What can be included as part of a higher everyday living fee
A HELF can be charged for services (other than accommodation related services) that are of a higher standard than those on the residential care service list (the service list), or are not already required or listed on the service list.
All services must be delivered in accordance with the Aged Care Quality Standards and the Statement of Rights.
Standing and ad hoc HELF agreements
To receive a HELF service a resident must enter into an agreement with their provider.
There are 2 types of HELF agreements.
- A standing (or written) HELF agreement for services that are planned and agreed in advance. This can include ongoing services (such as Wi-Fi), fixed term services (such as a term of yoga classes) or one-off services (such as a haircut). A standing HELF agreement must be in writing.
- Ad-hoc HELF agreements are restricted to situations where a resident requests a single service which hasn’t been planned or agreed in advance. They can only be entered into immediately before, or at the time, a service is to be delivered. These agreements can be made verbally and cover impromptu purchases such as a coffee at an onsite café. Providers are encouraged to offer services under a standing HELF agreement where possible.
Consumer protections
The new HELF arrangements will be supported with a range of new protections for residents.
A HELF must not be agreed or charged before a resident has entered care, and it cannot be used as a condition of entry or to secure a room. The HELF agreement must be separate from the service and accommodation agreement and cannot be entered into before a service agreement has signed.
A HELF agreement must be in place and must outline the cost of each higher or additional service to be delivered, the standards and frequency at which they will be delivered, and how they will be charged.
Individuals should not be asked to pay for a service that they cannot or will not use.
There is a 28-day cooling off period after signing a standing HELF agreement. This means someone can cancel or vary their higher everyday living services within this period without a cancellation fee. The provider needs to be notified of this, but there is no minimum notice period.
After the initial 28-day cooling off period:
- if the resident chooses not to use the service, or is no longer able to use the service, it can be cancelled or varied with 28 days’ notice
- if the resident initiates cancellation, the provider can pass on expenses incurred beyond the 28-day period if they are unavoidable (for example, subscription fees), but for no more than 90 days. Providers must be able to demonstrate this and cannot pass on an amount greater than they have incurred
- if the provider can no longer deliver the service, or deliver the service to the specified standard, it must be cancelled or varied immediately.
The HELF agreement must be reviewed at least once a year to ensure the resident still wants the services and is able to use them.
Once higher everyday living services and charges have been agreed, that agreed amount can only be increased annually by indexation.
HELF charges
Providers have full autonomy to set the price for HELF services. They do not have to seek approval from the Government or the Independent Health and Aged Care Pricing Authority (IHACPA).
Once a price has been agreed and included in a HELF agreement, it can only be increased for that resident through annual indexation.
This does not prevent providers from increasing the advertised price of HELF services for new individuals, allowing prices to keep pace with the costs of service delivery.
Bundles
A bundle refers to a combination of services that are provided together and charged as a group.
Standing HELF services can be offered in bundles, which can benefit providers through operational efficiencies and may result in lower or discounted costs for residents.
It is permissible to offer a bundle that includes a service the resident cannot use. However, the resident must not be worse off than if they paid only for the services they can use.
Residents are not required to accept a bundle, and all services included in a bundle must also be available for purchase individually.
Additional and extra service fees
No new extra service fee or additional service fee arrangements can be entered from 1 November 2025 onwards.
Existing extra service fee and additional service fee arrangements can continue until 31 October 2026 for people who agreed to these fees prior to 1 November 2025. Providers can increase fees in line with existing contracts. This will not require approval by IHACPA.
Providers should not unreasonably refuse a resident’s request to exit an extra or additional service fee arrangement. Providers should also have a conversation with each extra and additional service fee resident prior to 1 November 2026.
Individuals can only receive services under one arrangement. If changes are required to an existing extra or additional services fee agreement, then a new HELF agreement will be necessary, and the previous agreement will cease.