Lapsing of 4 year Approvals for accommodation prices approved above the Minister’s threshold of $550,000.00

Approvals by the Aged Care Pricing Commissioner to charge a Refundable Accommodation Deposit (or equivalent) that is higher than the higher $550,000 determined by the Minister, lapse at the end of 4 years from the date of approval.

Page last updated: 01 March 2018

1 July 2018 is the date that approvals made on or before 1 July 2014 will lapse, in accordance with the Fees and Payments Principles 2014. Providers may not lawfully charge above the maximum amount for accommodation payments determined by the Minister (currently $550,000.00 for the relevant accommodation) after that date.

For lapsing approvals providers will have a choice between:

1. Renewal Application for a previously approved price

  • where there is no increase in price sought for accommodation groups (other than permissible indexation); and
  • no changes have been made to the accommodation groups.

This renewal application form is attached below:

PDF version: Renewal Application form for Lapsing Approvals (PDF 659 KB)

OR

2. New Application for a previously approved price

  • where an increase in price is sought, an application should be made on the standard form detailed in the New Applications section on the Accommodation Payments tab

Some providers have sought clarification about the application of indexation to lapsing approvals: whether for renewal applications or when making new applications seeking an increase in price. For further information please see the Clarification about the application of indexation to lapsing approvals web page.

To meet the statutory deadline for re-approvals either a renewal or a new application must be received no later than 60 days before the lapsing date. For those approvals lapsing on 1 July 2018, applications must be received by the Office of the Aged Care Pricing Commissioner by 1 May 2018.

It is important to note that these provisions and choice of forms will apply to all applications where approvals will lapse after the 4 year period from the date of approval. This date can be found on the original decision letter from the Office of the Aged Care Pricing Commissioner.

Providers uncertain about which form to use, or with other questions about the process, are encouraged to contact the Office of the Aged Care Pricing Commission on 1300 550 970.