EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
FLEXIBLE CARE SUBSIDY
DETERMINATION UNDER SECTION 52-1 FOR FLEXIBLE CARE SUBSIDY IN RESPECT OF EXTENDED AGED CARE AT HOME
Subsection 52-1(2) of the Aged Care Act 1997 (“the Act”) provides that the Minister may determine in writing the amounts of flexible care subsidy or determine a method which must be used to work out the amount of flexible care subsidy.
This Determination revokes a previous Determination made under section 52-1 of the Act by the Minister for Ageing on 21 June 2005. That Determination (known as ACA Ch.3 14/2005) determined the method which must be used to work out the amount of flexible care subsidy payable in relation to the provision of flexible care in the form of Extended Aged Care at Home (EACH ) packages from 1 July 2005.
EACH packages are a form of flexible care which provides nursing and personal care services in the home to people who would be eligible for high level residential care.
This Determination makes specific reference to the definition of EACH in section 15.6 of the Flexible Care Subsidy Principles 1997 (“the Principles”). This is to make a clear distinction between flexible care provided in the form of EACH packages and flexible care provided in the form of Extended Aged Care at Home-Dementia (EACH-Dementia) packages. EACH Dementia was introduced as a new form of flexible care through an amendment to the Principles made by the Minister on 2 November 2005.
This Determination sets out the method that must be used for working out the amount of flexible care subsidy payable in relation to the provision of flexible care in the form of EACH packages from the date of registration of the Determination.
The method for calculating the amount of flexible care subsidy in respect of care provided in the form of EACH packages includes a basic subsidy amount equivalent to Category 2 Level on the Resident Classification Scale. By way of contrast, the basic subsidy amount for EACH-Dementia is equivalent to Category 1 level on the Resident Classification Scale.
The method set out in this Determination for calculating flexible care subsidy in respect of EACH is the same as that previously set out in Determination ACA Ch.3 14/2005). As the method of calculation has not changed, no specific consultation with the industry was undertaken.
The Office of Regulation Review has advised that no Regulation Impact Statement is required (ORR ID Number 7801).
This Determination is a “legislative instrument” for the purposes of the Legislative Instruments Act 2003.