The Department issued the statement last week after Aged and Community Services (ACSA) lobbied them following the Federal Court’s ruling against Regis’ ‘Asset Replacement Charge’ in March this year.
ACSA CEO Pat Sparrow says the decision left a lot of members “very unclear” about what they can charge.
The Department had warned providers back in September 2016 that ‘asset replacement’ and ‘capital refurbishment’ type fees were not supported under the Aged Care Act.
After the Federal Court decision was handed down, Regis, Japara and several other providers who charged similar fees voluntarily refunded residents – with accrued interest – resulting in a significant hit to profits.
We can see why providers are unclear – the page supplied by the Department says it is “a provider’s responsibility to ensure that any fees they charge to residents are consistent with aged care legislation”, adding “This information does not constitute legal advice. Approved providers should seek their own independent advice.”
Ms Sparrow says the Department will be working with the industry on “more fully understanding the interplay between additional services and the specified care and services schedule.”
A welcome development.
