Aged Care Act 1997 - Determination under section 44-16 (ACA Ch. 3 No. 6/2006)

Administered by Department of Health, Disability and Ageing

Legislation au F2006L02130 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

AGED CARE ACT 1997

 

SECTION 44-16

 

 

DETERMINATION OF RATES OF FINANCIAL ASSISTANCE

(ACA Ch. 3 No. 6/2006)

 

 

TRANSITIONAL SUPPLEMENT

 

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.  Subsection 44-16(1) of the Act provides that the Residential Care Subsidy Principles 1997 may provide for additional primary supplements.  Section 21.26 of the Residential Care Subsidy Principles 1997 provides for the eligibility for payment of the transitional supplement. 

 

An aged care service is eligible for the payment of transitional supplement when residential care other than respite care is provided to:

 

  • A care recipient who, after 30 September 1997, entered a residential care service that was not certified on the day the care recipient entered the service; or
     
  • A person who:

 

  • on 30 September 1997 occupied a hostel place as defined under the Aged or Disabled Persons Care Act 1954; and
  • on 30 September 1997 was a financially disadvantaged person for General Conditions formulated under section 10F of that Act; and
  • after 30 September 1997 continued to receive residential care from the service; and
  • has been classified under Part 2.4 of the Act

 

  • A person who:

 

  • on 30 September 1997 occupied a nursing home bed in a nursing home approved under section 40AA of the National Health Act 1953; and
  • after 30 September 1997 continued to receive residential care from the service; and
  • has been classified under Part 2.4 of the Act.

 

 

 

 

This determination sets the transitional supplement rates with effect from 1 July 2006.

 

Consultation

 

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 aged care services in Australia, addressing gaps in the availability and quality of care for the elderly population. The Act aims to ensure that older Australians receive appropriate care and support in their later years. The determination of rates of financial assistance, particularly the transitional supplement, falls under the purview of the Minister as outlined in Section 44-16 of the Act, with further details provided in the Residential Care Subsidy Principles 1997. The transitional supplement is designed to assist eligible individuals who entered residential care after a specific date, ensuring they receive appropriate financial support. The determination, effective from 1 July 2006, was issued without specific consultation due to the use of an established indexation formula.

Scope and Application

The Aged Care Act 1997, as amended by the Transitional Supplement Determination, applies to aged care services that provide residential care other than respite care to specific categories of care recipients. These include individuals who entered a residential care service after 30 September 1997 that was not certified on the day of entry, and those who were occupying a hostel place as defined under the Aged or Disabled Persons Care Act 1954, or a nursing home bed under the National Health Act 1953, on 30 September 1997 and continued to receive care post this date. The Act is applicable across the Commonwealth of Australia and encompasses entities providing aged care services, as well as individuals who qualify for the transitional supplement. The Act extends its application through the Residential Care Subsidy Principles 1997, which detail the eligibility criteria and calculation of the supplement. The legislation does not specify any exclusions or exemptions beyond those defined in the principles, nor does it establish specific thresholds for eligibility.

Key Provisions

The Aged Care Act 1997, specifically under Section 44-16, allows the Minister to determine the rates of financial assistance, including any additional primary supplements, by written notice (Section 44-16(3)). This section also refers to the Residential Care Subsidy Principles 1997, which can provide for additional primary supplements (Section 44-16(1)). The eligibility criteria for the transitional supplement are detailed in Section 21.26 of the Residential Care Subsidy Principles 1997. This supplement is available to care recipients who entered a residential care service after 30 September 1997 that was not certified on the day they entered, or to those who were in a hostel place or nursing home bed on 30 September 1997 and continued to receive residential care post this date (Section 21.26). The transitional supplement rates have been set effective from 1 July 2006. The Aged Care Act 1997 imposes specific obligations on aged care services to ensure they meet the eligibility criteria for the transitional supplement. Service providers must confirm that care recipients meet the conditions outlined in the Act, such as entering residential care after 30 September 1997 and continuing to receive care from the service. The service must also ensure that the care recipient was either in a hostel place or nursing home bed on 30 September 1997 and was a financially disadvantaged person under the Aged or Disabled Persons Care Act 1954, or was in an approved nursing home under the National Health Act 1953. The service must maintain records and documentation to support these eligibility claims. There are no specific offences or penalties mentioned in the Act for breaches related to the transitional supplement. However, any non-compliance with the Act's requirements or fraudulent claims for the supplement could potentially lead to civil or criminal consequences, including fines or other penalties as determined by the relevant authorities. The exact penalties would depend on the nature and severity of the breach, and could be pursued under the general provisions of the Aged Care Act 1997 or other related legislation.

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Area of Law
Elder Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Transitional Provisions
Reporting & Disclosure Obligations

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