The Stage 4a Release of the Aged Care Rules 2025 (Rules) includes draft rules that relate to place allocation, registered provider obligations and funding. Below are some of the key takeaways.

• Place allocation –The System Governor may invite applications for the allocation of a Transition Care Program (TCP) (section 95-5 of the Rules). Before allocating a place, the System Governor must be satisfied that the place will be used to deliver funded aged care services in accordance with an agreement between the Commonwealth and the State or Territory for the purpose of the TCP (section 247 of the New Act; section 95-15 of the Rules). A place allocated to an entity for a specialist aged care program comes into effect when the entity satisfies certain conditions, including being a registered provider in a registration category for one or more services groups through which funded aged care services will be delivered under the specialist aged care program (section 97-5 of the Rules). However, an allocated place ceases to be in effect if the entity ceases to be a registered provider, or if the System Governor and the entity agree the place may be relinquished, or if the System Governor revokes the place under certain conditions (section 97-15 of the Rules). In order for a place to remain in effect, registered providers are required to follow certain conditions, such as notifying the System Governor if the entity will not be able or does not intend to use the place for a period of 12 months or more (section 99-5 of the Rules).
• Funding – Registered providers may charge an accommodation payment to an individual for the delivery of funded aged care services. The Rules prescribe when individuals may be charged and includes new daily accommodation payment (DAP) indexation and refundable accommodation deposit (RAD) retention requirements. DAP indexation is a process that adjusts the DAP amount that a registered provider can charge an individual for a relevant day. It is calculated using the individual's maximum possible DAP amount and indexation factor, and multiplying the two amounts together (section 302-10 of the Rules). RAD retention refers to certain amounts that a registered provider may deduct from a refundable deposit balance. For example, a registered provider may deduct a retention amount if there is a retention amount outstanding on the day the registered provider ceases to deliver ongoing funded aged care services to the individual (section 308-10 of the Rules). This must be done prior to refunding the RAD to the individual or transferring the RAD to another registered provider. RAD retention amounts must not be deducted more than once in any one-month period or in certain other circumstances.
• Status of delivery branches – The Rules include requirements to report to the System Governor any changes in the status of a registered provider's service delivery branches. This is defined by the Rules as a place of business through which the provider delivers funded aged care services to an individual through the 'home support', 'assistive technology' or 'home modifications' service groups (section 7-23 of the Rules). This includes changes such as the opening, closing or merging of their service delivery branches. Importantly, providers should take note of these requirements which do not exist under the current legislative framework.
• Starting or ceasing services – Registered providers will have certain obligations and conditions of registration. Conditions regarding the start and cessation of delivering funded aged care services is one of the conditions with which a registered provider may need to comply. This is intended to ensure continuity of care. This will include providing a notification to the System Governor and the Commissioner when the provider starts or ceases to deliver any funded aged care services to an individual (sections 149-5 to 149-25 of the Rules). The Rules also prescribe that a registered provider must not cease to deliver funded aged care services unless certain circumstances apply. For example, the needs of an individual can be more appropriately met by other types of funded aged care services, the individual has intentionally caused serious harm to an aged care worker of the provider, or the individual notifies the provider in writing that they no longer wish to receive funded aged care services from the provider (section 149-35 of the Rules). In ceasing to provide services to an individual, there are also notice requirements owed to individuals and new providers regarding the cessation of services and their unspent portions (sections 149-40 to 149-46 of the Rules).
• Quality indicators – Registered providers who deliver residential aged care services, excluding those delivering services under a specialist aged care program, are required to report to the System Governor on quality indicators each reporting period. The quality indicators report must include information on various aspects of care such as pressure injuries, restrictive practices, falls and major injury, medication management, and hospitalisation (sections 166-105 to 166-185 of the Rules).

Several provisions in the Rules are still pending and will be included in the Stage 4b Release, scheduled for April 2025.

Our team is closely monitoring these changes and developing resources to assist with the transition, including updated service agreements and compliance frameworks, which can be explored on our Aged Care Solutions page.