Additional service fees in residential aged care

Overview

Additional service fees (ASF) are increasingly being utilised by residential aged care providers as a way to enhance their service offering and diversify revenue streams. By agreement with the resident, an aged care provider can charge an additional fee for care and services over and above those that they are required to supply under aged care legislation (Quality of Care Principles 2014 Schedule 1 – Care and services for residential care services).

Typical examples of services that can attract ASF include pay TV, hairdressing, alcohol, access to an onsite pool, gym or movie theatre. Multiple services are often provided as a package.

There is a lack of clarity and transparency for both providers and residents in relation to ASF.

ASF also exist within home care, however, these fees operate in a different context and are not being considered as part of this consultation.

Why We Are Consulting

This consultation seeks feedback on a number of proposals designed to provide greater certainty, transparency, consumer choice and protection, through:

• publishing of ASF by providers;
• restrictions on low means residents agreeing to pay ASF;
• time limits for ASF agreements; and
• review requirements for ASF.

Further details on the proposed publishing requirements are contained in the attached consultation paper.