EXPLANATORY STATEMENT
AGED CARE ACT 1997
SECTION 44-28
DETERMINATION OF RATES OF FINANCIAL ASSISTANCE
(ACA Ch. 3 No. 14/2007)
PENSIONER SUPPLEMENT
Subsection 44-28(7) of the Aged Care Act 1997 (the Act) provides that the Minister may determine in writing the amount of the pensioner supplement.
All care recipients who meet the requirements of subsection 44-28(2) of the Act and who are not excluded under subsection 44-28(3) of the Act are eligible for a pensioner supplement. This includes residents who receive an income support payment (but who have not agreed to pay a large bond), residents with dependent children and residents provided with respite care.
This determination sets the pensioner supplement rate with effect from 1 July 2007.
All residential care subsidy rates are indexed on 1 July each year. The index incorporates movements in wage costs and non-wage costs. The wage costs component is calculated using the annualised dollar figure of the October 2006 Federal Minimum Wage decision of the Australian Fair Pay Commission expressed as a proportion of the (latest available) Average Weekly Ordinary Time Earnings at the time of the AFPC decision. The non-wage costs index is based on the Consumer Price Index exclusive of the impact of A New Tax System consistent with a whole of government decision.
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.