When providing aged care services, establishing a clear and compliant Service Agreement is not just good practice—it’s a requirement. As outlined by My Aged Care, service agreements play a vital role in safeguarding both the client and the provider by setting expectations and defining responsibilities. At HMSA, we work closely with aged care organisations to ensure their service agreements are compliant, clear, and aligned with sector standards.
A service agreement is a legal document that outlines the care and services an aged care provider will deliver to a person receiving government-funded aged care. This agreement forms the foundation of the provider-client relationship and ensures all parties understand:
What services will be provided
The cost of those services
When and how services will be delivered
Rights and responsibilities of both the provider and the client
The agreement must be in line with the Aged Care Act 1997 and the Aged Care Quality Standards.
According to My Aged Care, service agreements are essential because they:
Ensure transparency and accountability
Help prevent disputes or misunderstandings
Provide a clear record of the consumer’s choices and preferences
Support compliance with legal and funding requirements
In other words, a well-drafted agreement protects everyone involved.
Your service agreement should include the following key elements:
Details of the provider and the client
Description of services to be provided (e.g., domestic assistance, personal care, nursing)
Fees and charges, including any out-of-pocket costs
Schedule of services (e.g., days, times, and frequency)
Client rights and responsibilities under the Charter of Aged Care Rights
Termination and complaint handling processes
Consent provisions for sharing information
This list is not exhaustive, but these components are considered essential by My Aged Care and the Department of Health and Aged Care.
Through our work with aged care providers, HMSA has identified common mistakes in service agreements, such as:
Using outdated templates that don’t reflect current compliance requirements
Failing to individualise agreements to reflect the client’s care plan
Omitting key legal protections, such as privacy and consent clauses
Not providing the agreement in a format the client can understand (especially where Easy Read formats are needed)
To improve your service agreement process, we recommend:
Reviewing your agreement templates annually to reflect legislative updates
Ensuring all agreements are signed and dated by both parties before services commence
Providing a copy of the agreement to the client and their representative
Offering Easy Read or translated versions for clients with diverse communication needs
Maintaining a digital record for compliance audits
At HMSA, we assist aged care providers with the development, review, and implementation of compliant service agreements. Whether you're establishing new templates or auditing your current documentation, we ensure alignment with My Aged Care guidelines and best practices.
We also offer easy-to-customise digital templates and workflow support to streamline your onboarding process and reduce risk.
My Aged Care – Your Service Agreement
Charter of Aged Care Rights
Aged Care Quality Standards
Get in touch with HMSA for expert guidance tailored to the aged care sector.
📧 info@hmsaustralia.com.au
🌐 www.hmsaustralia.com.au