What is the government accommodation supplement?

April 23, 2014 | Aged Care Management

The work of an aged care provider is never done, and is set to grow even more throughout the next few months thanks to coming accommodation changes.

Education of staff will be important in the lead-up to July 1, as will a comprehensive understanding of the intricacies involved with the changes. One update is coming to the government accommodation supplement that providers need to be aware of.

Before the changeover, make sure your facility is ready.

Following July 1, the government will continue to the pay the usual supplement to providers who are deemed eligible. There are a few updates, however, involving how eligibility is determined. Following the change date, this eligibility will be determined under a new means tested arrangement, involving a comprehensive combined asset and income assessment.

Under the new testing arrangement, the government will pay either maximum supplement amount or a partial amount – depending on the outcome of the financial assessment.

Following the test, if a resident is found to be eligible for the maximum supplement amount, a provider cannot charge over for accommodation. If there's a difference between the part supplement and maximum for the age care facility, a provider can charge the difference.

While it may seem initially confusing, it's actually quite simple. For example, if a resident receives a $40 supplement, and the maximum facility supplement is $60, a facility can only charge $20 per day. The resident contribution can either come from a RAD or DAP.

A range of applications is available to help aged care providers with ACFI, and can be accessed through standard mobile devices.

There's also the free ACFI calculator app, which is able to significantly speed up the process. The Mirus Metrics app is designed to additionally assist with ACFI, focusing on fund optimisation. Using these simple but capable tools is a great way to save time.