The Aged Care Quality and Safety Commission’s proposal to make residential aged care providers operating independent living units (ILUs) and retirement villages retain 10% of ILU and retirement village refundable amounts as liquid funds from 1 July this year, has been reduced to 2%.
The Weekly SOURCE understands a new report with recommendations by the Aged Care Quality and Safety Commission (ACQSC) for Government has been circulated ahead of its public release next month.
Aged care and retirement living accountants StewartBrown recommended to ACQSC that the proposed liquidity ratios be reduced from 35% of quarterly cash expenses and 10% of quarterly refundable deposit liabilities to 25% for quarterly cash expenses, 5% for RAD liabilities, and 2% for ILU liabilities.
In its submission to Liz Hefren-Webb, the Aged Care Quality and Safety Commissioner, the Retirement Living Council made four recommendations including excluding retirement living operators from the liquidity ratios, as had previously been the case. Ageing Australia also sought to have ILU liabilities excluded in its submission.
"While 2% is better than 10%, it is still not zero per cent," Retirement Living Council Executive Director Daniel Gannon told The Weekly SOURCE.
"Many operators will be relieved at where the ratio has landed, but public policy-making didn't need to detour into this space - especially given the risk it placed on future investment and supply.
"These new changes won't cripple industry, but the sloppy process has impacted confidence. Given there are just 35 days until 1 July 2025 Aged Care Act deadline, the Commission must publicly release its determination as soon as possible."
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