The peak body for aged care providers says the proposed changes to fees the Aged Care Quality and Safety Commission (ACQSC) will charge providers for delivering regulatory activities are too complex and represent a "significant increase".
The higher fees, outlined in a 32-page consultation paper the ACQSC released last month, will result in the ACQSC collecting an estimated $48 million in 2025-26, compared with $12 million in 2024-25, a 400% increase.
Under the proposed changes, a 60-bed, single-site residential aged care home in MMM4 (medium rural town) that paid fees of $11,891 in 2022, will be required to pay $29,995, "an almost three-fold increase" according to Ageing Australia.
A home care provider with 112 clients could face a renewal fee of up to $36,650, "a significant expense" for a provider of that size.
Ageing Australia said higher fees could cause some providers, particularly smaller providers, those delivering specialist services, or those in non-metro areas, many of which are already operating at a loss, to "limit or withdraw services" ultimately having a detrimental impact on older Australians.
Ageing Australia members provided feedback the proposed fee structure is too complex, with a range of components making up a total fee.
"We recommend the Commission simplifies the arrangements to ensure providers understand each component and their total fee," Ageing Australia said.
Ageing Australia
General Manager Policy & Advocacy
Fees for variations could hinder innovation, they said.
Ageing Australia also makes the point the aged care sector is largely Government funded.
"We believe that direct Government funding for the Commission would be more efficient," they said. The new fees will increase provider costs, and as such should be included in the Independent Health and Aged Care Pricing Authority's cost collection for aged care and funded by the Government, they said.
The report, authored by General Manager Policy & Advocacy, Roald Versteeg, makes nine recommendations.
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Recommendation 1: Simplify the arrangements to ensure providers understand each component and their total fee.
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Recommendation 2: To improve transparency, publish the assumed number of hours required and the average hourly rates applied.
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Recommendation 3: Extend waivers to all providers delivering specialised care for diverse needs groups, regardless of their MMM category.
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Recommendation 4: Expand waivers to smaller providers and those operating in regional and rural areas, helping to address thin market participation and viability issues.
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Recommendation 5: Include more tiers for category 6 residential care home audits to ensure fees are proportionate to size and financial capacity of providers.
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Recommendation 6: Confirm transitional arrangements for residential care providers with multiple residential care homes so fees are not inappropriately brought forward.
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Recommendation 7: Make an allowance for reasonable provider-initiated variations to registration, to support service adaptation and growth.
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Recommendation 8: Make registration renewal invitations from the Commission be closer to the registration expiry date.
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Recommendation 9: If the renewed registration period is less than three years, provide a partial refund of fees proportionate to the reduced registration period.
Download Ageing Australia's submission here.
The ACQSC's consultation paper, including the proposed fees, is available here.
