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Federal Member for Mayo, Rebekha Sharkie, has introduced a private Members’ bill to Parliament that aims to cap the amount of money an aged care provider can charge for administration fees to deliver care in the home of older Australians.

The Bill has been introduced into Parliament , the Aged Care Amendment (Making Aged Care Fees Fairer) Bill 2021, which would put guidelines in place for administration or management fees set by home care providers.

If the legislation is approved, it would stop home care providers from charging more than 25 percent in administration fees for a Level 1 or Level 2 Home Care Package and limit them to no more than 20 percent in administration fees for a Level 3 and Level 4 Home Care Package.

“The current system is not working. Senior Australians are not getting the care they really need to stay at home,” Ms Sharkie said.

“Existing legislation just says aged care providers have to keep their management fees and administration costs to a ‘reasonable’ amount but there are absolutely no guidelines about what ‘reasonable’ looks like.

“So-called competition is not keeping prices down, and some older Australians are paying more than 30 percent and even up to half their packages in administration fees, or the costs are hidden in inflated hourly rates.

“The Government needs to stop the rorting and introduce pricing caps.”

The Bill would also stop home care providers from charging exit fees and require home care providers to offer potential clients a comparative fee schedule for at least five other approved providers in the area. If there are less than five providers in the area, the schedule must show fees for all approved providers in the area. The complete article from Liz Alderslade can be found on the link below:

https://www.agedcareguide.com.au/talking-aged-care/private-members-bill-aims-to-cap-admin-fees-on-home-care-packages