Home care providers considering lifting their prices have been reminded of their obligation to obtain the client's consent in an update from law firm Russell Kennedy.

The update, prepared by Russell Kennedy lawyers Anita Courtney, Solomon Miller, Jaqueline Wilson and Johanna Heaven, states, "Providers cannot simply impose a price increase on consumers."

Under the User Rights Principles 2014, which are contained in the Aged Care Act, "a provider can only vary the terms of their client agreement following adequate consultation and even then, only with the client’s consent," the update states.

"If a fee adjustment is not clearly stipulated in the agreement, or the provider is looking to increase their service charges by more than the agreement allows, the provider must consult with the client and obtain their consent."

Client agreements should contain a clear fee adjustment clause that outlines a prescribed formula or amount "such as CPI or a fixed percentage by which fees can be increased" and should have a stated trigger for the increase, such as a date or the provider giving notice of an increase, the update states.

The home care provider should "consult with the consumer and obtain their consent to the change". 

"Importantly, a consumer’s consent will only be valid if the consumer is given a genuine choice as to whether they agree or not and it is not generally acceptable to terminate a consumer’s agreement because they don’t agree to an increase," the Russell Kennedy update states.

Under reforms introduced by the Federal Government on 1 January 2023, home care care management fees are capped at 20% of the package level, while package management fees are capped at 15%.

You can read Russell Kennedy's full update here.