Key points 

• The Government’s extended COVID-19 Aged Care Support Program closes on 31 January 2023.
• Aged Care providers may be eligible to recover up to 100% of costs of managing the direct impact of COVID-19, with a base level funding cap. The funding cap does not apply to providers who are able to demonstrate exceptional circumstances.
• In the challenging macroeconomic environment faced by the Aged Care section, it is important for providers to maximise their claims on available government funding.

On 22 June 2022, the Federal Government committed an additional $83.4 million to the COVID-19 Aged Care Support Program (Program), bringing the total funding up to $191.5 million, and extended the time for providers to make an application under the Program to 31 January 2023.

What claims are available?

The Program supports approved Residential Aged Care providers, National Aboriginal Torres Strait Islander Flexible Aged Care Providers and Home Care providers with the costs of managing the direct impact of COVID-19, including:

1. additional salary, contractor and hiring costs;
2. purchase of additional equipment including PPE and RAT tests;
3. travel expenditure including accommodation and travel costs for necessary staff and quarantine;
4. training for and managing infection control; and
5.  costs of financial auditing report of project expenditure.

Providers are able to make claims to recover up to 100% of eligible costs incurred as a direct result of residents, staff or clients entering into isolation as a result of a COVID-19 test, even if that result is negative, between 28 May 2021 and 31 December 2022. Other things for providers to have in mind:

1. there is a base level funding cap under the Program;
2. providers who experience exceptional circumstances may make additional claims over and above the funding cap – those providers will need to submit a detailed business case outline demonstrating their exceptional need for funding;
3. providers will need to supply various contractual and financial evidence in support of their application, and those making claims above $150,000 will also need to supply an independent auditing report; and
4. providers are able to make multiple applications prior to the closing date for additional costs not claimed in previous applications.

How can we help?

In the challenging macroeconomic environment faced by the Aged Care sector, it is important for providers to maximise their claims on available government funding.

If your organisation would like any assistance with navigating the grant eligibility criteria, preparing a business case outline, arranging a cost efficient independent auditing report or have any other queries, please feel free to reach out to our team at Dentons.