The Aged Care Quality and Safety Commission (ACQSC) quietly released a 32-page consultation paper last month outlining plans to expand and increase the fees charged to aged care providers to fully recover the costs of delivering regulatory activities under the new Aged Care Act, which comes into force on 1 July.
Under the proposed changes, the ACQSC anticipates it will have revenue from cost recovery of more than $48 million in 2025-26, a more than quadrupling of the $12 million in revenue it received in 2024-25.
Why are fees increasing?
The Federal Government's policy requires non-Government service recipients to pay for some or all services.
The ACQSC’s proposed fee hike addresses the gap between regulatory activities ending in June 2025 and new ones starting in July 2025, as well as the need for cost recovery after fees haven’t been adjusted for inflation since 2016-17.
How high will the fees be?
As an example, in 2024-25, the full reaccreditation fee for a large residential aged care home (161+ beds) is $23,188.
To renew accreditation from 1 July 2025, residential aged care providers will have to pay:
- an 'entity level assessment' of $295,
- a 'review of category specific requirements' of $5,410,
- 'provider-level evidence gathering' of $7,910, and
- a 'renewal audit' (151-250 beds) of up to $17,550.
In total, renewal would cost $31,165 for a large residential aged care home, a nearly $10,000 fee hike to be paid every three years.
Commonwealth Home Support Program providers will also be charged fees for the first time.
Waivers of varying amounts are proposed for operations in specified Modified Monash Model (MMM) areas, for small operators, and for Aboriginal Community Controlled Organisations (ACCO).
Stage Two slated for 2027-28
The proposed changes will be implemented for 2025-26 and 2026- 27, and amount to Stage One of the changes. Additional changes are slated for 2027-28 onwards, for Stage Two, with "further consultation on these arrangements to occur closer to this time", the consultation paper states.
The ACQSC's consultation paper, including the complete list of proposed fees, is available here.
