Arthur Koumoukelis

Arthur heads Dentons Australia’s national aged care and retirement village practice group.  Since 1995, he has developed a specialist knowledge and practice in those industries. Since 2011 he has been consistently named as Best Lawyer in Aged Care and Retirement Villages law. He advises operators and providers on all aspects of their corporate structure, acquisitions, regulations, contractual and, commercial matters including resident issues.

Arthur will present Accessing equity in RADs and independent living for residents and a Post CDC World.

For operators, every RAD adds to the Government’s liability leading to calls for greater protection and remain limited in its use. In retirement villages, the use is more loose but the protection mechanism is there. From the residents’ point of view, a RAD in aged care or lump sum in villages impacts the means tested care fee but is otherwise ‘dead’ money that cannot be accessed to fund other costs of ageing while still remaining restricted. Sale of the home remains the most common way to buy in but as equity in homes falls, that is a challenge. Residents continue to face challenges to fund care services.  Various strategies exist to assist residents such as third parties paying for RADs and deposits to secure payment. This presentation will discuss for aged care and villages:

  • what is the nature of the ’equity’ residents actually hold
  • what is its security held
  • current forms of assistance – third party (family etc) loans; ‘probate’ issues
  • products that have been developed and could be developed to aid provider growth and assist consumers to access care services more efficiently,
  • Government’s response to current products and legislative changes needed
  • the role of providers to innovate in their financial model and contracts to assist residents to release their equity


Government says ‘people want live at home with CDC’.  Recent reforms provide an opportunity for more and new entrants into home care. The greater competition in home care is a challenge but not as great as for aged care and village operators to make their product more appealing as the low penetration rates show. Part of problem is the financial models used in villages and aged care. The opportunity the reforms present is the chance to redefine ‘the home’ and make entry more affordable and reflective of resident capacities to pay. Aged care talks in terms of RADs and DAP.  Villages talk in terms of ingoing contributions and DMFs and capital gains.  In terms of ‘base’ services aged care has resident fees and villages have recurrent charges.  All operators are looking to recover more from residents on ‘user pays’ but the Government is against more costs to residents on top of the ‘base’ or ‘normal operations’ of facilities.

This presentation will discuss:

  • explore the Government’s reaction to deductions and additional services;
  • deconstruct the financial models in retirement villages and aged care
  • the interplay of home care reforms and the financial models
  • the restraints on residents to pay more
  • alternatives for operators and the need to change the financial model to make it affordable for people to move in.

Tuesday Concurrent C1: Finance Solutions – Funding Growth and Options, 12.00pm-12.30pm