EXPLANATORY STATEMENT
AGED CARE ACT 1997
SECTION 48
DETERMINATION OF RATES OF FINANCIAL ASSISTANCE
(ACA Ch. 3 No. 9/2006)
COMMUNITY CARE SUBSIDY
Subsection 48-1(3) of the Aged Care Act 1997 provides that the Minister may determine in writing the amount of the community care subsidy.
This determination sets the community care subsidy rate with effect from 1 July 2006.
All aged care subsidy rates are indexed on 1 July each year. The index incorporates movements in wage costs and non-wage costs. The wage costs index is based on the Safety Net Adjustment determined by the Australian Industrial Relations Commission as a proportion of Average Weekly Ordinary Time Earnings. 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 subsidy uses a well established formula for indexation, no specific consultation with industry was undertaken with respect to this instrument.