Please note, this website collectively refers to refundable accommodation deposits, refundable accommodation bonds and entry contributions as refundable deposits.
Overview of provider prudential responsibilities
Approved providers of residential and flexible aged care who hold a refundable deposit are required to comply with prudential responsibilities that are set out in the Aged Care Act 1997 (the Aged Care Act) and the Fees and Payments Principles 2014 (No.2) (the Fees and Payments Principles). In particular:
- responsibilities of approved providers (section 56-1 and section 56-2 of the Aged Care Act)
- managing refundable deposits(Part 3A.3 of the Aged Care Act and Parts 6 and 7 of the Fees and Payments Principles)
- the Prudential Standards (Part 3A.3 of the Aged Care Act and Part 5 of the Fees and Payments Principles).
The Commission seeks to ensure that all approved providers that hold refundable deposits are meeting the regulatory requirements of the Prudential Standards.
There are 4 Prudential Standards (the Standards).
Provider reporting requirements
Providers have a number of reporting obligations under the Accountability Principles 2014. You must lodge your Quarterly Financial Report (QFR), Aged Care Financial Report (ACFR), Annual Prudential Compliance Statement (APCS) and General Purpose Financial Report (GPFR) in a timely manner to meet your responsibilities as an approved provider.
Key dates for 2022–2023
|Reporting obligation||Period covered||Reporting date||Who||Audited|
|ACFR, including APCS and the GPFR||July 2021–June 2022||31 October 2022 (for most approved providers unless prior approval received from the Secretary of the Department of Health and Aged Care)||All approved providers||Yes|
|Quarterly Financial Report 1||Quarter One (July to September 2022)||4 November 2022||All approved providers||No|
|Quarterly Financial Report 2||Quarter Two (October to December 2022)||15 February 2023||All approved providers||No|
|Quarterly Financial Report 3||Quarter Three (January to March 2023)||5 May 2023||All approved providers||No|
|Quarterly Financial Report 4||Quarter Four (April to June 2023)||4 August 2023||All approved providers||No|
Targeted Reviews and Prudential Reviews
The Commission will also engage with approved providers through Targeted Reviews and Prudential Reviews.
Targeted Reviews aim to educate and raise awareness within the sector on a specific prudential requirement, while the Commission carries out Prudential Reviews with specific providers to review and improve their understanding of the Prudential Standards.
Compliance and enforcement activity is conducted in line with the Commission’s Compliance and Enforcement Policy.
December 2020: Targeted Review Refunding Refundable Deposits National compliance report
Between November and December 2020 the Commission reviewed a random sample of approved providers across Australia to assess their understanding of refunding obligations, liquidity management systems and the Liquidity Standard requirements.
This enabled the Commission to identify areas of concern and deliver targeted education and support for providers to help them improve their compliance.
- Prudential Standards fact sheet
- Prudential targeted campaign – national compliance report
- Governance Standard fact sheet
- Investment management strategy fact sheet
- Liquidity Standard fact sheet
- Disclosure Standard fact sheet
- Financial and Prudential Reporting Responsibilities fact sheet
- Refunding refundable deposit balances fact sheet
- Department of Health and Aged Care financial reports