You must meet the Governance Standard if you hold refundable deposits from people receiving aged care.
The Standard helps you develop solid systems to hold, invest and refund refundable deposits on time.
It enables you to manage refundable deposits and plan how to use them for permitted uses.
The Governance Standard is set out in:
- 52M-1 of the Aged Care Act 1997
- Fees and Payments Principles 2014 (No.2).
Your governance system needs to make sure that you:
- use balances only for permitted uses
- refund balances on time every time.
You can invest refundable deposits in specific financial products.
If you invest refundable deposits, you need a written investment management strategy.
This will help you recognise and manage the risks that come with investing.
To learn more about the Governance Standard, read the Governance Standard fact sheet.