Home > For Health Professionals > Aged care > Publications

Publications

Changes to basic daily fees for Residential Aged Care

PDF printable version of Changes to basic daily fees for Residential Aged Care (PDF 56 KB)

Dear Aged Care Providers,

Please find attached information regarding the Household Assistance Package.

Dear Service Provider

Changes to basic daily fees for Residential Aged Care

From 1 July 2012, the maximum basic daily fee that aged care providers may charge residents will increase by 1 percent of the basic Age Pension amount. This increased fee aims to share additional payments that are being made to pensioners and Commonwealth Seniors Health Card holders through the Household Assistance Package payments. It recognises that many of the everyday expenses for residents are met by aged care providers.

The Household Assistance Package is part of the Australian Government’s Plan for a Clean Energy Future. In June, pensioners and holders of a Commonwealth Seniors Health Card who receive a Seniors Supplement will receive an initial Household Assistance Package payment as an adjustment to last until next March when this extra assistance will be added to regular government payments.

From 1 July 2012, the standard resident contribution will increase to 85 per cent of the basic Age Pension amount. However, there are three classes of residents for whom the maximum basic daily fee is not currently 84 per cent of the basic Age Pension amount, therefore:

• For protected residents, the standard resident contribution will increase to 77.5 per cent of the basic Age Pension amount;
• For non-standard residents (certain pre-2008 reform residents), the standard resident contribution will increase to 96.5 per cent of the basic Age Pension amount;
• For phased residents, the applicable percentage rate has been determined for the various periods required and is detailed below:
  • for the period 1 July 2012 to 19 September 2012 - 83%
  • for the period 20 September 2012 to 19 March 2013 – 84%
  • from 20 March 2013 the phased rate will be equivalent to the standard rate.

Non-pensioner residents who do not hold a Commonwealth Seniors Health Card, as at 1 July 2012, will not be eligible for the Household Assistance Package payments. To avoid disadvantaging those residents, a new aged care supplement will be payable to providers on their behalf. To receive this supplement, eligible aged care providers will be required to maintain the basic daily fee payable for these residents at their existing percentage rate.

The Department of Human Services (DHS) will write to approved providers separately where it is identified that residents in their care are eligible for this payment to be made on their behalf to the provider. Please ensure that if you receive an individual letter outlining eligible residents that you consider it carefully and return the signed form to DHS for prompt payment.

If you have further questions you may call the Aged Care Processing Claims and Technical Support hotline on 1800 195 206.

Yours sincerely

Authorised for electronic transmission

Keith Tracey-Patte
Assistant Secretary
Policy and Evaluation Branch

28 May 2012