Federal Court Decision in Regis Aged Care Case
The Federal Court handed down a decision on 2 March 2018, to disallow Regis Aged Care from levying an “Asset Replacement Charge” on aged care residents.
This ruling confirms the Federal Department of Health’s interpretation of the relevant legislation.
The decision is a reminder to aged care providers to ensure that they adhere to the legislation in regards to fees charged to residents.
An information sheet regarding the legislation can be found at https://agedcare.health.gov.au/programs/residential-care/charging-fees-for-additional-care-and-services-in-residential-aged-care-including-capital-refurbishment-type-fees
The Department notes the Federal Court’s decision has a 28-day appeal period.
See also The Weekly Source TM articles “Regis loses Federal Court bid to charge residents ‘Asset Replacement Charge’ “and “Regis reports Net Profit After Tax of $27.9M for HY – citing funding cuts and lower occupancy”.
6 March 2018.