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Living Longer, Living Better

The Federal Government’s aged care reform package and its impact on aged care providers


Living Longer, Living BetterOn 20 April 2012, the Federal Government announced a 10-year, $3.7 billion plan to reshape aged care in Australia.  

The plan, informed by the Productivity Commission’s report, Caring for Older Australians, is designed to deliver more choice, easier access and better care for older Australians and their families.

A primary focus of the reforms is to make it easier for older Australians to remain in their own homes for as long as possible as their care needs increase.  

The initiatives contained in the reform package should result in more opportunities for aged care operators to provide services to people in their own home.  

However, changes to funding arrangements, in particular accommodation bonds for residential care, refinements to the Aged Care Funding Instrument (ACFI) and the introduction of ACFI into home care, will require providers to consider the impact on their business, medium and long term cash flows and their financing arrangements.

Download below Deloitte’s summary of the key announcements and potential impacts on aged care providers, along with some recommendations as to how providers should prepare for these changes.

What Deloitte can offer interested parties and stakeholders

Deloitte’s team of in-house experts has a deep understanding of the issues effecting organisations that operate in the aged care sector.

We are one of the few firms in Australia to be able to provide fully integrated professional advisory services which include dealing with issues currently facing the industry including:

  • Cash flow forecasting and business modelling
  • Debt funding and refinancing
  • M&A and exit strategy
  • Valuation services including understanding the impact of the proposed changes on value.

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