Regis has announced it has continued to charge residents a daily $15 ‘Asset Replacement Charge’ despite the Department of Health issuing a ban on “capital refurbishment fees” in September last year.

Regis maintains in The Australian that its ARC is “consistent” with the Aged Care Act 1997 Act and is now asking the Court for “clarity” on the interpretation of the legislation.

“Regis’ subsequent engagement with the Department has not provided certainty in relation to the Department’s position regarding capital refurbishment type fees and their compliance with the Act and Regis is now seeking Court confirmation,” Investor Relations GM Kirsty Nottle said in an ASX announcement.

“Existing arrangements in relation to charging the ARC (asset replacement charge) continue and Regis will make provision in its FY17 financial accounts reducing profit by an amount equal to the ARC revenue recognised”.

The Department’s fee update last September hit stocks of the listed operators including Regis, Estia Health and Japara Healthcare – on top of the $1.2B in ACFI cuts.

Regis reported profit of $30.9M in the six months to December 2016.