From HELF to pricing caps: Planning insights for Aged Care providers

December 13, 2024 | Aged Care Management

The aged care sector in Australia is no stranger to change. Since the Royal Commission into Aged Care Quality and Safety, providers have navigated waves of reform, grappling with Volatility, Uncertainty, Complexity, and Ambiguity (VUCA) at every turn. With the introduction of the new Aged Care Act and standards from July 2025, alongside shifts in accommodation pricing and service frameworks, the next chapter promises more of the same.

So, how do providers prepare when not all the pieces of the puzzle are in place? The answer lies in proactive, adaptable planning.

From January 1, 2025, the maximum price cap for undocumented accommodation will rise from $550,000 to $750,000. While this creates new opportunities, it also raises questions about affordability, demand, and competitive positioning. Just six months later, on July 1, 2025, the introduction of Higher Everyday Living Fees (HELF) will replace Extra Services (ESS) and Additional Services (AS), prompting providers to rethink their pricing models, service offerings, and resident engagement strategies. These changes are occurring alongside the shift to Support at Home, details of which remain under wraps.

This evolving regulatory landscape demands foresight and agility. Providers who fail to plan risk being caught off guard, while those who prepare thoughtfully can seize opportunities and mitigate challenges.

Planning in a VUCA environment doesn’t mean waiting for all the answers to emerge—it means preparing as much as possible and being ready to pivot when new information arrives.

Here’s how to approach it:

Understand what you know
Begin by analysing the confirmed changes. For instance, what does the accommodation pricing cap mean for your business model? How will the HELF framework impact your service delivery and financial viability? Establishing a clear understanding of what is known allows you to identify priorities and set preliminary goals.
Anticipate what you don’t know
For unresolved details, such as the specific rules of the Aged Care Act or the finer points of Support at Home funding, consider possible scenarios. Develop contingency plans that allow for flexibility. For example, how might different funding models affect staffing, technology investments, or service offerings? Scenario planning ensures you’re not starting from scratch when clarity arrives.
Invest in capabilities
Change often requires new skills, systems, or processes. Consider areas where you might need to upskill staff, upgrade technology, or streamline operations. Investing early in these areas builds resilience and readiness for whatever comes next.
Engage with external experts
Navigating change is easier when you can draw on broader industry insights. Experienced advisors, particularly those who have guided providers through transitions like AN-ACC, bring valuable perspectives. They can share lessons from other providers, helping you avoid pitfalls and adopt good practices faster.
Foster a culture of adaptability
Encourage your team to embrace change by involving them in planning processes. Transparent communication about what’s coming—and the organisation’s strategies to address it—builds confidence and collective focus.

While it’s tempting to delay action until all the details are available, waiting can lead to rushed decisions and missed opportunities. Planning ahead allows you to manage what you can now while remaining prepared to act swiftly when uncertainties resolve. For instance, thinking through the implications of HELF early will position you to make informed pricing decisions when rules are clarified. Similarly, identifying operational inefficiencies now can free up resources for future investments, whether in technology, staff training, or new service models.

In an environment as dynamic as aged care, planning is your strongest tool. It gives you the confidence to navigate uncertainty, the agility to adapt to change, and the foresight to seize new opportunities. By taking deliberate steps now, you’ll ensure your organisation is not just surviving but thriving as the sector continues to evolve.

If you’d like support with aged care reform transition planning, get in touch for a confidential conversation