Russell Kennedy principal Victor Harcourt and associate Matthew Goessler have had an article titled ‘Refundable deposits for aged care providers: What you need to know about the new compliance requirements’ published in the 2023 winter edition of Aged Care Today, an ACCPA publication.
Read the full article here
The article covers the recent legislative amendments which have strengthened protections for aged care residents and the Australian Government in relation to Refundable Deposits, and poses the question what does this mean for providers?
Under the changes, the Aged Care Quality and Safety Commission (Commission) is now empowered to request extensive information or documents from providers experiencing financial difficulties relating to the use of a Refundable Deposit to make a loan. Similarly, the Commission can request information and documents from persons to whom a provider has used a Refundable Deposit to make a loan.
It is expected that the Commission will continue to direct regulatory action toward provider compliance with the Prudential Standards.
What next?
Providers should familiarise themselves with the recent changes introduced by the Framework, and stay abreast of phase 3 of the Framework. Phase 3 of the Framework will start with the introduction of the new Aged Care Act, and will include legislative arrangements around minimum liquidity and capital adequacy requirements for providers.
Russell Kennedy will be publishing updates on the new Aged Care Act as and when changes arise. To stay in the know, you can subscribe to our aged care mailing list here.
Download the full article here
Read the full article here
If you have any questions or require advice on this issue, please contact Victor Harcourt.
Please read more about Russell Kennedy's expertise in aged care here.