In the mid-2016 the major listed aged care operators introduced a new daily fee, commonly referred to as a capital refurbishment fee, and averaging $15 a day charge to residents.

By September 2016 the Department of Health issued a notice that the fee did not comply with aged care funding regulations and it was understood all operators ceased charging the fee.

Regis Healthcare has now revealed that it continued to charge the fee, naming it as an “Asset Replacement Charge“. Regis has been in discussion with the Department arguing that the fee is within the Aged Care Act 1997, but says that it has not had a satisfactory result and so it is going to the courts to get a ruling.

Regis has also announced to the financial markets that it will make a provision in its accounts equal to the money collected from the fee, in effect reducing their profit in the event of a negative Court ruling.