Ageing Australia’s advocacy has led to lowering of proposed Liquidity Standards, which would have threatened to strangle investment in the sector.
The Aged Care Quality and Safety Commission today announced liquidity ratios of two per cent, rather than the 10 per cent that was proposed, recognising the lower risk associated with independent living and retirement village operators.
“If we’re going to have minimum liquidity standards, as the Royal Commission recommended, we want to make sure they don’t undermine investment,” said Ageing Australia’s General Manager of Policy and Advocacy Roald Versteeg.
“Clearly the figure of 10 per cent would have strangled investment in the sector, which we were able to convey to the Aged Care Quality and Safety Commission in over a dozen meetings, reinforcing our original, evidence-based submission.”
“We also advocated for a clearer alternative method for providers to demonstrate compliance against the Standard, to avoid situations where hundreds of millions of dollars – intended to build more beds – is tied up. It’s great to see that the Commission has responded to these concerns and has clarified this alternative method.”
“This is a win for providers and older Australians alike.”
“The sector needs settings that are future-focused, supporting our capacity to meet the needs of a growing ageing population in coming decades.”
