Commission seeks feedback on new provider registration and renewal fees

The Aged Care Quality and Safety Commission is seeking provider feedback on proposed charging arrangements for providers who wish to register, renew or vary their registration. 

Under the proposed model, new providers could be charged at least $20,000 for a range of assessments and audits, with a renewal audit setting providers back by more than $16,000 per home 

Key points

• The Cost Recovery Consultation Paper outlines the Australian Government’s plan to implement cost recovery charges for aged care provider registration, renewal, and provider-initiated variations starting from July 1, 2025
• The plan aligns with the Aged Care Act 2024, which introduces a new regulatory framework for Commonwealth-funded aged care services
• The Aged Care Quality and Safety Commission is proposing new fees for new provider registration applications, registration renewals (every three years) and provider initiated variations such as adding or removing services and/or homes

New providers could pay $3,290 to become a registered provider plus $14,910 for a registration audit, while the proposed renewal fee for a large residential care provider is $17,550

The Commission already charges fees to assess applications for new aged care providers plus for residential care accrediting and auditing services.

However, with the new Act establishing a new framework for the regulation of government-funded aged care, including a single-entry point into the system and six registration categories, the proposed charging arrangements form a more detailed cost recovery process.

“Cost Recovery involves government agencies charging non-government organisations some or all the costs of a specific government activity. This may include providing goods, services or regulation, or a combination of these. This approach is outlined and authorised in the Australian Government’s overarching Cost Recovery Policy and Charging Framework,” the Commission states.

“Our proposed new cost recovery arrangements aim to be fair and robust. Our proposed fee waivers are intended to support providers to enter, operate and remain in the market.”

As per the Commission, the proposed charging arrangements cover: 

• The activities we currently charge for
• Details on the activities that are proposed to be charged for:
• Becoming a registered provider and renewing or varying a provider registration
• Proposed fees and how we calculated them
• Proposed fee waivers and who would be eligible for them
• Financial estimates for our costs and revenue relating to the activities proposed for cost recovery
• Estimated volumes of the activities we are proposing to charge for.

Service providers, aged care workers, older people and their representatives, or anyone with an interest in the aged care sector are welcomed to provide feedback to the Commission. This will help shape advice to government on the fees and waivers that will apply to Commission activity from July 1, 2025.  

Consultation is open from March 5 to  April 1, 2025. More information is available here, while we have summarised some of the consultation’s key points below. 

What is the purpose of the Cost Recovery Consultation Paper?

The Cost Recovery Consultation Paper provides information on how the Commission proposes to implement cost recovery charging for provider registration, renewal of registration and provider-initiated variations to registration. It also intends to report actual financial and non-financial performance information for provider registration, renewal of registration, and provider-initiated variation of registration, and contains financial and non-financial forecasts for 2025-26 and three forward years. 

After the outcomes of consultation have been taken into account, it will be amended and become the Commission’s Cost Recovery Implementation Statement (CRIS).

What does cost recovery cover?

The Aged Care Quality and Safety Commission will implement cost recovery for:

• Provider registration (new applications).
• Renewal of registration (every three years).
• Provider initiated variations (e.g., adding/removing services or care homes).

Fees will be based on the type of service a provider offers, categorised into six registration categories: Category 1 – Home and community services, Category 2 – Assistive technology and home modifications, Category 3 – Advisory and support services, Category 4 – Personal care and care support in the home or community (including respite), Category 5 – Nursing and transition care, and Category 6 – Residential care (including respite).

“The new system of obligations, including the fees, is intended to be proportionate to the environment a provider operates in, the services they deliver and any risks of harm that may be present. In practice this means the proposed fees will be different depending on the registration category, or categories, an applicant is applying to be registered in or is renewing,” the consultation paper states. 

How much will providers be charged?

All up, there are 24 fees for either registration, renewal of registration or provider initiated variations. 

For example, an entry level assessment for a new provider would cost $3,290. Residential care home approval would be $3,820 per residential care home. Meanwhile, the mandatory audit for any new provider would be $14,910.

Providers renewing their registration would only have to cough up a base $295 fee, although the review of category specific requirements could cost more than $5,000. Renewal audits also vary from between $7,910 and $18,720 depending on the category being audited and the provider’s size.

The Commission states that almost 800 providers would be impacted by the renewal application. 

Meanwhile, providers looking to make changes to the services they offer (variation applications) could pay almost $5,000 to remove a category and up to a similar amount to add one. The Commission predicts that this new charge would not impact many providers, however, with an estimated four entities to be affected. 

Does the Commission expect to make a profit?

Commission modelling predicts a $2.75 million shortfall across 2025-26 for registration activities. It says this is because the Commission is not charging for audit-related travel expenses, pre-screening activity or activities related to refusing an application or renewal. 

Long-term modelling indicates the shortfall will increase four-fold to $12 million by 2028-2029.