The Federal Government’s $3.7 billion plan to overhaul and future-proof the aged care sector involves abolishing the $32 a day cap.
From July 1, new residents in aged care will have a 28-day cooling-off period to decide whether they will pay periodically, or upfront. The aim is to ensure they are not disadvantaged by their choice.
Removing the current cap of $32 and introducing one fee structure for all will remove the distinction between high and low care. The changes will allow a home to increase the daily fee to $50, the tier-one fee level. Tier two will be a charge between $50 and $85 a day (down from Aged Care Minister Mark Butler’s original recommendation). The provider will be required to justify the level of the fee against government guidelines.
The changes will affect 60 percent of residents with means. The fee for those without means will be met by the government at $32 a day, increasing to $52 if an operator refurbishes or expands the facility.
“Together, these changes will drive strong investment and renewal in a sector that will face huge increases in demand in years to come,” Mr Butler said.
