New limitations

Until recently, it was permissible for aged care providers to charge residents with certain Aged Care Funding Instrument (ACFI) classifications additional service fees for items in Part 3 of Schedule 1 within the Quality of Care Principles 2014 (Cth) (Principles) subject to certain conditions being met.

Today the Australian Government Department of Health and Ageing has released an email update to providers (Your Aged Care Update #21, Issue 21, 4 October 2022) stating that from 1 October 2022 providers can no longer charge additional service fees for providing any items listed in Part 3 of Schedule 1 of the Principles, in any circumstances, as the funding under the Australian National Aged Care Classification (AN-ACC) is paid on the basis that it covers the cost of all care and services specified in Schedule 1. This restriction applies regardless of the resident’s AN-ACC classification.

Further information can be found on this webpage of the Department website, updated on 30 September 2022.

What can I charge additional services fees for?

Subject to a clear agreement between the provider and the resident under the terms of their resident agreement, which has been validly entered into, a provider can still charge an additional service fee for:

1. services the provider is not obliged to provide under the aged care laws (e.g. alcoholic beverages, hairdressing, pay TV)

2. services that are substantially better than the requirements under Schedule 1 of the Principles.

Key takeaway

Aged care providers should, as a matter of priority:

1. review their billing systems to ensure they do not make additional service fee charges which are prohibited as at 1 October 2022; and

2. review and where necessary update the additional service terms of their resident agreements, to ensure they reflect the current laws.

If you need our help updating your resident agreements, or responding to any other aged care law reform changes, call us now on 02 9199 4563 or email info@kinnylegal.com.

 This blog post does not constitute legal advice and should not be relied upon as such. It is a general commentary on matters that may be of interest to you.  Formal legal or other professional advice should be sought before acting or relying on any matter arising from this communication.

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