Indexation rates for Residential Aged Care and Home Care Packages and Maximum Permissible Interest Rate (MPIR) changes
An update of the schedules for residential and home care fees and charges, as well as subsidies and supplements will take effect from 20 March 2020.
*This subscriber announcement was originally published on 21 March, but updated on 23 June to clarify the base interest rate*
An update of the schedules for residential and home care fees and charges, as well as subsidies and supplements will take effect from 20 March 2020. This is in line with changes to the basic age pension and indexation rates.
The Services Australia quarterly review of fees and charges for all care recipients will be effective from 20 March 2020. Care recipients and providers will receive letters letting them know if there is a change to a care recipient’s fees and charges or if a refund may be due.
Schedule of fees and charges
View the updated Schedule of Fees and Charges for:
- Residential and home care recipients who started care on or after 1 July 2014
- Residential and home care recipients who started care before 1 July 2014
Schedule of subsidies and supplements
View the updated Schedule of Subsidies and Supplements.
Decrease to MPIR from 1 April 2020
The MPIR for ‘refund periods’ decreases to 4.89% for the period 1 April to 30 June 2020 for:
- refundable deposit balances and accommodation bond balances
- accommodation prices
The Base Interest Rate will decrease from 3% to 2.5% on 1 June 2020. Note: This rate never came into effect, as the BIR was further reduced to 2.25% from 1 June 2020 on 21 March 2020. For further details, see the 24 June 2020 Newsletter for the Aged Care Sector.
Providers must ensure:
- their published accommodation prices on the My Aged Care website are up to date. If you have any questions contact the My Aged Care service provider and assessor helpline on 1800 836 799
- the accommodation prices published on their own website and in relevant written materials are up to date.