EXPLANATORY STATEMENT

AGED CARE ACT 1997

SECTION 44-8A

DETERMINATION OF RATES OF FINANCIAL ASSISTANCE

 (ACA Ch. 3 No. 15/2005)

Charge Exempt Resident Supplement

Paragraph 44-8A(3)(b) of the Aged Care Act 1997 (the Act) provides that the Minister may determine in writing the amounts of charge exempt resident supplement. 

Section 1 of this determination sets out the charge exempt resident supplement payable in respect of those residents qualifying under section 44-8B of the Act.  This amount is equivalent to the concessional resident supplement for services where more than 40% of the residents are concessional or assisted residents.

Section 2 of this determination sets out the charge exempt resident supplement payable in respect of those residents qualifying under section 44-8B of the Act who also qualify as assisted residents under section 44-8 of the Act.

Subsection 44-8A(4) sets out that the Minister may determine different amounts (including nil amounts) based on the maximum rate of concessional resident supplement, if the care recipient is an assisted resident or taking into consideration other matters specified in the Residential Care Subsidy Principles 1997.  These matters are set out in section 21.13B of the Residential Care Subsidy Principles 1997 and include whether the provider receives the concessional resident supplement at an assisted resident rate. As assisted residents can also be charge exempt residents, the amount of charge exempt resident supplement that service providers receive is reduced by the amount of assisted resident supplement payable to the provider in respect of that resident.

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.