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Federal Court ruling – ‘asset replacement charges’

On 2 March 2018, the Federal Court ruled that ‘asset replacement charges’ – which some providers have been charging to residential care recipients – are not allowed under aged care legislation. This confirms the department’s position and previous advice. In summary, the ruling confirms:

  • aged care legislation is an exhaustive scheme of all the fees that providers can charge consumers
  • additional service fees can only be charged for ‘other’ care and services; i.e. other than the core care and services set out in the Quality of Care Principles 2014
  • only amounts permitted under aged care legislation can be deducted from lump sum refundable deposits
  • ‘asset replacement charges’ and similar fees are not permitted under aged care legislation.

For more information visit: -and-services-in-residential-aged-care-including-capital-refurbishment-type-fees

Latest Schedule of Fees & Charges: