Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

We won't be supporting this amendment. The Aged Care Bill introduces a new requirement for providers to deduct and retain a small amount from a RAD. The retained amounts are intended to provide immediate improvement to sector financial viability. This change also applies to the refundable accommodation contributions, or RAC, which are used by residents that receive support for some but not all of their accommodation.

There is provision in the bill for rules to prescribe the rate of retention, when to deduct retention amounts from a refundable deposit and any other matters relating to the retention amounts. Once the laws are enacted, the rules will prescribe a RAD retention rate of two per cent per annum and will be capped at five years to protect residents who remain in care for a long time. Retention will not apply to the RADs or RACs of residents who enter aged care before 1 July 2025. These changes are in response to the final report of the Aged Care Taskforce.