The national regulator has extended its contract with Sydney-based actuary and data analysis firm Quantium by another $100,000 for further work on the development of its controversial liquidity ratios.

An Aged Care Quality and Safety Commission (ACQSC) spokesperson told The Weekly SOURCE, Quantium were selected "to support the financial analysis and actuarial modelling needed to develop liquidity measures as part of the new Financial and Prudential Standards to be introduced under the new Aged Care Act. The recent variation supported additional analysis after the latest round of industry consultation on the draft liquidity measures."

The extension takes the total value of Quantium's work with the ACQSC on this issue to $1.4 million. The original contract, awarded in 2023, was $330,000.

The new Liquidity Ratios were first introduced to the sector in February, as part of the ACQSC's Exposure Draft of the Aged Care Financial and Prudential Standards 2025.

Sector consultations on the proposed ratios were "robust", according to Aged Care Quality and Safety Commissioner Liz Hefren-Webb (pictured right). Since then, significant changes have been made, including to the most controversial aspect of the proposal: a requirement for residential aged care operators who also manage independent living units (ILUs) or retirement villages to retain 10% of refundable contributions from those businesses. That ratio has since been revised down to 2%, the Retirement Living Council has confirmed.

In another key revision, Ageing Australia has advised its members they will have the option to "apply a formula to assess liquidity or submit their own liquidity policy and strategy", giving operators greater flexibility than the original proposal.

The ACQSC has not yet confirmed the final form of the liquidity requirements, with a report on the consultations expected shortly.

The Commission did not respond to The Weekly SOURCE’s request to view the analysis conducted by Quantium to date.

View details of the contract here.