Aged care – Securing the future for aged care for Australians – better regulating aged care providers

Funding of $6.7 million over five years will be used to regulate changes of ownership of aged care facilities.

Page last updated: 08 May 2007

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Why is this important?

  • Like any other company, age care companies can be sold and we need to ensure that the owners are suitable in terms of caring for older Australians appropriately.
  • The Australian Government will therefore provide additional funding to develop new regulatory arrangements that require prior approval for sales of any aged care companies that receive Government payments, and will implement checks of the key personnel who run those companies. Current arrangements have allowed some providers to avoid this scrutiny.

Who will benefit?

  • Aged care residents and their loved ones will benefit from the added security of knowing that if age care companies change hands, the new owners will have been checked by the Government.
  • Providers of aged care services will also benefit because the regulation will ensure that all providers that are funded by the Australian Government will be subject to the same scrutiny.

What funding is the Government committing to the initiative?

  • The Government has committed $6.7 million over five years. The funding will be used to regulate changes of ownership of approved providers. It will also enable the Government to develop and implement a risk management system to identify and rectify any risks to the quality of care that could be posed by changes in the key people working for an approved provider. There are approximately 1,800 approved providers in Australia.

What have we done in the past?

  • The Government currently regulates approved aged care providers and their key personnel. This measure extends the regulations to cover changes to the owners of approved providers.
  • The Australian Government announced in the 2004-05 Budget that it would provide an additional $2.2 billion over five years for aged care. Since then the Government has announced the provision of a further $1.6 billion over five years as part of the new aged care funding package called Securing the Future of Aged Care for Australians.

When will the initiative conclude?

  • This initiative is an ongoing measure.

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