Higher everyday living (HEL) will replace additional services and extra services under the Aged Care Act 2024 (Cth) (Aged Care Act) and allow providers to charge higher everyday living fees (HELF) for certain services delivered to individuals in a residential care home.

The 2024 Act and the Exposure Draft of the Aged Care Rules 2025 (Cth) (Aged Care Rules) establish the framework for HEL, including the rules relating to fees and agreements.

This update is for residential providers who want to learn more about HEL and understand the key questions they should be considering in the leadup to 1 November 2025.

Key HEL concepts

We explore a number of key concepts below, including some practical examples.

FACS delivered at a higher standard vs additional services connected to a FACS

HEL can be either Funded Aged Care Services (FACS) delivered at a higher standard, or additional services connected to a FACS.

• FACS delivered at a higher standard is where a provider delivers a FACS at a standard that is higher than the standard required under the Aged Care Act, specified in the service list.
• Additional services connected to a FACS is where a provider delivers a service that is not included in the aged care service list, but is incidental to, or capable of enhancing the quality of, a particular FACS on the service list.
  

For example, the service list requires providers to deliver:

• at least 3 meals served each day (including the option of dessert with either lunch or dinner) plus morning tea, afternoon tea and supper, of adequate variety, quality and quantity to meet the individual’s nutritional and hydration needs; and
• a variety of non alcoholic beverages available at all times (such as water, milk, fruit juice, tea and coffee).
  For these items of the service list:
• a FACS delivered at a higher standard might include additional meal options (eg choice of two different meals at lunch and dinner), dessert included with both lunch and dinner, or barista coffee.
• an additional service connected to a FACS might include alcoholic beverages at meal times.

Standing HEL services vs ad-hoc HEL services

The HEL rules contemplate two types of HEL services, each with its own specific requirements. 

• Standing HEL services are ongoing, until the arrangement is terminated. Bundling of standing services is permitted (rules apply) and there is an annual review required. For example, a provider may offer a bundle of HEL services such as additional food and beverage options, luxury linen and toiletries and a WiFi data pack, with the services being provided on an ongoing basis until the HEL agreement is terminated. 
• Ad-hoc HEL services are not ongoing, they end when the service has been delivered and the individual has paid the relevant HELF. Bundling of ad-hoc HEL services is not permitted and there is no annual review required. For example, a provider may offer personal transport, one off hairdressing or beauty services or special outings (eg bus trips or sporting activities) that are not included in the standard lifestyle schedule.

HEL agreements

There are requirements that apply to all HEL agreements and specific rules that apply depending on the nature of the HEL services.

• For all HEL agreements:
  • the HEL agreement must not be offered or entered into before the individual's start day;
  • the HEL agreement must be in plain language and readily understandable; and
  • it must be a standalone agreement and this includes that the HEL agreement must not be incorporated into a service agreement or an accommodation agreement.
• There are different requirements for FACS delivered at a higher standard or additional services connected to a FACS, for example the detail that the agreement needs to include about the services that will be delivered.
• The rules for standing vs ad-hoc agreements also differ, for example there are different pre-contractual disclosure requirements and a standing HEL agreement must be in writing, whereas an ad-hoc HELA can be verbal or in writing.

These are just some of the HEL agreement requirements. 

Bundling

Bundling of standing HEL services is permitted, however there are rules that apply including pre-contractual disclosure requirements, rules about itemisation and rules about fees (individual and bundled). Bundling of ad-hoc HEL services is not permitted.

Transition from additional services and/or extra services to HEL

There are transitional arrangements to support the changeover from additional services and/or extra services to HEL. Under these arrangements, current additional services and extra service agreements can continue until 31 October 2026.

These are just some of the HEL requirements. There are also rules relating to leave, annual reviews, fee increases, ability for the individual to use the services, variation and termination of agreements and more.

What should providers be considering in the leadup to 1 November?

• Do you currently offer additional services or extra services? If so, you should be considering how and when to transition residents onto HEL agreements and what the new arrangements mean for the services you have been providing – are they all permissible under HEL? What should you be communicating to residents, and when? Can you charge an increase to additional services or extra service fees during the transition time? How do the new rules differ under HEL?
• Are you offering, or thinking about offering, a bundle of HEL services? If so, you should be considering what services can be included in the bundle (including FACS delivered at a higher standard or additional services connected to a FACS) and what systems you will need to implement to meet the new requirements such as how you monitor individual's ability to use services and the process for annual review. You will need to consider your pricing. You will also need a standing HEL agreement that allows for bundling.
• Do you currently allow residents to access one-off services from time to time and charge them to their account? For example, hairdressing services or the cost of a staff member to accompany them to an appointment. If so, you will need to consider the rules for ad-hoc HEL services and you should also have an ad-hoc HEL agreement available for these and other ad-hoc services. 
• Are you unsure about how to communicate your HEL offering to prospective residents, including when you can talk to them about your HEL offering? The HEL agreement must not be offered or entered into before the individual's start day, so how will you manage this in practice? What information can you give to prospective residents before they enter the home?

If you answered yes to any of these questions, or you are otherwise interested in learning more about HEL, Thomson Geer's HEL resources provide a compliant framework for implementing HEL:

• Higher Everyday Living policy
• Higher Everyday Living Fact Sheet (external document for residents)
• Higher Everyday Living Q&A (internal document for registered providers and aged care workers)
• Higher Everyday Living Agreement – standing
• Higher Everyday Living Agreement – ad-hoc

We are offering these documents as a bundle for a discounted price of $5,000 + GST.

Click here to access our latest price list for residential care including our HEL bundle and contact us at tgagedcareevents@tglaw.com.au if you would like to purchase any of the documents or if you need any tailored advice.