Aged care – correction to resident status 065-22022446

The System for the Payment of Aged Residential Care (SPARC) is the legacy aged care payment system for residential care. SPARC is a view only system from 11 August 2022.

To view the legacy SPARC process, see the historical version.

The care recipient’s resident status (for example, low means or not low means) determines the fee structure including accommodation costs. It is set based on the care recipient’s circumstances on the date they enter permanent care. See Aged care means assessment.

Once the resident status is determined and fees set in the Aged Care Staff Portal (ACSP), initial fee letters are issued. Initial fee letter advise the care recipient of their aged care fees which include accommodation payment arrangements.

See Aged care letter codes and descriptions for details of letters sent.

Pre 1 July 2014 Resident Statuses

• Concessional or Fully Supported
• Basic daily care fee (BDF)
• Assisted or Partially Supported
• Basic daily care fee (BDF)
• Accommodation Bond or Daily Accommodation Charge - depending on level of care or extra service status
• Income tested care fee (ITF or ITCF) - depending on income
• Neither Concessional or Assisted or Not Supported
• Basic daily care fee (BDF)
• Accommodation Bond or Daily Accommodation Charge - depending on level of care or extra service status
• Income tested care fee (ITF or ITCF) - depending on income

Post 1 July 2014

• Low means status
• Basic daily care fee (BDF)
• Accommodation contribution (MTC or AC), and
• Means tested care fee (MTCF or MTF) for care recipients with increase in means over the thresholds
• Not low means status
• Basic daily care fee (BDF)
• Accommodation payments, and
• Means tested care fee (MTCF or MTF) - depending on means (income and assets)

If a reassessment of income and/or assets from the date of entry into permanent care, changes the care recipient’s resident status, the Aged Care Payment Systems:

• adjusts the fees for the care recipient
• either from an ad hoc review or at the next quarterly review (QR)
• calculates any refunds due at the next QR
• adjusts subsidies and supplements paid to the provider in their monthly claim. This is from the month the resident status correction updates in the Aged Care Payment Systems
• for example, where a resident status correction occurs 15 May, the subsidy and supplement adjustment will occur from 1 May. This is when the May claim is lodged from 1 June onwards
• does not automatically send new initial fee letters

When the resident status changes to not low means due to reassessment of income and/or assets, the care recipient is not entitled to any assistance with their accommodation costs. The service provider is not eligible to receive an accommodation supplement payment for that care recipient.

If the change in resident status is identified:

• at QR:
• a new initial fee letter is manually sent to advise the care recipient and provider of the corrected resident status
• the care recipient is liable to negotiate their own accommodation costs
• outside of QR:
• a request for a manual letter is escalated to QR skill tagged staff for completion
• a Means tested care fee (MTCF) is not backdated

When the resident status changes to low means due to reassessment of income and/or assets, the care recipient may be eligible to receive assistance with their accommodation costs from their date of entry.

If the change in resident status is identified:

• at QR, a new initial fee letter is manually sent to advise the care recipient and providers of the corrected resident status. The care recipient is:
• eligible for assistance with their accommodation costs, and/or
• required to pay an accommodation contribution from date of entry which will be manually calculated
• outside of QR:
• any accommodation contribution will be backdated to the date of entry into care
• a manual calculation will need to be completed to determine any liability

If a new or reassessment of assets (effective on the date of entry into permanent care), changes the care recipient’s resident status, the Aged Care Payment Systems:

• requires a manual update of the changed assessed assets amount
• adjusts any accommodation charge for a care recipient
• adjusts subsidies and supplements paid to the provider in their monthly claim from the month the change updates in the Aged Care Payment Systems. For example, where a resident status correction occurs on 15 May, the subsidy and supplement adjustment will occur from 1 May. This is when the May claims is lodged from 1 June onwards
• may automatically send a letter advising of daily accommodation charge changes

See also, Aged Care means assessment - Residential Care pre 1 July 2014 - assets assessment.