Living Longer Living BetterFrom 1 July 2014 the next phase of implementations from the Aged Care (Living Longer Living Better) Act 2013 came into effect. These implementations continue to reinforce the guiding principles to give older Australians more choice, more control, and more of the services they might need to stay in their own home for longer.Some of the changes that have been implemented include:Home care packages, to allow people to stay in their own home, will include a basic fee that all people receiving packages will be asked to pay, and an income tested care fee;The distinction between low and high-level care will no longer apply. The provision of care services in conjunction with accommodation is simply ‘residential care’.Providing choice for how people pay for accommodation and services in residential care, including refundable accommodation deposit, a daily accommodation payment, or a combination of both, with 28 days to decide;A requirement of residential aged cared providers to publish the maximum amount they charge for accommodation and extra services, thus creating a higher level of transparency for the care recipient;A new means test in residential care to determine a person’s fair contribution, if any, to their care and accommodation, based on both their assets and income. New means test arrangements will also apply to home care.Impact on the Retirement Village IndustryThe retirement village industry has already seen some Operators revisiting their financial and service delivery models as a result of the initiatives to help people stay in their home for longer with the assistance of Home Care Packages. Retirement villages are likely to attract residents later in life with immediate care needs; or retain residents who would traditionally move into a low care environment. Further, key partnerships with, or diversification into, Community Care or Home Care will allow Operators to facilitate access to or provide the services residents need, when they need them. One of the major changes to aged care is that there will be no distinction between low care and high care. Aged care facilities will be geared to take care of the needs of those requiring high or palliative care. This removal of the distinction of levels of residential care, coupled with the providing care directly into a person’s family home will not offer the peace of mind, social engagement and security that an aged care facility or community environment offers. For the last decade, operators have struggled with serviced apartments. This has been reflected by low occupancy and increased days on market for the resales of units, all of which contributes to minimal capital growth. The retirement village industry is provided with an excellent opportunity to cater to Australian seniors who require low levels of care, engagement and security through serviced apartments.Retirement village operators are able to provide an environment with services such as meals, 24 hour care, domestic assistance, security and social engagement without the complications of the means testing imposed through the reforms.Operators are encouraged to invest time to understand these reforms and take them as an opportunity to evaluate their current product offering, including financial and service delivery models, to ensure they are getting the greatest benefit of the reforms for their business and their residents.More information on the Living Longer Living Better Reforms can be located at MyAgedCare or through the Department of Health.
Home Property Australia Living Longer Living Better