ACA Ch 3. No. 5/2007
EXPLANATORY STATEMENT
AGED CARE ACT 1997
Paragraph 44-19 (1)(b)
Determination of Adjusted Subsidy Residential Care Services
Paragraph 44-19 (1)(b) of the Aged Care Act 1997 provides for the Minister to determine in writing that a residential care service, or part of a residential care service through which the care is provided, is an adjusted subsidy residential care service.
Individual places subject to the adjusted subsidy reduction are identified by the type of provider that originally owned the service. Historically, the Australian Government made lower payments to aged care homes operated by State and Territory Governments. This was because there is a presumption that these Governments facilitate the provision of care by accessing their own sources of capital funding.
The reductions in subsidy apply regardless of whether or not the services or parts of services remain with State Governments, or are transferred to other providers, for example, those in the private, charitable, community-based, local government or religious sectors.
A new determination is made periodically to reflect changes to adjusted subsidy residential care services. Such changes may occur if residential care places are relinquished, transferred to another provider, or if the name of a service changes.
A separate determination is made annually to determine the actual rate of the adjusted subsidy.
The Office of Best Practice Regulation (OBPR) was earlier consulted in regard to determinations of this nature. OBPR has agreed that these determinations are minor or machinery in nature, therefore a Regulation Impact Statement is not required.
No consultation with industry or stakeholders was necessary as this determination is purely to update the list of Adjusted Subsidy Residential Care Services as a result of a measure announced in the package of reforms Securing the future of aged care for all Australians.