Better health and ageing for all Australians

Eligibility for funding

Viability Supplement - current arrangements

Some aged care services in rural and remote areas receive the viability supplement in recognition of the higher costs of providing care in those regions.

In this section:

Viability Supplement - current arrangements

The viability supplement aims to improve the capacity of small, rural aged care services to offer quality care to residents. Providers do not need to apply for the viability supplement. The supplement is paid automatically, every month, to eligible providers.

Services with extra service status are not eligible for the viability supplement.

In addition to the current viability supplement scheme, which is known as the 2005 scheme, there are two previous schemes—the 2001 scheme and the 1997 scheme.

The amount paid under the current viability supplement increased from 1 January 2010 with an expansion as part of the 2011-12 budget.

Services will continue to be paid under previous schemes, unless they would receive an increase in the supplement under the 2005 scheme.

Viability supplement - current 2005 scheme

The amount of viability supplement paid to eligible services through the 2005 viability supplement scheme. Legislative reference – Aged Care (Residential care subsidy-amount of viability supplement) Determination 2009 (No. 2), s 44-29(8) Aged Care Act 1997.

Payment of the viability supplement is made through the aged care payment system.

Funding for the current 2005 scheme is based on points scored in relation to the three criteria below.

Viability supplement—previous schemes

All services that receive viability funding under the 1997 or 2001 viability funding arrangements will continue to receive at least their level of viability funding received under the previous arrangements until they close, relocate or cease to be eligible under the previous arrangements.

Where a service’s score under the 2005 scheme’s criteria is such that the rate of funding under the 2005 arrangements is greater than the rate of funding under the previous arrangements, the service will receive its entitlement under the 2005 arrangements.

If adjacent services combine and at least one of these facilities was receiving viability supplement under a previous scheme, the combined service will be reassessed for the viability supplement under the 2005 viability arrangements.
Top of page

Viability Supplement – Additional Support for Aged Care Homes Specialising in Care for Indigenous Australians and the Homeless

As part of the 2011-12 Budget, measures were introduced to expand existing funding under the Viability Supplement to provide additional support to:
  • aged care homes in very remote to moderately accessible locations that target low care;
  • eligible aged care homes that provide specialist aged care services to Indigenous Australians; and
  • eligible aged care homes that provide specialist aged care services to people with a history of (or who may be at severe risk of) homelessness.
This site provides information on the arrangements for aged care providers seeking to register for the extension of the viability supplement in relation to specialist services for Indigenous Australians and Australians with a history of homelessness.

The extension of the viability supplement to services that target low level residential care in very remote to moderately accessible locations will automatically be paid by the Department of Human Services (DHS), formerly known as Medicare Australia. Approved providers will not need to notify DHS of eligibility in this instance.

As part of the Living Longer Living Better aged care reform package, this expansion became and ongoing part of the Viability Supplement with the application process extended.

Who is eligible to register?

Eligible providers are those funded by the Australian Government with aged care homes specialising in caring for homeless and/or Indigenous Australians. Funding is only available to residential aged care providers that receive subsidies for care recipients based on Aged Care Funding Instrument (ACFI) appraisals. Funding is not available to community care and other services supported through the flexible care provisions of the Aged Care Act 1997.

How do providers register their eligibility?

To qualify for the expansion component of the Viability Supplement, an approved provider’s service must register with the Department of Health and Ageing (DoHA). To be considered for registration, providers should send an email to Viability.Supplement.expansion@health.gov.au.

The email should comment briefly on:
  • a history and track record in providing access for people who are homeless or at risk of homelessness and/or Indigenous Australians;
  • a continuing commitment to target and predominantly focus on the needs of one or both of these groups;
  • the capacity to provide high quality care that meets the specific needs of these groups;
  • the capacity to promote access to the broad range of services relevant to the needs of these groups; and
  • the capacity to link with relevant local services and communities, including agencies which may provide sources of client referrals.
Email nominations may be received when the home becomes eligible for the expansion.

Upon request, supporting evidence must be made available to DoHA.
Top of page

Appraisal of care recipients

It is important to note that while registration is necessary to receive payment, it does not automatically result in additional payments. To be eligible for the expansion points, providers must also have appraised more than 50 per cent of care recipients as meeting the criteria for homelessness and/or Indigenous Australians.

Approved providers have 2 months after the day a resident enters the service to complete the appraisal procedures and notify the Department of Human Services (DHS) of the outcome of the appraisal, but should not submit the notification until at least 28 days after the resident entered the service. This is in line with requirements under the Aged Care Funding Instrument (ACFI). Where late submission of appraisal outcomes are received, any additional amount of viability supplement will be payable only from the day the notification is received by DHS.

Appraisal Tools are provided below for use when appraising residents. Appraisals must be completed 2 months after the day a resident enters the service for funding to commence from date of entry.

More information will be provided to eligible providers, upon successful registration, on the process to provide notification to DHS on eligible care recipients for inclusion towards the 50 per cent requirement quota.

Checklist A - Homelessness Related Care Needs

Checklist B - Indigenous Australian Related Care Needs

How are payments calculated?

Payments under the existing Viability Supplement Scheme are determined through a points system, with points being awarded to providers based on the criteria of:
  1. location/provider type;
  2. occupied places; and
  3. special needs.
Targeting of homelessness and/or Indigenous Australians is now included in the ‘location/provider type’ criterion and attracts a total of 60 points (provided the total under location/provider type does not exceed 65 points). In addition, services that score 60 points for homeless and/or Indigenous Australians will automatically score the maximum of five points under the ‘special needs’ criterion.

Points are calculated for each day of care. To be awarded points for a particular day, more than 50 per cent of care recipients of the service (excluding respite care) must have been appraised as having complex behavioural and/or social needs and:
  • have a history, or be at severe risk, of homelessness; and/or
  • be of Aboriginal or Torres Strait Islander origin.
Further details of criteria and associated points are provided at below.

The amount payable to eligible providers corresponds with total awarded points. Visit the webpage for a list of the Current Viability Supplement rates at www.health.gov.au/internet/main/publishing.nsf/Content/ageing-subs-supp-current.htm

When will payments take effect?

Payment of the viability supplement will automatically be made through the existing aged care payment system. Providers do not need to apply for the supplement based on location/provider type, occupied places and special needs.

The Viability Supplement expansion came into effect on 1 July 2011. Approved Providers need to submit an application as detailed above. Once eligible, from 1 July 2012 an approved provider has 2 months after the day a resident enters the service to complete the appraisal procedures and notify the Department of Human Services (DHS) of the outcome of the appraisal, but should not submit the notification until at least 28 days after the resident entered the service. This is in line with requirements under the Aged Care Funding Instrument (ACFI). Where late submission of appraisal outcomes are received, any additional amount of viability supplement will be payable only from the day the notification is received by DHS

Top of page

Further Information

To contact the Department of Health and Ageing regarding the Viability Supplement, please send an email to Viability.Supplement.expansion@health.gov.au.

Points system

ItemCriterionPoints
1Location/provider type:

The sum of points for each of the following three elements, up to a maximum total of 65:

Location:
  • very remote location
  • remote location
  • moderately accessible location
  • accessible location
  • highly accessible location
  • Targets Homelessness and/or Indigenous people with complex behavioural and social needs1
  • Targets low care needs in above locations (very remote), (remote) or (moderately accessible location)2






65
55
40
30
0
60
15
2Places:
  • less than 20
  • more than 19 but less than 25
  • more than 24 but less than 30
  • more than 29 but less than 35
  • more than 34 but less than 40
  • more than 39 but less than 45


30
25
20
15
10
5
3Special needs:
More than 50% of care recipients are people with special needs (other than people who are people with special needs only because they live in rural or remote area or are financially or socially disadvantaged)3.

5

1. To qualify for this item the aged care provider must:

  • Be registered with the Department as a specialist service targeting Homelessness and/or Indigenous people with complex behavioural and social needs; and
  • Have more than 50% of care recipients who have been appraised as having care needs associated with homelessness against the approved Department of Health and Ageing appraisal tool A “Homelessness: additional special needs” or B “Indigenous Australians: additional special needs”.
2. More than 50% of residents have a Low Care classification level ie one that consists of domain categories other than those mentioned in the definition of high level of residential care.
3. Homes eligible under item 1 - Targets Homelessness and/or Indigenous people with complex behavioural and social needs above will automatically be eligible for 5 points under this category– effectively, eligibility under item 1 - Targets Homelessness and/or Indigenous people with complex behavioural and social needs will confer a total of 65 points.


Location - ARIA Score

The Accessibility/Remoteness Index of Australia (ARIA) is used to assess the remoteness of the location of a home. ARIA is a precise measure of the accessibility of all geographical locations in Australia. It scores each location and, depending on the score, classifies the location into one of five groups: highly accessible, accessible, moderately accessible, remote and very remote.

Visit the webpage for a full list of ARIA scores by State/territory at www.health.gov.au/internet/main/publishing.nsf/Content/ageing-rescare-rescprov-aria.htm

Top of page