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 - DEMENTIA
(ACA Ch. 3 No. 14/2006)
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 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 Extended Aged Care at Home – Dementia (EACH-Dementia) packages from the date of registration of the Determination.
EACH-Dementia packages are a new form of flexible care introduced through an amendment to the Flexible Care Subsidy Principles 1997 (“the Principles”) made by the Minister on 2 November 2005. EACH-Dementia packages provide nursing and personal care services and dementia specific strategies in the home to people who would be eligible for high level residential care.
This Determination provides a method of calculation of flexible care subsidy for EACH-Dementia which includes a basic subsidy amount equivalent to the Category 1 level on the Resident Classification Scale (RCS). This is the highest level of subsidy payable under the Act for care recipients receiving residential care. This differs from the method of calculation for flexible care subsidy for care recipients receiving an Extended Aged Care at Home (EACH) Package (RCS2).
The Department has consulted with the Minister’s Dementia Implementation Task Force in relation to the establishment of the EACH-Dementia Program. In addition, feedback from the National Dementia Research Workshop held in Melbourne on 29 August 2005, attended by 140 academics and researches was considered in developing the amendments to the Principles which provide the basis for this Determination. As EACH-Dementia is a new form of flexible care and the basic subsidy amount is equivalent to the highest rate of subsidy payable in respect of care recipients receiving high level residential care, it was not considered necessary to have specific consultations with the industry in relation to the level of subsidy payable under this Determination.
The Office of Regulation Review has advised that no Regulation Impact Statement is required (ORR ID Number 7703).
This Determination is a “legislative instrument” for the purposes of the Legislative Instruments Act 2003.
Consultation
As the indexation of this subsidy uses a well established formula for indexation, no specific consultation with industry was undertaken with respect of this instrument.
Overview
The Aged Care Act 1997, enacted by the Australian Parliament, addresses the need for comprehensive aged care services, particularly for those requiring specialised care such as dementia. To further refine these services, the Minister for Ageing introduced the Flexible Care Subsidy Determination under Section 52-1 for Flexible Care Subsidy in Respect of Extended Aged Care at Home – Dementia. This legislative instrument, registered as F2006L02151, was issued to establish a method for calculating the flexible care subsidy for EACH-Dementia packages. The policy objective behind this determination is to provide a structured approach for funding home-based care for individuals with dementia, ensuring they receive a level of care equivalent to the highest subsidy rate available for residential care, thereby bridging the gap in specialised home care services. The establishment of this subsidy method was informed by consultations with the Minister’s Dementia Implementation Task Force and feedback from a national dementia research workshop.
Scope and Application
The Aged Care Act 1997, as amended by the Flexible Care Subsidy Determination under section 52-1 for Flexible Care Subsidy in Respect of Extended Aged Care at Home - Dementia, applies to individuals who are eligible for high-level residential care and require nursing and personal care services with dementia-specific strategies in their home environment. This legislative instrument sets out the method for calculating the flexible care subsidy for Extended Aged Care at Home – Dementia (EACH-Dementia) packages, which are designed to provide care that is equivalent to the highest level of subsidy for residential care, specifically Category 1 on the Resident Classification Scale. The Determination is applicable nationally, aligning with the Commonwealth's legislative framework for aged care. The method of calculation differs from that of other EACH packages, reflecting the specialised nature of dementia care. While the Determination sets the method for subsidy calculation, subordinate instruments may further refine or expand on its application, ensuring that the flexible care subsidy remains appropriately indexed and reflective of current needs. There are no exclusions or specific exemptions outlined in this Determination, but it is subject to the overarching provisions of the Aged Care Act 1997.
Key Provisions
The Aged Care Act 1997, as amended by the Flexible Care Subsidy Determination under Section 52-1 for Flexible Care Subsidy in respect of Extended Aged Care at Home - Dementia (ACA Ch. 3 No. 14/2006), sets out the method for calculating the flexible care subsidy payable for Extended Aged Care at Home - Dementia (EACH-Dementia) packages. This legislation introduces a new form of flexible care designed to provide nursing and personal care services and dementia-specific strategies to eligible individuals in their homes, who would otherwise require high-level residential care (Section 52-1(2)). The subsidy method includes a basic subsidy amount equivalent to the Category 1 level on the Resident Classification Scale (RCS), which is the highest level of subsidy under the Act for care recipients receiving residential care.
The Act imposes obligations on care providers, particularly those delivering EACH-Dementia packages, to ensure they adhere to the prescribed method of calculating the flexible care subsidy as outlined in the Determination. This includes maintaining accurate records and ensuring that the services provided are aligned with the criteria for EACH-Dementia packages. Care recipients and their families must also be informed of the level of subsidy they are entitled to under the new arrangements. Additionally, the Department of Health has engaged with relevant stakeholders, such as the Minister’s Dementia Implementation Task Force and participants of the National Dementia Research Workshop, to ensure the establishment of the EACH-Dementia Program is evidence-based and meets the needs of the target population.
The Determination does not explicitly state specific offences or penalties for breaches within its text. However, any failure to comply with the flexible care subsidy calculation method or related obligations under the Aged Care Act 1997 could result in civil or criminal consequences as prescribed by other sections of the Act. These may include fines or other penalties for non-compliance with aged care standards or fraudulent claims, as stipulated elsewhere in the legislation. The specific penalties for such breaches would depend on the nature and severity of the non-compliance, as well as any additional regulations or guidelines issued under the authority of the Act.