The Australian National Commission of Audit (NCOA) has recently outlined recommendations for the future direction of the sector. Released earlier this year, the report details future growth of the industry and explains additional measures that should be taken.
"The Commission supports the range of reforms currently being introduced in the aged care sector, but recommends additional measures be undertaken to improve the effectiveness and sustainability of the sector," a spokesperson explained.
While the changes in their entirety are unlikely to see implementation, some could provide useful benefits for providers, and ease the strain on facilities.
Firstly, NCOA recommends including the full value of the main residence in the current aged care means test. In addition, the commissions desires changes to be implemented to allow older Australians access to equity in their principle residence.
This change is recommended so as to pay for a part of the aged care cost. It could eventually be useful for aged care residents, as the cost of living would be reduced substantially.
A fee has also been proposed by NCOA, one which would see providers having to pay to access the accommodation bond guarantee. Alternatively, providers would be required to take out private insurance in order to cover the risk of default.
Perhaps the change with the greatest long-term benefits, cutting out reporting duplication in all areas of financial reporting in the aged care sector is recommended, along with the reduction of other regulatory requirements.
Big changes are on the way over the next few years, and aged care providers will need to ensure they're appropriately prepared.
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