Accommodation Pricing Guidelines
Second draft – for public comment as the Fees
and Payments Principles are released
Contents
1.
Overview ..............................................................................................................2
2.
Definitions ............................................................................................................2
3.
Considering the prescribed factors when determining prices ...............................3
4.
Keeping a written record of the consideration of the prescribed factors ..............6
5.
Groups of accommodation ...................................................................................9
6.
Key features statement ......................................................................................10
7.
Approvals from the Aged Care Pricing Commissioner .........................................10
8.
Publication requirements ...................................................................................11
9.
Statement of compliance....................................................................................11
1. Overview
This document is the Accommodation Pricing Guidelines document (Guidelines)
referred to throughout the Fees and Payments Principles 2013 (Principles) and
defined in section 14A.4 of those Principles. All requirements contained in these
Guidelines must be read in conjunction with the Principles.
These Guidelines commence on 1 November 2013.
From 1 July 2014, in order to charge an accommodation payment an approved
provider must meet the requirements of Part 3A.2 of the Aged Care Act 1997 (the
Act), which deals with matters such as accommodation agreements, charging
accommodation payments, methods of payment and the treatment of refundable
deposits, amongst others.
These Guidelines contain requirements relating to charging accommodation
payments, specifically the determining and publishing of prices and information.
The Minister for Mental Health and Ageing will make a determination specifying the
maximum amount of accommodation payment that an approved provider can charge
without first seeking approval from the Aged Care Pricing Commissioner.
All providers must determine and publish their accommodation prices in accordance
with these Guidelines and the Principles. In addition, providers who seek to charge
above the maximum amount determined by the Minister must also apply to the Aged
Care Pricing Commissioner for approval to charge the higher amount.
2. Definitions
These Guidelines use the same terms and definitions as provided in the Act and the
Principles.
All section and paragraph references are to the Principles, unless otherwise stated.
In addition, the following terms are used in these Guidelines:
prescribed factors, refers to all of the things that a provider must consider in
determining the maximum accommodation payment amount under
subsection 14A.7(2) of the Principles;
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key features statement,
means
subsection 14A.8(2) of the Principles;
the
statement
described
in
3. Considering the prescribed factors when determining prices
For each room, or part of a room, when determining the maximum amount of
accommodation payment, an approved provider is required to consider the
prescribed factors and to keep a written record of the method used and the matters
considered.
It is a requirement to consider every prescribed factor. Where a prescribed factor is
not applicable or not relevant to price setting, it is a requirement to confirm that the
factor does not apply or is not relevant to price.
For example, if the room, or part of a room, does not have any specific
accommodation or design features, then the consideration of that prescribed factor is
that there are no specific features.
Consideration of the prescribed factors involves consideration of the following:
(i)
The location of the service
Consider the physical location of the service, including the street address, the
town/suburb, local government area, proximity to local shops and community
services, access to transport and infrastructure, and the value of real estate.
(ii)
The quality, condition, size and amenity of the room or the part of the room
To consider the quality of a room or the part of the room means to consider
the building structure, the room furniture, bedding, and room fittings, and the
quality of all inclusions. Part of this consideration should include comparisons
of the standard of accommodation to be provided with specific
accommodation available elsewhere within the service and/or in alternative
services.
To consider the condition of a room or the part of the room means to consider
the current condition of the walls, windows, doors, floors, ceilings and fittings.
The size of the room means the dimensions of the room, including both the
floor area and the ceiling height. Size of a room may also be considered in
relation to the size of other accommodation options within the same service
or in other services.
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Amenity refers to a desirable or useful feature of the room or the part of the
room. Consideration of amenity means considering the location of the room
within the service, levels of privacy in the room, natural lighting to the room or
the part of the room, other lighting in the room or the part of the room,
windows in the room or the part of the room, balconies connected to the
room, views from the room or the part of the room, heating and cooling
options in the room, and the amount, shape and accessibility of storage space
for the person. Any other amenities may be identified and considered.
(iii)
The number of persons who may be provided with accommodation in the
room
Identify the number of persons who may be provided with accommodation in
the room.
(iv)
Whether the room has access to a shared bathroom or has a private ensuite
Consider the principal bathroom available to the persons who will occupy the
room, whether the bathroom is shared or private, and whether or not the
bathroom is ensuite (connected directly to the room) or not ensuite. This
includes considering the quality, condition, size and amenity of the bathroom
and its fittings. Between identical bathrooms, it is generally observed that a
private bathroom is more highly valued than a shared bathroom.
(v)
The quality, condition, size and amenity of the common areas in the service
that would be accessible to the person
To consider the common areas of the service means to first identify the
common areas that would be accessible to the person.
To consider the quality of the common areas means to consider the building
structure and the inclusions, such as furniture and fittings, and describing the
quality of the inclusions.
To consider the condition of the common areas means to consider the current
condition of the walls, windows, doors, floors, ceilings and fittings, and for
some external common areas, the features and level of maintenance of the
outside areas, the age, date of construction, date of refurbishment and other
terms that are normally used to describe the condition of buildings, gardens or
other common areas.
To consider the size of common areas means to assess the maximum
occupancy of the common area, and/or the dimensions including total floor
space and ceiling heights, and any ratios of residents to common areas.
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Amenity refers to a desirable or useful feature of the common area.
Consideration of amenity means considering the location of the common area
within the service, any views, natural lighting, other lighting and
entertainment options (for example: televisions, pianos, game tables and
libraries). Any other amenities may be identified and considered.
(vi)
Whether the room or the part of the room has any specific accommodation
or design features
To consider the specific accommodation or design features that are in the
room means to identify any specific accommodation or design features and
relate them to the needs of the person who will occupy the room.
(vii)
Whether the service has any specific accommodation or design features that
would be accessible to the person
To consider the specific accommodation or design features that would be
accessible to the person in a service means to identify the specific
accommodation or design features and relate them to the needs of the
person. This includes design concepts as implemented in the service. An
example would be those aspects of a service, or part of a service, specifically
designed to cater for people with dementia.
(viii)
Any additional care and services (other than care and services specified in
the Quality of Care Principles 1997 for the purposes of subsection 54-1(1) of
the Act) included in the amount of accommodation payment and offered at
no additional cost to the person
To consider whether there is any specific additional care or services provided
to the person at no additional cost to the person, means to identify what
additional care or services are provided within the accommodation payment
(for example, a daily delivery of a newspaper for the exclusive use of the
person in their own room). For each additional care or service provided,
confirm that it is not the subject of a care fee, an extra service fee, an
additional amenity fee or is not funded through any other supplement or
subsidy.
(ix)
Any other matters required to be considered by the Accommodation Pricing
Guidelines
The approved provider must also consider the following matters:
i.
Whether the room, or part of a room, belongs in a group of
accommodation – refer to groups of accommodation in section 5 in these
Guidelines;
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ii.
iii.
The cost of providing accommodation at the service, including
construction costs;
Other intangible qualities of the service that may be desirable to
residents.
It is not relevant to consider the following when determining
accommodation payment amount to be published:
iv.
an
The relative wealth of an individual person. However, the relative wealth
of a person is relevant when negotiating an accommodation payment
with that person, i.e. up to the maximum accommodation payment
published for the room.
4. Keeping a written record of the consideration of the
prescribed factors
For each room, or part of a room, subsection 14A.7(3) of the Principles requires an
approved provider to describe in writing the matters considered when setting the
maximum price for the accommodation, and to retain a record of the method used. It
is a requirement to consider every prescribed factor, and to keep a written record of
the consideration of each matter when setting prices.
Where there is no specific matter able to be considered for a prescribed factor, then
it is a requirement to note that there was no such matter to consider. This note may
be phrased as ‘Not applicable to this room or service’ or similar.
For each matter that is considered, it is a requirement to keep a written record of
only those aspects judged relevant to price setting. Written records may be supported
with plans of the building, photographs and/or video.
To keep a written record of the consideration of the prescribed factors involves
providing details of what was considered for each factor, how value was assessed or
attributed and doing the following:
(i)
The location of the service
Provide a text description of the location of the service, including the full
street address of the service, and the valuable aspects of that location.
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(ii)
The quality, condition, size and amenity of the room or the part of the room
Provide a text description that
accommodation, a text description
of the room, which may include
accommodation, and describe the
amenity of the room.
identifies the room that is offered as
of the quality, condition, size and amenity
comparison with other rooms and other
value of the quality, condition, size and
Quality of a room can be described by listing any furniture, bedding, and room
fittings, and describing the quality of the inclusions. Descriptions of the quality
and descriptions of the value can be written in comparison to specific
alternative accommodation available elsewhere within the service or in
alternative services.
Condition of a room can be described by stating the current condition of the
walls, windows, doors, floors, ceilings and fittings. This includes references to
the age, date of construction, date of refurbishment, other terms that are
normally used to describe the condition of buildings and residences and the
potential use of building reports. Comparison of the current condition of the
room to the room in its new condition, or to the current condition of other
rooms in the same or alternative services, can be used to describe value.
Size (for the room) can be described in square metres of floor space. Size may
also be described in relation to the size of other accommodation options
within the same service or in other services and may also note the actual
amount of usable space (for example, usable floor space is lower where
structural columns are located in the room).
Amenity refers to a desirable or useful feature of the room for the person or
people who will occupy the room. A written record of amenity may include
descriptions of the location of the accommodation within a service, privacy,
lighting, windows, balconies, views, heating and cooling options, and storage
space for the person.
(iii)
The number of persons who may be provided with accommodation in the
room
Record the number of people who may be provided with accommodation in
the room.
(iv)
Whether the room has access to a shared bathroom or has a private ensuite
Provide a text description of the principal bathroom available to the person(s)
who will occupy the room, stating whether the bathroom is shared or private,
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and whether or not the bathroom is ensuite (connected directly to the room)
or not ensuite.
(v)
The quality, condition, size and amenity of the common areas in the service
that would be accessible to the person
Provide a text description that identifies and describes the common areas of
the service to which a person, who will occupy the accommodation, would
have access.
Quality can be written by listing and describing inclusions such as furniture
and fittings, and describing the quality of the inclusions.
Condition can be written by describing the current condition of the walls,
windows, doors, floors, ceilings and fittings. This may include references to the
age, date of construction, date of refurbishment and/or using other terms that
are normally used to describe the condition of buildings, gardens or other
common areas.
Size of common areas can be described by specifying the maximum occupancy
of the common area, by specifying the floor space in square metres, or both,
and may include ratios of residents to common areas.
Amenity can be written by listing and describing the desirable and/or useful
features of the common area, and includes but is not limited to views, lighting
and entertainment options.
(vi)
Whether the room, or part of the room, has any specific accommodation or
design features
Identify and describe any specific accommodation or design features in the
room for a person who will occupy the room.
(vii)
Whether the service has any specific accommodation or design features that
would be accessible to the person
Identify and describe any specific accommodation or design features to which
a person will have access.
(viii)
Any additional care and services (other than care and services specified in
the Quality of Care Principles 1997 for the purposes of subsection 54-1(1) of
the Act) included in the amount of accommodation payment and offered at
no additional cost to the person
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List and describe the specific additional care or services included in the
amount of accommodation payment and provided to the person at no
additional cost.
(ix)
Any other matters required to be considered by the Accommodation Pricing
Guidelines
Provide a list and a written description of any other matters required to be
considered by these Guidelines and describe what was considered with regard
to each matter.
5. Groups of accommodation
The application of these Guidelines may be simplified by creating one or more groups
of accommodation.
If a provider chooses to create any groups of accommodation, each group must
comply with the following:
i.
ii.
iii.
iv.
Each group may consist of only rooms, OR only parts of rooms; and
Each group must have a distinctive title, which may be a text and/or numerical
designation at the discretion of the provider, and may use the terms group,
type, class, category, level, wing or any other functionally similar term; and
A description of the accommodation in the group must be made and must be
applicable to each room, or part of a room, in the group for the purposes of
considering the prescribed factors, setting the maximum amount of
accommodation payment, and writing key features statements; and
The same maximum amount of accommodation payment must apply for each
room in a group of rooms, or for each part of a room in a group of parts of
rooms.
When describing a group of accommodation, a provider may choose to omit any level
of detail from the description that does not affect the maximum amount of
accommodation payment for the rooms in a group, or the parts of rooms in a group.
Consider the following examples:
Example 1:
In a group of rooms with different room sizes, the smallest room in the group
has 12 square metres of floor space. The maximum amount of
accommodation payment must be based on providing 12 square metres of
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floor space, and the description of the group would say “at least 12 square
metres of floor space”.
Example 2:
In a group of rooms where some, but not all rooms, have five lights and all
other rooms have more lights, if the number of lights does not affect the
method to determine the maximum amount of accommodation payment,
then the description of rooms in the group need not mention the number of
lights.
Example 3:
In a group of rooms, the floors are covered with different coloured carpets
and the carpeted rooms are valued above another group of rooms with vinyl
floors. The same maximum amount of accommodation payment will be set for
each and every room in the group. The description of the group may state that
the rooms having “carpeted floors” and need not specify that the rooms have
“red carpet or blue carpet”. Alternatively, if the carpets did not affect the
method for setting the accommodation payment for the rooms in the group,
the provider may choose to omit carpet from the description.
6. Key features statement
An approved provider must prepare a key features statement (paragraph 14A.8(1)(c)
and subsection 14A.8(2)) and is required to document their consideration of the
prescribed factors when setting prices (subsection 14A.7(3)). When preparing the key
features statement, an approved provider may choose to copy and/or summarise any
details from their written record of considering the prescribed factors.
7. Approvals from the Aged Care Pricing Commissioner
Every provider must apply the Principles and these Guidelines to develop a price for
accommodation available in a service.
When making an application to the Aged Care Pricing Commissioner, it is a
requirement that the application be in a form approved by the Pricing Commissioner
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and be accompanied by any information or documents specified in the approved
form.
8. Publication requirements
When publishing prices from 1 April 2014, the following information will conform to
the requirements of the Principles and these Guidelines:
i.
ii.
iii.
iv.
v.
Identify the room, part of a room, or group of accommodation; and
The maximum amount of accommodation payment, expressed as a refundable
accommodation deposit; and
The maximum amount of accommodation payment, expressed as a daily
accommodation payment; and
The maximum amount of accommodation payment, expressed as a
combination of some refundable accommodation deposit with some daily
accommodation payment; and
The key features statement.
In addition, an approved provider is required to make publicly available the following:
a. The fact that a daily accommodation payment may be deducted from a
refundable accommodation deposit balance in order to meet an agreed
amount of accommodation payment.
9. Statement of compliance
The public statement that the approved provider must make for paragraph
14A.8(1)(b) of the Principles is:
I certify that the prices published have been determined having regard to the
relevant legislation, to subsection 14A.7(2) of the Fees and Payments Principles
2013 and to the Accommodation Pricing Guidelines. In particular I certify that
the prices take into account the standard of accommodation and other
facilities available and have been determined having due regard to the list of
factors specified in subsection 14A.7(2) the Fees and Payments Principles 2013
and the Accommodation Pricing Guidelines.
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