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Aged care residents can now choose to pay for their accommodation by lump sum or daily payment, or a combination of both, while waiting for their means assessment to be finalised.
The change follows the passing of the Aged Care Legislation Amendment (Aboriginal and Torres Strait Islander Aged Care Commissioner and Other Measures) Bill 2026 last week.
Part 7 of the Bill providers for the repeal of section 294(1)(ca)(ii) of the Aged Care Act 2024 – which previously outlined that residents awaiting a means assessment could only pay for their accommodation through daily payments, even when ready and able to pay a lump sum.
But consumer protections remain, including that interim payments are capped at the agreed accommodation price and that providers refund any overpayment if a resident is later assessed as low means.
Catholic Health Australia has welcomed the change, praising it as a sensible adjustment that reduces complexity for residents, families and services.
CHA aged and community care director Alex Lynch said the former rule caused confusion at an already stressful time, added to residents’ costs and put cashflow pressure on the services caring for them.
“Catholic providers saw the impact firsthand and led the advocacy for a solution. We thank the government and [Minister for Aged Care and Seniors Sam Rae] for their considered engagement, and for adopting this solution,” he said.
Mr Lynch also welcomed the maintenance of the two consumer safeguards to give residents “confidence that choosing to pay a lump sum early will never leave them out of pocket.”
The change is expected to come in by the end of October.
The Aged Care Legislation Amendment (Aboriginal and Torres Strait Islander Aged Care Commissioner and Other Measures) Bill 2026 also included a new rapid review pathway for disputed Integrated Assessment Tool outcomes and the establishment of a permanent Aboriginal and Torres Strait Islander Aged Care Commissioner role.
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