The Q3 FY24 'Board Pack' from aged care advisors Ansell Strategic has predicted that a review of Refundable Accommodation Deposits (RADs), a recommendation of the Aged Care Taskforce, is likely to recommend a continuation of the accommodation funding method.
"The taskforce was asked to look into options to phase out RADs," the 17-page Board Pack report states.
"Recommendation 12 proposes that this be deferred to 2035, with a review of the sector’s capacity to transition to rental models to take place in 2030.
"We expect that this review is likely to recommend a continuation of the current system post 2035 (subject to a major RAD liquidity event)."
Ansell Strategic says they expect the proportion of people paying RADs in the future will decline as interest rates normalise and residents spend shorter periods in residential aged care.
The report, a quarterly update for aged care executives and directors, also provides updates on other regulatory reforms, the latest in compliance, funding and financing, and mergers and acquisitions.
You can download Ansell Strategic's Board Pack here.
Ansell Strategic also publishes quarterly reports for residential aged care managers and has now released an update on the recent mergers and acquisitions in the aged care sector.
You can download the Residential Manager's Bulletin here.
You can download the Deal Tracker report on corporate activity here.
