Now called the Six Month Rule by the Property Council, from July 1 2014 village operators face the challenge of residents moving into high care facilities potentially requiring a bond (now known as a RAD - or a Daily Accommodation Payment). It will have to be paid within six months of entry to the care facility. This presents a major financial challenge to operators give the village unit has not sold and settled. (The standard transaction cycle for a fast sale on settlement is four months).
On behalf of member village operators, the Property Council has commissioned consultants Grant Thornton consultants to assess the short and long term financial implications of this change and possible alternatives. For more information members should contact Daniella Stutt, Policy Advisor on 03 9650 8300 or dstutt@propertyoz.com.au.
Opinion
RIP: We are seeing the death of the family-run aged care operator
It feels like I am writing an obituary to family-run aged care facilities. Once the backbone of the sector, multi-generation operators are now selling out at a pace not seen before. The sell-off is accelerating, with three landmark deals in just two...
