Accreditation Grant Amendment Principles 2004 (No. 1)
I, JULIE BISHOP, Minister for Ageing, make these Principles under subsection
96-1 (1) of the Aged Care Act 1997.
Dated 25 June 2004
JULIE BISHOP
Minister for Ageing
1 Name of Principles
These Principles are the Accreditation Grant Amendment Principles 2004 (No. 1).
2 Commencement
These Principles commence on 1 July 2004.
3 Amendment of Accreditation Grant Principles 1999
Schedule 1 amends the Accreditation Grant Principles 1999.
Schedule 1 Amendments
(section 3)
[1] Subsections 2.6 (2) to (6)
substitute
(2) An application made on behalf of a residential care service that is not a commencing residential care service must be accompanied by a fee that is the sum of:
(a) $3 111; and
(b) the lesser of:
(i) $97 for each residential care place allocated to the service; and
(ii) $9 690.
Note The amounts specified in this subsection are subject to increase under section 2.8A.
(3) An application made on behalf of a commencing residential care service must be accompanied by a fee that is 20% of the fee that would have been payable if subsection (2) applied to the service.
[2] Section 2.7 — amendments of fees
Provision | omit | insert |
Subsection 2.7 (1) | $300 | $306 |
Subsection 2.7 (2) | $1,500 | $1 530 |
Paragraph 2.7 (3) (a) | $1,500 | $1 530 |
Paragraph 2.7 (3) (b) | $500 | $510 |
Paragraph 2.7 (4) (a) | $1,500 | $1 530 |
Paragraph 2.7 (4) (b) | $500 | $510 |
[3] Section 2.7, at the foot
insert
Note The amounts specified in this section are subject to increase under section 2.8A.
[4] After section 2.8
insert in Division 2
2.8A Indexation
(1) In this section:
CPI number means the All Groups Consumer Price Index number (that is, the weighted average of the 8 Australian capital cities) published by the Australian Statistician.
earlier CPI number, for a financial year, means the CPI number for the last March quarter before the beginning of the financial year.
indexable amount, for a financial year, means:
(a) an amount of dollars specified in section 2.6 or 2.7; or
(b) if that amount has previously been increased under this section — the increased amount applying in the financial year.
latest CPI number, for a financial year, means the CPI number for the March quarter in the financial year.
(2) If, for a financial year beginning on or after 1 July 2004, the latest CPI number is more than the earlier CPI number, each indexable amount is increased on 1 July of the next financial year.
Note The first increase of each indexable amount is on 1 July 2005.
(3) The increased amount is the amount worked out in accordance with the formula:
(4) If, apart from this subsection, an indexable amount increased under this section would be an amount of dollars and cents, the amount is to be rounded to the nearest whole dollar and, if the amount to be rounded is 50 cents, rounded down.
(5) If, at any time, whether before or after the commencement of these Principles, the Australian Statistician publishes a CPI number in substitution for a CPI number previously published, the publication of the later CPI number is to be disregarded for this section.
(6) However, if, at any time, whether before or after the commencement of these Principles, the Australian Statistician changes the reference base for the Consumer Price Index, then, in applying this section after the change is made, regard is to be had only to numbers published in terms of the new reference base.
Overview
The Accreditation Grant Amendment Principles 2004 (No. 1), enacted by the Minister for Ageing, Julie Bishop, aim to revise the Accreditation Grant Principles of 1999 under the Aged Care Act 1997. This legislative instrument seeks to address issues related to the financial aspects of accreditation for residential care services, ensuring that fees and charges are up to date and reflective of current economic conditions. These Principles were designed to provide a more structured and financially sustainable framework for the accreditation process within the aged care sector. The policy objective is to facilitate a fair and effective accreditation system that can adapt to economic changes while maintaining high standards in the provision of aged care services. The legislation was enacted to ensure that the financial burden on service providers is equitable and that the fees are indexed to reflect inflation, thus maintaining the integrity and accessibility of quality aged care.
Scope and Application
The Accreditation Grant Amendment Principles 2004 (No. 1) apply to residential care services, specifically modifying the fees associated with applications for accreditation grants under the Aged Care Act 1997. These Principles, made by the Minister for Ageing, Julie Bishop, came into effect on 1 July 2004, and they amend the Accreditation Grant Principles 1999 to adjust the financial requirements for both commencing and existing residential care services. For services that are not starting anew, the fee structure now includes a base amount of $3,111, plus a lesser amount calculated at $97 per residential care place or a maximum of $9,690. Conversely, for commencing residential care services, the fee is set at 20% of the amount calculated under the new structure for established services. Additionally, the fees outlined in these Principles are subject to annual adjustments based on changes in the Consumer Price Index, ensuring that the financial requirements remain reflective of the current economic conditions.
Key Provisions
The Accreditation Grant Amendment Principles 2004 (No. 1) amends the Accreditation Grant Principles 1999, introducing specific fee requirements for applications submitted on behalf of residential care services. Under these principles, an application made on behalf of a residential care service that is not a commencing service must be accompanied by a fee, which is the sum of $3,111 plus the lesser of $97 for each residential care place allocated to the service or $9,690 (subsection 2.6(2)). This fee is subject to increase in line with inflation as outlined in section 2.8A. In contrast, an application for a commencing residential care service must be accompanied by a fee that is 20% of the fee that would have been payable under subsection 2.6(2) (subsection 2.6(3)).
These principles also revise the fees associated with various applications to ensure they reflect current economic conditions. For example, the fee for certain applications has been increased from $300 to $306, from $1,500 to $1,530, from $500 to $510, and so on (subsection 2.7(1)-(4)). These adjustments are intended to maintain the financial integrity of the application process while accounting for inflation. It is also noted that these amounts are subject to future increases as per section 2.8A.
The principles impose obligations on applicants to ensure they include the correct fees with their applications. Failure to comply with these fee requirements could result in the application being considered incomplete or invalid. The legislation does not explicitly state any criminal or civil penalties for non-compliance with these fee provisions, but it is reasonable to infer that the application might be rejected, and the applicant may need to resubmit it with the correct fee, potentially incurring additional administrative costs.
The principles further include provisions for indexation (section 2.8A), ensuring that the fees are adjusted annually based on the Consumer Price Index (CPI) to account for inflation. This indexation mechanism ensures that the fees remain fair and relevant over time. The CPI numbers are published by the Australian Statistician, and the indexation is triggered if the latest CPI number for a financial year exceeds the earlier CPI number from the previous financial year. The first increase under this provision is scheduled for 1 July 2005. If the indexation results in a fee amount with cents, it must be rounded to the nearest whole dollar, with a half-cent rounding down (subsection 2.8A(3)-(5)).