Update to residential and home care subsidies and supplements from 1 September 2020

Temporary funding increases for residential and home care providers are now in place, to support additional costs and workforce supply pressures resulting from COVID-19.

Date published:
Subscriber announcement
Health sector

On 20 March 2020 the Government announced a temporary increase in funding for residential and home care providers to support additional costs and workforce supply pressures resulting from COVID-19.

The temporary additional daily funding amounts for residential care was administered through an uplift to subsidies paid through the Aged Care Funding Instrument from 1 March 2020 to 31 August 2020. The additional funding for home care was paid through an uplift to the basic care subsidy for the same period.

Therefore, new rates for subsidies and supplements will take effect from  
1 September 2020.

The Government announced today that the temporary 30% increase to the viability supplement in residential and home care and the 30% increase in the residential care homeless supplement that were due to cease on 31 August 2020 will be extended for a further 6 months to 28 February 2021.

Providers should note that the schedule from 1 September 2020 does not reflect the announcement of the continuation of the increased supplements as it has not yet been legislated. However, as usual, providers’ September advances are based on their July payments and once legislation is passed to determine the higher supplements it will be reflected in the schedule from 1 September.

The Government also announced that there would be an additional payment of the lump sum COVID‑19 supplement that was first paid in June this year. Once legislated, providers will receive around $975 per resident in major metropolitan areas and around $1,435 per resident in all other areas based on residents in June. This payment will be provided through Services Australia when providers lodge their September claim at the beginning of October.

Schedule of subsidies and supplements

View the new rates in the updated Schedule of Subsidies and Supplements for aged care.

Providers should also note that updates to the Schedules of Fees and Charges for 20 September 2020 will be advised separately.