Call for submissions on capital financing arrangements for residential aged care
The Royal Commissioners into Aged Care Quality and Safety are calling for submissions on capital financing arrangements for residential aged care ahead of its Funding, Finance and Prudential Regulation Hearing, commencing Monday 14 September 2020.
The Royal Commissioners are making inquiries into whether the current capital financing arrangements in Australia are appropriate and sufficient for the future requirements of residential aged care, and whether there are improvements to these arrangements that should be recommended.
The amount of capital investment necessary in residential aged care for the future requires careful consideration. In 2019, the Aged Care Financing Authority estimated that the combined total investment for new and rebuilt residential care places over the next decade will be about $55 billion. This compares to $16.7 billion in building approvals for new and rebuilt residential care places over the decade to 30 June 2020. However, people's preference to remain at home as they age and the reflection of this preference through aged care policy and programs may reduce the amount of capital financing required in residential aged care over time.
A number of recent reports have raised issues about the current arrangements for capital financing in aged care. These include their effectiveness and efficiency, prudential oversight risks, and also concerns about the way in which the arrangements may affect the viability of providers and their ability to maintain a sufficient standard of accommodation into the future.
To assist interested individuals and organisations to make submissions, the Royal Commissioners are releasing a paper describing the history of capital financing arrangements in residential aged care, and how the current arrangements operate. Capital Financing for Residential Aged Care also contains a number of questions for consideration, together with details on how to make a submission.
Questions around the financing and sustainability of future improvements to the aged care system, the appropriate funding model or models to support the delivery of aged care services, and the prudential regulation of aged care providers are set to be explored by Royal Commissioners in next week's Sydney Hearing 5.
To make a submission, email: ACRCCapitalFinancing@royalcommission.gov.au.
In providing a submission, you can also:
- write to the Royal Commission at GPO Box 1151 Adelaide SA 5001 or
- telephone 1800 960 711 (between 8:00am-6:30pm ACDT Monday-Friday except on public holidays. Interpreter service available).
The final date to provide submissions is Friday, 2 October 2020. It is intended to publish all submissions received on the Royal Commission's website. However, the Commissioners reserve the right to not publish submissions, or to redact information in submissions, before publication.