 1 July 2014

This schedule sets out the new fees, caps and thresholds which apply to new residents entering care or consumers commencing a Home Care package from 1 July 2014.

The Schedule of Fees and Charges for Residential and Home Care from 1 July 2014

Schedule of Resident Fees and Charges – Pre 1 July 2014 residents

The Schedule of Resident Fees and Charges for residents who first entered care before 1 July 2014 has been updated and will take effect from 1 July 2014. 

The quarterly review of income tested fees has been conducted with an effective date of 1 July 2014. Residents and providers will receive letters advising where there is a change to a resident’s income tested fee or where a refund may be due. Mail addressed to residents should not be returned to the Department unless the resident no longer lives at the home.

Providers are advised that any refunds that may appear on your monthly claim statement from the Department of Human Services Medicare Australia should not be paid to residents or their estate until you have received written advice confirming that a refund may be due.

The Schedule of Resident Fees and Charges for residents who first entered care before 1 July 2014 is now available on the Department of Social Services website.

Changes being implemented by the Department of Human Services

There are new forms and letters for Home Care and Residential Care providers. These are available from the Department of Human Services aged care forms page.

More information for providers is available from the Department of Human Services.

For consumers, information about the processes of income testing in home care and means testing in residential care is also available from the My Aged Care website aged care income and assets assessments pages.

Additional information

Maximum Permissible Interest Rate and Base Interest Rate

  • The Maximum Permissible Interest Rate (MPIR) will increase from 6.63% to 6.69% for the period 1 July 2014 to 30 September 2014. The Base Interest Rate remains unchanged at 4%. Past interest rates are available.
  • The new 5 Steps to Enter an Aged Care Home document will be available soon.
  • The Residential Care Manual has been flagged to reflect new changes. It will be replaced with the Guide to Aged Care Law in the coming weeks.