Overview of Exit Amounts
The Australian Government is improving the way home care services are delivered to older Australians. These changes are important for a sustainable and quality aged care system that is more consumer driven, market based and less regulated.
Clients are able to choose an approved home care provider that can best meet their goals and needs. They can also change providers (to find a better fit or if they move to another area to live) and funding for their package will follow them.
What is an exit amount?
An exit amount is a charge that a provider can deduct from a client’s unspent home care amount if the client leaves their care. The exit amount can be deducted when a client decides to change providers or if they leave home care. The exit amount is intended to allow providers to recover administrative costs associated with determining and making payment of unspent home care amounts.
It is not mandatory to charge an exit amount. An exit amount can only deducted if the organisation’s maximum exit amount is published on My Aged Care and included in a client’s Home Care Agreement.
Requirements for providers
1. Your maximum exit amount must be published on My Aged Care
If you wish to include an exit amount in your Home Care Agreements you must:
- Provide or update your organisation’s maximum exit amount through the provider portal for publication on My Aged Care
- Keep copies of all exit amount notifications to the department to help manage client enquiries.
2. The exit amount must be disclosed in the Home Care Agreement
If you wish to include an exit amount, the amount must be mutually agreed with the client and included in their Home Care Agreement. This ensures that clients are aware of the maximum exit amount that may be deducted from their unspent home care amount if they change providers or leave home care.
Publishing your exit amount
Your published exit amount on My Aged Care is the maximum exit amount that you can include in any of your client's Home Care Agreements. You can however negotiate lesser amounts for individual clients. Your organisation’s maximum exit amount is published on My Aged Care to ensure clients are aware of the maximum amount they may be asked to agree to when choosing a home care provider.
You are able to notify the Department of your maximum exit amount through the My Aged Care provider portal. The maximum exit amount is set at the organisation level and inherited by all outlets that provide home care package services. When setting the organisation’s maximum exit amount for the first time select ‘enter maximum exit amount (for home care package services)’ which sits below the ‘organisation philosophy’. Your organisation must have an exit amount entered. If you do not plan to charge an exit amount, enter $0.
You can update your organisation’s published exit amount to a lower or higher amount through the provider portal by selecting the ‘edit’ function, which is next to the existing maximum exit amount. Enter your new amount and then select ‘save and apply to all outlets’. Once submitted, you can start disclosing the new maximum exit amount in new or varied Home Care Agreements.
Deducting an exit amount
There is no set ‘cap’ or threshold on the exit amounts. However, the exit amount you may deduct from a client’s unspent home care amount cannot be more than:
- Your published exit amount at the time the Home Care Agreement was entered into; and
- The exit amount included in the client’s Home Care Agreement; and
- The client’s unspent home care amount.
Anton has a level 2 home care package is with a provider that has a published maximum exit amount of $500 on My Aged Care. The provider offers Anton a Home Care Agreement which includes a negotiated exit amount of $250.
When Anton leaves home care, his provider calculates the unspent home care amount as $150 (before the exit amount is applied). The exit amount to be deducted by Anton’s provider is $150 as the exit amount can not be more than:
- The provider’s published maximum exit amount of $500;
- The $250 exit amount in Anton’s Home Care Agreement; or
- Anton’s unspent home care amount of $150.
The table below provides further examples of the maximum exit amount that can be deducted for other scenarios.
|Anton (as above)||Client B||Client C|
|Published maximum exit amount (My Aged Care)||$500||$500||$500|
|Negotiated exit amount in a client’s Home Care Agreement||$250||$250||$250|
|Unspent home care amount||$150||$500||$0|
|Exit amount that can be deducted||$150||$250||$0|
Key Points to Remember
- Providers can deduct an exit amount from a client’s unspent home care amount when they cease providing services to the client.
- It is not mandatory to charge an exit amount, however an amount must be published on My Aged Care including if this is $0.
- You can set and update your organisation’s published maximum exit amount through the My Aged Care provider portal.
- The exit amount must be deducted from the unspent home care amount before being transferred to another provider or proportioned betweenrespective parties .
- An exit amounts can only be deducted if the exit amount is identified in the client’s Home Care Agreement and the organisation’s maximum exit amount is published on My Aged Care.
- The exit amount deducted cannot exceed any of the following:
- The exit amount outlined in the client’s Home Care Agreement;
- The published maximum exit amount on My Aged Care at the time the agreement was signed; or
- The client’s unspent home care amount.
- visit the department’s website; or
- subscribe to receive electronic updates; or
- email email@example.com.
- Fact sheet – Unspent Home Care Amounts
- Fact sheet – Changing Providers
- My Aged Care Provider Portal User Guide: Part One – Administrator Functions
This fact sheet provides general guidance to support the Home Care Packages Program. It does not constitute legal advice, nor is it a substitute for responsibilities under the legislative framework.