As a registered provider, it’s a condition of your registration to comply with the Financial and Prudential Standards that apply to you.
There are 3 standards:
- Financial and Prudential Management Standard
- Liquidity Standard
- Investment Standard.
These standards replace the former Prudential Standards (Governance, Disclosure, Records and Liquidity).
Who the Financial and Prudential Standards apply to
All providers need to meet the Financial and Prudential Standards for their registration categories from 1 November 2025.
Non-government multi-purpose service providers must also comply with these standards.
The Financial and Prudential Standards don’t apply to:
- government organisations
- local government authority providers, including government multi-purpose service providers.
Supporting good governance and care
There’s a clear link between a provider’s financial health and the wellbeing, safety and quality of life of older people in their care.
The Financial and Prudential Standards set clear expectations for how providers need to manage their finances. They’re designed to support strong governance, financial sustainability and quality aged care.
They help make sure providers:
- make financial decisions that put the safety and wellbeing of older people first
- have enough funds to meet financial obligations
- use refundable deposits only for permitted uses
- have governance systems that monitor and manage financial risk
- protect refundable deposits balances by making sure they manage these funds properly and hold them securely
- comply with their minimum liquidity amount to manage periods of financial stress
- have a governing body that understands how its decisions affect older people’s quality of care and wellbeing.
The Financial and Prudential Standards also build trust in the aged care system and limit financial risks to the Australian Government, including claims on the Accommodation Payment Guarantee Scheme.
Financial viability support and monitoring
We’re responsible for monitoring the finances of registered providers. You can find more information about this on our Financial viability support for aged care providers webpage.
Financial reporting and prudential responsibilities are set out in the:
More information
Read the Financial and Prudential Standards: Guidance for providers.
You can find a summary of the 3 standards in the new Financial and Prudential Standards poster.
Watch the Financial and Prudential Standards overview video.
Download fact sheets for each standard.
Read the legislation which outlines these requirements.
Read the fact sheet for older people on the new Financial and Prudential Standards.
