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Living longer, living better

Accommodation payments proposals released


Living longer, living better. ACFA accommodation payments releasedOn 20 April 2012, the Federal Government announced its 10-year, $3.7 billion Living Longer, Living Better aged care plan (L3B).

The Federal Government’s proposals on accommodation payments for residential aged care have now been announced. They have been developed following advice provided by the Aged Care Financing Authority (ACFA).

In contrast to previous iterations, a simpler model is being proposed including:

  • 3-tiered system set by reference to a daily accommodation payment (DAP) with conversion to a refundable deposit (RAD)
  • Prices in the top tier requiring Government pre-approval whilst prices in the second tier will require 'self-assessment' against guidelines

This report provides background, outlines the elements of the proposal in detail and provides analysis of implications based on a pre-set mechanism for providers.

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