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.
Overview
The Aged Care Act 1997, enacted by the Parliament of Australia, was introduced to address the need for a comprehensive framework to provide quality care and support for the elderly and those requiring aged care services. This legislation aims to ensure that aged care services are accessible, affordable, and of high quality. Specifically, the Act includes provisions for the Flexible Care Subsidy, which assists individuals receiving aged care services at home or in a community setting. The F2005L04068 Determination, made under section 52-1 of the Aged Care Act by the Minister for Ageing, outlines the method for calculating the flexible care subsidy for Extended Aged Care at Home (EACH) packages. This Determination distinguishes between EACH packages, which provide nursing and personal care services to those eligible for high-level residential care, and EACH-Dementia packages, introduced as a new form of flexible care. The policy objective of this Determination is to maintain consistency in the method of calculating the subsidy, ensuring that the basic subsidy amount for EACH remains equivalent to Category 2 Level on the Resident Classification Scale.
Scope and Application
The Flexible Care Subsidy Determination under section 52-1 of the Aged Care Act 1997 applies to the method of calculating the flexible care subsidy payable for Extended Aged Care at Home (EACH) packages, which are designed for individuals who would otherwise require high-level residential care but can receive nursing and personal care services in their own homes. This Determination specifies the exact method to be used for determining the amount of subsidy, referencing the definition of EACH in section 15.6 of the Flexible Care Subsidy Principles 1997. It is applicable to any person or entity providing EACH services within the jurisdiction of the Commonwealth of Australia, thereby ensuring a standardised approach across the nation. The Determination notably excludes EACH-Dementia packages, which are governed by a different method of calculation and were introduced through an amendment to the Principles on 2 November 2005. This legislative instrument, issued by the Minister for Ageing, is effective from the date of its registration and supersedes the previous Determination made on 21 June 2005.
Key Provisions
The Aged Care Act 1997 (the Act) includes provisions allowing the Minister for Ageing to determine the amount of flexible care subsidy or set a method for calculating this amount. Under section 52-1(2) of the Act, the Minister can issue a written determination that specifies either the amount of the subsidy or the method for calculating it. This flexibility ensures that the subsidy can be tailored to meet the needs of aged care recipients and providers. The current Determination, which revokes a previous one made on 21 June 2005, outlines the method for calculating the flexible care subsidy for Extended Aged Care at Home (EACH) packages. EACH packages provide nursing and personal care services in the home for individuals who would otherwise require high-level residential care. This Determination references the definition of EACH in section 15.6 of the Flexible Care Subsidy Principles 1997 (the Principles), distinguishing it from the newer EACH-Dementia packages introduced in 2005.
The Determination sets forth a specific method for calculating the flexible care subsidy for EACH packages, which includes a basic subsidy amount equivalent to Category 2 Level on the Resident Classification Scale. This is in contrast to the basic subsidy amount for EACH-Dementia, which is equivalent to Category 1 level on the same scale. The method for calculating the subsidy remains unchanged from the previous Determination (ACA Ch.3 14/2005), which means that no additional consultation with the industry was necessary. Moreover, the Office of Regulation Review has confirmed that no Regulation Impact Statement is required for this Determination, as identified by ORR ID Number 7801. This Determination is considered a "legislative instrument" under the Legislative Instruments Act 2003.
The Act imposes specific obligations on the parties involved, including the requirement for the Minister to determine the flexible care subsidy method and for service providers to adhere to the prescribed method when billing for services. Service providers must ensure that the subsidy amount calculated aligns with the method specified in the Determination. Failure to comply with the prescribed method may result in incorrect subsidy payments and potential financial discrepancies. Additionally, the Act requires that all calculations be transparent and based on the criteria set out in the Determination, ensuring that the subsidy is applied consistently across the industry.
Breach of the provisions outlined in this Determination may have legal consequences. While the Determination itself does not specify particular offences or penalties, non-compliance with the Act’s requirements could lead to civil or criminal actions under the Aged Care Act 1997. For example, incorrect calculation or submission of subsidy claims may be treated as fraudulent activity, potentially resulting in fines or other penalties. The severity of penalties would depend on the nature and extent of the breach, but it is clear that adherence to the specified method is crucial to avoid any legal repercussions.