The Accommodation
Historically, accommodation for the senior market has been categorised according to the level of health care provided. The six main levels of senior accommodation in Australia are:
a) Independent Living Units (“ILUs”);
b) Serviced Apartments (“SAs”);
c) Respite Care;
d) Supported Residential Services (“SRS”);
e) Low Care (“Hostel”); and
f) High Care (“Nursing Home”).
Independent Living Units and Serviced Apartments comprise the accommodation generally available in Retirement Villages.
Retirement Villages are regulated by applicable State legislation such as the Retirement Villages Act 1986 (Vic) applicable in Victoria.
This Act is designed to clarify and protect the rights of residents by dealing with the overall administration of the retirement village facilities and the information required to be provided to prospective residents.
Supported Residential Services are also governed by applicable State Acts and Regulations. The Health Services Act 1988 (Vic) and the Health Services (Residential Care) Regulations 1991 (Vic) apply in Victoria.
Low Care and High Care accommodation are generally referred to as Hostel and Nursing Home facilities respectively and are generally occupied by residents requiring a high degree of care. The Commonwealth Department of Health and Aged Care is responsible for the regulation of these facilities.
A brief description of each level of senior accommodation is set out below.
Independent Living Units (“ILU’s”) ILU’s are designed for seniors who want to retain their full independence but have access to the security, companionship, facilities and services of a senior living community.
Facilities need to offer attractive, spacious units within a friendly community atmosphere.
While residents enjoy a completely independent lifestyle, they have the assurance that help is always available at the touch of a button by offering the key benefit of 24 hour emergency assistance.
Leisure and social activities are also an important and popular part of a senior living lifestyle and options for residents to choose from include:
- Arts and crafts;
- Bowls;
- Cinema outings;
- Libraries;
- Gardening;
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Outings to local shops and events in the village bus; and A range of visiting services including a doctor, pharmacist, hairdresser and masseur. External maintenance of the unit and community gardens is the responsibility of facility staff. Therefore residents have time to enjoy all the social, cultural and recreational activities and programs available within the community as well as outside interests.
Facilities are self-funded, therefore a weekly service fee contributes to the overall operation of the facility. This fee, which is tied to CPI, covers insurance on the unit and its contents, all external maintenance, all operating costs of the village and in some cases municipal rates.
Serviced Apartments
Serviced Apartments are designed for seniors who require extra care in their day-to-day life or who wish to free themselves of cooking, cleaning and heavy laundry duties.
Residents are able to retain their independence whilst having more time to pursue their own interests and enjoy a range of organized activities and entertainment alternatives.
A weekly service fee covers the provision of all meals, cleaning services, a regular linen service, and maintenance. Some fees are all inclusive, with the exception of private telephone charges whilst some strata-titled facilities are separately rated for municipal charges and metered for utility services.
Purchasing arrangements are on the same basis as independent units and apartments.
Some assisted living serviced apartments can provide rental on a short-term or long-term basis in addition to purchasing options.
Respite Services
Many assisted living serviced apartment facilities are now offering short to medium term rental services in addition to their core level of care. This is often referred to as respite.
This enables people to adjust to any change of lifestyle environment or convalesce after a period of hospitalisation in a comfortable and caring environment without the normal concerns of everyday life.
Home-based carers, usually family members, find this service convenient when they need to take a short break from caring for seniors.
Quite often seniors decide, after a period of respite care, to move into an assisted living serviced apartment on a permanent basis to alleviate the stresses of household living and for the lifestyle and companionship offered.
Supported Residential Services (“SRS”)
An SRS is designed for seniors who have limited capabilities to cope with day-to-day living.
A weekly service fee covers the provision of a higher level of direct care than is provided in assisted living serviced apartments, as well as all meals, cleaning services, a regular linen service, building and garden maintenance. Purchasing arrangements are generally the same as for assisted living serviced apartments.
Residents do not require an assessment from Aged Care Assessment Services to enter supported residential accommodation.
Supported residential services are governed by the Health Services (Residential Care) Act 1988 (Cth).
Low Care (Hostels)
Low care facilities are designed for seniors who have been assessed by Aged Care Assessment Services and deemed to be in need of low care assistance.
Hostels provide an excellent specialist care and support structure. As hostels are partially government-funded, entry costs are dependent on many factors including the individual’s assets.
Most residents are required to pay a bond to enter a hostel facility. Hostels are required to have a percentage of concessional places available to financially disadvantaged people.
Weekly accommodation fees are set by the Commonwealth Department of Health and Aged Care and are also structured according to the individual’s income.
In addition to the services provided in assisted living serviced apartments and supported residential services, hostels also provide personal care such as diet, hygiene, medication and mobility assistance.
High Care (Nursing Home)
Nursing Homes are government-funded and provide quality nursing care support for those who need a high level of care and assistance.
Potential residents are selected by the Aged Care Assessment Services and pay a weekly fee determined by the Commonwealth Department of Health and Aged Care.
The Aged Care Assessment Service (ACAS) has the responsibility of deciding who is eligible for high and low care accommodation. A person’s physical, mental and social situation is assessed.
Regulatory Framework - Independent Living Units and Serviced Apartments
The principal legislation governing senior living communities (Independent Living Units and Serviced Apartments) are various State Acts which clarify and protect the rights of persons who live in, or wish to live in, senior living communities.
These Acts deal, among other things, with residents’ rights, the overall administration of retirement village facilities and the information which must be provided to prospective residents of senior living facilities.
Government Regulations - Low Care and High Care and Accreditation
In 1998, the Commonwealth Government introduced a new quality assurance system for residential care, designed to improve the quality of residential care in Australia.
A system of accreditation, which measures the quality of care and services provided to an aged care resident, applies to all residential aged care services.
Accreditation is linked to Government funding and service providers will not receive Government subsidies unless they are accredited. To gain accreditation, each service has to:
- demonstrate high quality personal care;
- have a safe building; and
- be committed to protecting residential rights.
The Aged Care Standards and Accreditation Agency started operation in 1998 to manage the accreditation process, promote and encourage better quality care and refer poor quality services to the Commonwealth to ensure appropriate action is taken.
Certification
The Commonwealth also introduced a quality improvement process focussed specifically on the widely recognised need to improve the physical standard of residential aged care buildings. This process, called certification, is also linked to the service provider’s revenue; service providers that are certified can ask residents to contribute accommodation payments, under certain conditions.
To achieve certification, a residential care facility is inspected to determine if it meets certain minimum building standards relating to fire safety, security, access, hazards, lighting, heating, cooling and ventilation.
Legislation - Aged Care Act 1997 (Cth)
The residential care program is administered under the Aged Care Act 1997 (Cth) that came into effect on 1 October 1997. The Act governs all aspects of the provision of residential care, flexible care and community care packages to older Australians. The Act clearly sets out matters relating to the planning of services, the approval of service providers and care residents, payments of subsidies, and responsibilities of service providers. There are also a number of sets of principles, which provide further detail regarding the matters set out in the Act.
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