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The Aged Care Quality and Safety Commission are currently consulting on the New Financial and Prudential Standards - Closes 7 March 2025

New Financial and Prudential Standards will commence with the introduction of the new Aged Care Act from 1 July 2025. They set out the minimum requirements for good financial and prudential management for providers. They are also designed to manage risks to people receiving care and the public.

The proposed Standards replace the current 4 Standards with 3 updated Standards:

1. Liquidity Standard, where providers must have enough liquid assets to meet their financial responsibilities. Liquid assets are assets that can be quickly turned into cash.
2. Financial and Prudential Management Standard, which makes sure that providers have governance systems and strategies to manage their finances well.
3. Investment Standard, where providers must choose, manage and monitor investments responsibly.

Other key changes in the proposed Standards include:

• a minimum amount of liquid assets for residential aged care providers
• home care providers needing to meet the Financial and Prudential Management Standard.

They encourage you to have your say:

• Read the new Financial and Prudential Standards guidance for providers.
• Read the Financial and Prudential Standards – consultation draft – this is the latest version of the draft legislation which outlines the proposed requirements for providers.
• Give your feedback. You can:
  • complete a survey with your feedback
  • provide your feedback by making a written submission to New_FP_Standards@agedcarequality.gov.au.

Consultation closes midday AEDT on 7 March 2025.

More information

• Visit the new Financial and Prudential Standards webpage.
• Read the February Compliance Management Insights blog.
• Download the new Financial and Prudential Standards poster.
• Email us New_FP_Standards@agedcarequality.gov.au.