Consultation on funding changes begins
Another feedback round is open on the rules for incoming aged care legislation, this time related to funding arrangements.
The Department of Health and Aged Care is inviting feedback on the funding arrangements for the new Aged Care Act.
This marks Stage 2b of the consultation on the new Aged Care Rules. This stage covers most of Chapter 4 of the new Act and is related to the funding of aged care services.
More topics, including grants and accommodation payments, will be released for feedback later.
Subsidy calculations for older people who entered permanent residential aged care before 1 July are excluded from Stage 2b, with information to be released later. The Grantee Code of Conduct and accommodation payments and contributions, including the new retention amounts for refundable deposits and the indexation applied to a daily accommodation payment are also excluded.
Stage 2a has been re-released so stakeholders can view Chapter 4 holistically, but the contents of the second Stage 2a release have not changed from the original release in November 2024, as feedback is still being analysed and considered.
The Aged Care Rules – Consolidated Draft Rules Relating to Funding: Public Release – Supporting Document outlines in further detail the key changes that the department is seeking feedback on.
No worse off principle
Due to Support at Home replacing the Home Care Packages Program and Short-Term Restorative Care Program from 1 July, the no worse off principle outlines that anyone who received approval for a HCP on or before 12 September 2024 will have a lower individual contribution rate for SaH. Should they move to residential care, they will pay the current means tested care fee rather than the new hoteling contribution or non-clinical contribution.
For individuals in that circumstance, the current lifetime cap of $82,000 will apply to SaH contributions and amounts of income tested care fees paid by the individual previously in home care will count towards the SaH lifetime cap.
Individuals approved for a HCP before the new Act starts will maintain the same level of funding and will retain any unspent funds. If individuals in that circumstance have another assessment that qualifies them for a higher level of funding, they will more to the new SaH classification but will maintain their same contribution rates and unspent funds.
Residential Care
Individuals who have entered mainstream permanent residential care before 1 July will continue to pay their current fees and will not be subject to the new retention amounts for refundable accommocation deposits (RADs), or they will have an indexation applied to their daily accommodation payments (DAPs), except in very specific circumstances.
The new rules also differentiate between contribution classes and accommodation classes. An individual’s contribution class, which includes means testing, subsidy, fees, charges or contributions arrangements, is set for life unless they choose to opt in to the post 1 July arrangements. This applies even if the individual leaves care for any period.
However, an individual’s accommodation class may change if they leave care for more than 28 days. They may also be subject to DAP indexation and RAD or refundable accommodation contribution (RAC) retentions. RAC and daily accommodation contribution (DAC) refer to the means-tested amount an individual of low means individual is required to pay towards their room.
Individuals in care on 1 July who choose to opt in to the new arrangements will not have their accommodation arrangements change until they move to a different approved residential care home and begin a new agreement.
Specialist aged care programs
There are minimal changes to the funding arrangements for individuals accessing services delivered under a specialist aged care program before the new Act commences.
The rules will not contain additional transitional rules for these programs, including:
- Commonwealth Home Support Program
- Transition Care Program
- Multi-Purpose Service Program
- National Aboriginal and Torres Strait Islander Flexible Aged Care Program.
The no worse off principle will be applied to individuals who currently access services through one of the specialist aged care programs and have also received a HCP, or are waiting for an HCP to become available, if they choose to access services through SaH from 1 July or mainstream residential care.
Those on leave from mainstream permanent residential care in the immediate period before the commencement of the new Act, including leave to access TCP services, will also be subject to the no worse off contribution and accommodation arrangements in residential care. If an individual is accessing residential care through MPSP or NATSIFAC and does not have a home care approval as of 12 September 2024, they are considered ineligible for the no worse off principle if they enter mainstream residential care after the new Act starts.
Feedback can be given on Stage 2b via an online survey by 28 February.
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