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Australian Government Department of Health: Message to the Aged Care Sector

Indexation rates for Residential Aged Care and Home Care Packages and changes to the Maximum Permissible Interest Rate (MPIR)

An update of the schedules for residential and home care fees and charges, as well as subsidies and supplements will take effect from 20 March 2019. This is in line with changes to the basic age pension and indexation rates.

The updated schedules also give effect to the measures announced on 17 December 2018 by the Prime Minister, the Hon Scott Morrison, of a 30 per cent increase to the Viability Supplement for eligible residential aged care providers and a 30 per cent increase to the Homeless Supplement.

The updated schedules also give effect to the measures announced on 10 February 2019 by the Prime Minister, the Hon Scott Morrison, of a $320 million temporary general subsidy boost for residential aged care services and a permanent $35.7 million increase in home care supplements for dementia and cognition and veterans.

The new rates are now available on the department’s website.

The Department of Human Services quarterly review of fees and charges for all care recipients will be effective from 20 March 2019. Care recipients and providers will receive letters letting them know if there is a change to a care recipient’s fees and charges or if a refund may be due.

Schedule of fees and charges

View the updated Schedule of Fees and Charges for:

  • Residential and Home Care recipients who started care on or after 1 July 2014
  • Aged care home residents who entered care before 1 July 2014

A consumer who started a Home Care Package before 1 July 2014 can be charged a basic daily fee of up to 17.5% of the basic rate of the single pension. From 20 March 2019 this rate will increase to $10.54 per day.

Schedule of subsidies and supplements

View the updated Schedule of Subsidies and Supplements.

Increase to MPIR from 1 April 2019

The MPIR for ‘refund periods’ increases to 5.96% for the period 1 April to 30 June 2019 for:

  • refundable deposit balances and accommodation bond balances
  • accommodation prices
The Base Interest Rate remains unchanged at 3.75%.

View current and past refundable deposit balances and accommodation bond balance refund interest rates.

Providers must ensure:

  • their published accommodation prices on the My Aged Care website are up to date. If you have any questions contact the My Aged Care service desk on 1800 836 799.
  • the accommodation prices published on their own website and in relevant written materials are up to date.

Department of Health

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