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Regulation of aged care accommodation payments – Single-stage Regulation Impact Statement – Department of Social Services

On 28 January 2014, the Assistant Minister for Social Services made the Fees and Payments Principles 2014 (the Principles) and the Aged Care (Maximum Accommodation Payment Amount) Determination 2014 , which have the effect of introducing the process by which accommodation payments in residential aged care are approved. Under this process, residential aged care providers that wish to charge accommodation payments above a certain threshold are required to apply to the Aged Care Pricing Commissioner for approval. The bases on which the proposed fees can be justified are set out in the Principles. The process is likely to have minor compliance cost impacts on the residential aged care sector, which are offset by previously-announced simplifications to the process for setting prices below the threshold. The measures have been assessed by the Office of Best Practice Regulation (OBPR) as likely to have a limited impact on the broader economy with minor impacts on competition and has therefore been given a C rating (on a scale of A to D) in relation to the level of analysis required. The OBPR notes that an options-stage RIS was not required for this proposal and a single stage RIS has been prepared. The RIS was prepared and certified by the Department of Social Services and approved by the OBPR, under the July 2013 Australia Government best practice regulation requirements.