EXPLANATORY STATEMENT
AGED CARE ACT 1997 SECTION 44-16(3)
DETERMINATION UNDER SECTION 44-16(3)
(ACA Ch. 3 No. 15/2008)
CONDITIONAL ADJUSTMENT PAYMENT
Subsection 44-16(1) of the aged Care Act 1997 (the Act) provides that the Residential Care Subsidy Principles 1997 may provide for additional primary supplements.
Division 4 of Part 10 of the Residential Care Subsidy Principles 1997 provides that the Conditional Adjustment Payment will paid in respect of a care recipient if the approved provider complies with three requirements, namely that they:
produced a financial report for either the approved provider or the residential care service through which the care recipient receives care, for the previous financial year, in accordance with the accounting standards, had that report audited, and provided a copy of the report for the financial year previous to the previous financial year to:
- any care recipient who received care from the entity covered by the financial report, or their representative, who requested a copy of the report; and
- any prospective care recipient (that is, a person approved to receive residential care) who was considering receiving care from the entity covered by the financial report, or their representative, who requested a copy of the report; and
- any person or agency authorised by the Secretary of the Department of Health and Ageing, who requested a copy of the report.
encouraged workforce training at the residential care service during the previous calendar year; and
participated in the most recent workforce census conducted by the Department of Health and Ageing.
Subsection 44-16(3) of the Aged Care Act 1997 provides that the Minister may determine in writing the amount of additional primary supplements or the way in which the amount of the supplement is to be worked out.
This determination sets the amounts of the Conditional Adjustment Payment, with effect from 1 July 2008, in line with the amount announced in the 2008-09 Budget Papers. It also revokes the previous determination under section 44-16(3) of the amounts of Conditional Adjustment Payment, made on 10 February 2005.
Consultation
Since this instrument is the result of a 2008-09 Budget decision, no specific consultation was undertaken with respect to the instrument.
Overview
The Aged Care Act 1997 was enacted to provide a framework for the regulation, funding and delivery of aged care services in Australia, aiming to ensure that older Australians receive quality care that is affordable and accessible. The Act was introduced to address the growing need for a structured approach to aged care, ensuring that the needs of the ageing population are met through a coordinated system of services. The Act was enacted by the Parliament of Australia, reflecting the policy objective of providing a comprehensive and integrated system of aged care. The Conditional Adjustment Payment under the Act, as outlined in the Explanatory Statement, is designed to support approved providers by offering additional primary supplements contingent on compliance with specific financial, training, and census-related requirements. This initiative aims to enhance the quality of aged care services by promoting transparency, encouraging workforce development, and ensuring that providers adhere to established financial reporting standards.
Scope and Application
The Aged Care Act 1997, as amended by the F2008L02232 determination under section 44-16(3), provides a framework for the Conditional Adjustment Payment to be made to care recipients in residential aged care services. This Act applies to approved providers who deliver residential care services and the care recipients they serve. It specifically mandates that approved providers must meet certain conditions to be eligible for the Conditional Adjustment Payment, including producing and making available audited financial reports, encouraging workforce training, and participating in workforce censuses conducted by the Department of Health and Ageing. The Act operates under the Commonwealth jurisdiction and its provisions are applicable nationwide. This determination also includes the revocation of a previous determination, aligning the Conditional Adjustment Payment with the amounts announced in the 2008-09 Budget Papers, effective from 1 July 2008. There are no stated exclusions or exemptions in this particular determination, though the scope of application may be extended or restricted through subordinate instruments.
Key Provisions
The key operative sections of this legislation pertain to the Conditional Adjustment Payment under the Aged Care Act 1997, as set out in section 44-16(3). This section outlines the requirements for an approved provider to be eligible for the payment, including the production of an audited financial report for the previous financial year and compliance with workforce training and census participation requirements (subsection 44-16(1)). The determination under section 44-16(3) establishes the specific amount of the Conditional Adjustment Payment, effective from 1 July 2008, and revokes the previous determination made on 10 February 2005.
The Act imposes several obligations on the approved providers of residential care services. Firstly, they must produce a financial report for the previous financial year that complies with accounting standards and has been audited. This report must be made available to any care recipient or prospective care recipient, as well as to any authorised person or agency upon request. Secondly, the provider must have encouraged workforce training at the residential care service during the previous calendar year. Lastly, the provider must participate in the most recent workforce census conducted by the Department of Health and Ageing. Failure to meet any of these requirements could result in the provider not being eligible for the Conditional Adjustment Payment.
There are no specific offences, penalties, or civil/criminal consequences outlined in this legislation for breach of the provisions. However, the primary consequence of non-compliance would be the ineligibility of the provider for the Conditional Adjustment Payment. It is important for approved providers to adhere to the requirements to ensure they remain eligible for the financial support provided under this legislation. The determination under section 44-16(3) is a critical aspect of the Act, as it sets the specific amount of the payment and ensures that the provisions are in line with the government's budgetary decisions.