About extra service fee approvals
If you are a residential aged care provider and want to change your extra service fee, you must apply to us for approval. If you have previously received approval, we cannot decide on your new application until 12 months after that approved amount took effect.
What are extra service fees?
Extra service fees are what approved providers of residential aged care charge for ‘bundles’ of extra services.
Extra services involves the provision of a significantly higher than average standard of services. This can include:
- a higher standard of accommodation
- a wider range of higher-quality food
- better non-care services such as recreational and personal interest activities.
You can only offer extra services if you are a provider with extra service status.
If you have questions about extra services or extra service status, contact the Department of Health and Aged Care. They are responsible for managing the extra service status program.
When extra service fees need approval
You must apply for approval if you want to increase your extra service fee.
If you want to suspend your extra service status and stop charging extra service fees, contact the Department of Health and Aged Care. We do not handle these requests.
Learn more about the application and approval process.
Why extra service fees need approval
You must apply for approval so we can make sure:
- any increase is no greater than the maximum increase allowed
- 12 months have passed since the last approved change took effect
- you have not included the cost of extra services in other fees or amounts.
For full requirements, see:
- Division 35 – How are extra service fees approved of the Aged Care Act 1997
- Part 4 – Extra service fees of the Extra Service Principles 2014.
Maximum increase allowed
The maximum increase allowed is 20% plus the percentage change in inflation over the last 12 months.
We use the All Groups Consumer Price Index (CPI) (weighted average of eight capital cities) as the measure of inflation.
You must apply for approval if you want to increase your extra service fee.
Example
Your current fee is $40 and the percentage change in the CPI is 3.1%. The maximum increase allowed is 23.1% (20% plus 3.1%) of $40, which is $9.24.
Who can apply
Providers with extra service status can apply for approval.
Legislation
- Division 35 – How are extra service fees approved of the Aged Care Act 1997
- Part 4 – Extra service fees of the Extra Service Principles 2014.