EXPLANATORY STATEMENT
AGED CARE ACT 1997 SECTION 44-13
DETERMINATION UNDER SECTION 44-13
(ACA Ch. 3 No. 13/2008)
OXYGEN SUPPLEMENT
Paragraph 44-13(6)(a) of the Aged Care Act 1997 (the Act) provides that the Minister may determine in writing the amount of the oxygen supplement. Paragraph 44-13(6)(b) of the Act provides that the Minister may determine a method for working out the amount of oxygen supplement for a particular day.
An oxygen supplement will be provided where a care recipient needs to use oxygen on a regular and continuing basis. It does not include the provision of oxygen on a short-term, episodic or emergency basis. It is a daily supplement for eligible recipients.
This determination sets the oxygen supplement rate at $9.37 with effect from 1 July 2008 and revokes Determination ACA Ch. 3 No. 10/2007.
The determination also outlines a method for calculating the amount of oxygen supplement to be paid where the actual cost to the approved provider of administering oxygen to the care recipient is equal to, or more than, 125 per cent of the daily rate.
Consultation
Many aged care supplement rates are indexed on 1 July each year. The index for the oxygen supplement is based on the Consumer Price Index.
As the indexation of this supplement uses a well-established formula for indexation, no specific consultation with industry was undertaken with respect to this instrument.
Overview
The Aged Care Act 1997 was enacted to establish a framework for the provision of quality aged care services in Australia. It was introduced to address the need for a comprehensive and effective system to support the elderly population's healthcare needs, ensuring they receive appropriate care and support in their later years. The policy objective of the Act is to provide a sustainable and equitable aged care system that meets the needs of the elderly, focusing on their dignity, choice, and well-being. The determination under section 44-13, effective from 1 July 2008, specifies the oxygen supplement rate at $9.37 for eligible recipients who require oxygen on a regular and continuing basis, excluding short-term, episodic or emergency use. This determination revokes the previous determination ACA Ch. 3 No. 10/2007 and includes a method for calculating the supplement where the actual cost to the provider exceeds 125 per cent of the daily rate. The oxygen supplement rate is indexed annually based on the Consumer Price Index, and no specific consultation was deemed necessary due to the established formula for indexation.
Scope and Application
The Aged Care Act 1997, as amended by the determination under section 44-13, applies to care recipients who require oxygen on a regular and continuing basis, excluding short-term, episodic, or emergency use. This legislation is applicable to individuals receiving aged care services within Australia, and the jurisdiction is governed by Commonwealth law. The Act outlines the provision of an oxygen supplement, with a daily rate of $9.37 effective from 1 July 2008, which replaces the previous rate set by Determination ACA Ch. 3 No. 10/2007. The determination includes a method for calculating the supplement when the actual cost to the approved provider exceeds 125 per cent of the daily rate. The supplement is indexed annually based on the Consumer Price Index, and no specific consultation was deemed necessary due to the established indexation formula. The legislation does not specify exclusions, exemptions, or thresholds beyond the nature of oxygen use, and any further application details or modifications are subject to subordinate instruments issued by the Minister.
Key Provisions
The main operative sections of the Aged Care Act 1997, specifically the determination under section 44-13 (ACA Ch. 3 No. 13/2008), focus on setting the amount of the oxygen supplement provided to care recipients who need regular and continuing oxygen. Section 44-13(6)(a) empowers the Minister to determine the specific amount of the supplement, while section 44-13(6)(b) allows the Minister to specify the method for calculating this supplement, particularly when the cost of administering oxygen exceeds 125% of the daily rate. This determination sets the oxygen supplement rate at $9.37, effective from 1 July 2008, and revokes the previous determination (ACA Ch. 3 No. 10/2007). The determination also includes a method to calculate the supplement when the actual cost of administering oxygen is equal to, or more than, 125% of the daily rate.
The Act imposes certain obligations on the parties involved, particularly on the Minister and approved providers. The Minister must determine the amount of the oxygen supplement and, if necessary, the method for calculating it. Approved providers must ensure that they adhere to the set rates and methods when administering oxygen to eligible care recipients. They must also be prepared to use the specified method for calculating the supplement if their costs exceed the specified percentage of the daily rate.
Breaches of the Act's provisions could result in various civil or criminal consequences. While specific offences and penalties are not detailed in the provided text, the Act generally outlines potential sanctions for non-compliance, which may include fines or other penalties. The maximum penalties, however, are not specified in this determination. Non-compliance with the prescribed methods and rates could lead to disputes or legal actions, impacting the financial and operational aspects of the approved providers. Therefore, adherence to the Act's requirements is crucial to avoid such repercussions.