Ageing Australia said it was pleased that its advocacy has led to the lowering of proposed Liquidity Standards, which would have threatened to strangle investment in the sector.
The Aged Care Quality and Safety Commission announced liquidity ratios of two percent, rather than the 10 percent that was proposed, which Ageing Australia said has recognised the lower risk associated with independent living and retirement village operators.
“If we’re going to have minimum liquidity standards, as the Royal Commission recommended, we want to make sure they don’t undermine investment,” said Ageing Australia’s General Manager of Policy and Advocacy, Roald Versteeg.
“Clearly, the figure of 10 percent would have strangled investment in the sector, which we were able to convey to the Aged Care Quality and Safety Commission in over a dozen meetings, reinforcing our original, evidence-based submission.”
Versteeg said Ageing Australia also advocated for a clearer alternative method for providers to demonstrate compliance against the Standard, to avoid situations where hundreds of millions of dollars, intended to build more beds, are tied up.
“It’s great to see that the Commission has responded to these concerns and has clarified this alternative method. This is a win for providers and older Australians alike,” said Versteeg.
“The sector needs settings that are future-focused, supporting our capacity to meet the needs of a growing ageing population in the coming decades.”
Deputy Commissioner Regulatory Operations at the Aged Care Quality and Safety Commission, Gary Rake, said the reforms mark a significant shift in regulatory oversight to better protect residents and ensure providers are equipped to deliver sustainable care and services into the future.
“These new standards provide a clear and consistent framework for financial stewardship in the aged care sector,” Rake said.
“They will help ensure that providers are managing resources responsibly, while giving older people and their families greater confidence in the services they rely on.”
More news here.
