Supplying home care packages

Recent changes in aged care now give more choice to older consumers who wish to remain in their own home for longer.

All home care packages funded by the Australian Government are now provided directly to consumers rather than allocated to a provider. This funding model is known as Consumer Directed Care. It allows consumers more control over the type of care and services they have access to.

All businesses that provide goods and services, including home care packages, must comply with the Australian Consumer Law. The ACL helps ensure all businesses compete fairly and that consumers get what they pay for.

The ACL applies in addition to the Australian Government’s competition laws and aged care laws.

Be honest, clear and upfront

If you offer home care packages, it is important that you provide information accurately, clearly and honestly. You should also give consumers time to make a decision with all the information provided.

Providers that don’t do this risk being considered as engaging in misleading or deceptive conduct.

Misleading or deceptive conduct is an offence under the ACL. This provision is very broad and is designed to capture bad faith behaviour.

Examples in the home care sector might include:

• misleading claims or statements about your home care services or prices
• misleading claims about a consumer’s legal rights
• deceiving a consumer about the benefits of using your services or products
• not telling a consumer important information
• hiding important information in small print
• using overly complex language so that important information is not clear.

A statement made to a consumer does not have to be false to be considered misleading. Read more about making false claims about products or services.

Selling door-to-door or over the phone

Approaching consumers without invitation, either by phone or by visiting them at home, to sell goods or services is called unsolicited selling. You must follow additional rules under the ACL to conduct unsolicited selling.

These include:

• when you can contact the consumer (permitted hours)
• information you must provide (disclosure)
• requests to leave
• information you must provide in the sales agreement
• cooling-off periods.

Read more about rules door-to-door salespeople must follow.

Contracts or agreements

Home care agreements should be clear and easy to understand. The agreement should outline:

• how and when services will be provided
• costs and fees
• any conditions that may apply to the agreement, including exit payments and conditions.

Give consumers time to read the agreement, ask questions and seek advice from a family member, advocate or other support person.

Never rush or pressure a consumer to make a decision or sign a contract.

Supplying home care services may include dealing with vulnerable consumers. It is important to consider whether any extra steps should be taken to ensure you treat them fairly.

It is against the law to engage in conduct that is unethical, oppressive or particularly harsh towards a consumer. This is called unconscionable conduct.

Read more about unfair business tactics.

Unfair terms in standard form contracts

An agreement or contract should outline the rights and responsibilities of the provider and the consumer.

You may offer the same or similar contract to all your customers, these are called standard form contracts. There are laws that protect consumers from unfair terms in standard form contracts.

A contract term may be ‘unfair’ if it:

• gives you more rights than the consumer or the consumer too much responsibility
• includes terms that might benefit you but are not needed to protect your business
• causes loss to the consumer (financial or non-financial).

Read more about unfair contract terms.

Consumer guarantees

The law automatically gives consumers rights when they buy goods and services. When supplying home care packages to consumers, you should make sure the goods or services you deliver meet the needs of the consumer.

When supplying services, the law says that you guarantee that they:

• are provided with due care and skill
• are fit for a specific purpose
• will be supplied within a reasonable time.

You must provide a remedy if you fail to meet a consumer guarantee. Depending on the circumstances this may be providing a service again, offering a refund or cancellation.

Read more about consumer guarantees that your products or services must meet.

Supplying safe goods

When supplying goods for home care services, you must ensure they are safe for use.

Read more about your product safety obligations.

Business rights and protections

If you have agreements in place with other subcontracted businesses to provide home care services, it is important to note that the ACL responsibilities will apply to both your business and the subcontracted business.

Read more about working with other businesses.

Competing fairly

As consumers now have more control over their home care needs, more businesses are providing home care services, resulting in more competition in the industry.

Competition laws help all businesses compete fairly and they outline how businesses in Australia must deal with their competitors, suppliers and customers.

It is important for suppliers who service the aged care sector to understand what practices to avoid under the Competition and Consumer Act 2010(CCA). The Australian Competition and Consumer Commission enforces compliance with the CCA.

Read more about anti-competitive behaviour.

More information

Department of Health
Provides more information about aged care legislation and funding.

Australian Aged Care Quality Agency
Provides more information about the aged care quality standards.

Australian Competition and Consumer Commission (ACCC)
The ACCC has produced a guide to help you understand your business rights and obligations under the competition and consumer law.

Home care services – your business rights and obligations is available online or you can order a hard copy.