New residential aged care arrangements

The new residential aged care arrangement became effective on 1 July 2014 – probably the biggest changes in many years.

Most aged care facilities are just getting their heads around the changes, so a period of confusion can be expected.

However some things are known, for example:

  • The distinction between “High Care” and “Low Care” has been discontinued. The main impact appears to be that there will be one pricing structure with more components means-tested than in the past. In reality, the facilities will find it hard to change the care services they deliver and hence this change may have little day to day impact.
  • Accommodation deposits will be required for all facilities – previously not required for high-care facilities other than those providing “extra services”. Accommodation deposits will be means-tested. They are repayable in full on exit.
  • Existing residents are not affected.

Inevitably it will take a while before residential aged care providers fully understand all the changes, amend their documentation and train their staff.

If you require assistance or additional information on how the above changes may affect you, please contact us.