Accomodation Pricing: Subsidy Principles (Exposure Draft)

Accomodation Pricing: Subsidy Principles (Exposure Draft)

The exposure draft of this  piece of legislation have been released with comments due 2 June (very short time line)  

There is also an Addendum to the Overview Draft Subsidy Principles 2014  This summarises the proposed changes to the Aged Care Principles.

The Subsidy Principles will take effect from 1 July 2014 and for this reason it is understood that there will be adjustment to the content.  The Principles contain important information about the accommodation supplement payment payable to residential aged care approved providers as well as information regarding the higher accommodation supplement to services that are either newly built or significantly refurbished (on or after 20 April 2012).

The application process for these payments and the final accommodation supplement prices are still to be finalised.

The document states there will be an increase in the basic subsidy amount effective from 1 July 2014 of 2.4%.  Additionally there will be a 20% increase in the amount of the viability supplement.

It is important that anyone in a key personnel position within the industry keep abreast of the changes that are being implemented in preparation for July 1 as part of the Living Longer Living Better Reforms (LLLB).

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