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    Cost Recovery - Frequently Asked Questions

    FAQS relating to current cost recovery arrangements for accreditation services for residential aged care services.

    For further inquiries about the Australian Aged Care Quality Agency’s cost recovery process contact national@aacqa.gov.au or call our information line on 1800 288 025.

    What is ‘cost recovery’ of accreditation services?

    The Australian Government is applying full cost recovery for the accreditation of residential aged care homes from 19 May 2017.

    The move to cost recovery follows on from measures announced in the 2015/16 Budget applying to the Australian Aged Care Quality Agency. Under the Australian Government’s cost recovery arrangements, Government entities charge individuals or organisations some or all of the costs of a specific government activity which may include goods, services, regulation, or a combination of these.

    How is the cost recovery process informed?

    The costing model for full cost recovery of accreditation services provided by the Quality Agency was informed by an independent review. The fee schedule was largely driven by the number of auditors and the audit duration of accreditation and re-accreditation visits to residential aged care homes. 

    A detailed outline of the Quality Agency’s cost recovery model can be found in the Cost Recovery Implementation Statement (CRIS). This statement is required under the Australian Government Cost Recovery Guidelines (CRGs) which set out the overarching framework under which government entities design, implement and review cost recovered activities.

    For more information on CRGs see the Department of Finance website (www.finance.gov.au).

    Consultation with the sector was open for consultation for a six week period from 6 May 2016.

    Feedback was sought from:

    • Approved providers and other stakeholders via publication on the Quality Agency website and a helpline.
    • the Quality Advisory Group
    • Peak industry associations (Aged and Community Services Australia, Leading Aged Services Australia and the Aged Care Guild).

    Under cost recovery, the Quality Agency will review actual costs against recoveries on an annual basis. The Quality Agency will continue to work with the Department of Health to identify and assess where regulation and accreditation practices can be streamlined and seek policy options that offer the greatest net benefit to consumers, the aged care services sector and broader community.

    Please direct any inquiries on the fees or the CRIS to national@aacqa.gov.au

    What activities do the new fees apply to?

    • Assessment and determination of applications for accreditation of “commencing homes”;
    • Assessment and determination of re-accreditation for a further period for “accredited homes”
    • Assessment and determination of applications for re-accreditation of “previously accredited homes”. 

    What activities aren’t included in accreditation fee schedule?

    Activities involving the Quality Agency that aren’t included in accreditation fee are:

    • compliance assistance, education and training to approved providers of aged care
    • annual unannounced visits
    • case management and visits due to compliance concerns
    • functions related to the registration of quality assessors

    NOTE: Activities promoting high quality care, innovation in quality management and continuous improvement amongst approved providers such as better practice conferences, workshops, and seminars are separately cost recovered and not covered by cost recovery listed earlier.

    What are the key dates?

    The new fees will apply:

    • to applications received from 19 May 2017 for accreditation of commencing homes
    • to applications where accreditation expiry date is on or after 19 May 2017, for reaccreditation of accredited homes, and
      • to applications received from 19 May 2017 for accreditation of previously accredited homes.

    What are the fees? 

    Please see our Accreditation Fees for full fee and payment details.  These apply from 19 May 2017.