The aged care sector has just been handed one of the most consequential regulatory decisions in recent years – and for a small number of providers, it could spell the beginning of the end.

On 3 July, the Aged Care Quality and Safety Commission (ACQSC) confirmed it will not revise its proposed liquidity standards, locking in tougher financial thresholds for residential aged care providers from 1 November under the new Aged Care Act.

Despite industry concerns, providers will need to hold liquid funds equal to 10% of their Refundable Accommodation Deposits (RADs) and 35% of their previous quarter’s operating expenses – a move the Commission says is necessary to “reduce liquidity risk across the sector”.

It’s a clear line in the sand: either you can cover your costs and re