EXPLANATORY STATEMENT
Aged Care Act 2024
Aged Care (Allocation of Multi-Purpose Service Program Places for 2026-2027) Determination 2026
Purpose and operation
The purpose of the Aged Care (Allocation of Multi-Purpose Service Program Places for 2026-2027) Determination 2026 (Determination) is to determine the number of places available to be allocated in the 2026-2027 financial year, to entities for the delivery of funded aged care services through the service group residential care under the Multi-Purpose Service Program (MPSP) under the Aged Care Act 2024 (Act).
Background
The MPSP is a specialist aged care program that provides integrated health and aged care services in rural and remote areas. The annual determination of available places ensures that service provision aligns with government priorities and community needs.
Authority
This Determination is made under subsection 94(1) of the Act. Paragraph 94(1)(b) provides that the Minister may determine for a financial year, for the Multi-Purpose Service Program, the number of places available to be allocated to entities for delivering funded aged care services through a service group under a program; and how many of those places are for a residential care home or home or community setting.
Consultation
The Department of Health, Disability and Ageing has consulted with State and Territory governments, MPSP providers, and relevant stakeholders through the MPSP Working Group and regular engagement forums. No significant concerns were raised regarding the proposed number of places for allocation in 2026–27.
Commencement
This Determination commences on the day after it is registered.
General
This Determination is a legislative instrument for the purposes of the Legislation Act 2003 (Legislation Act). Section 42 (disallowance) of the Legislation Act does not apply to the making of this determination (see subsection 94(5) of the Act).
Any determination made under subsection 94(1) of the Act will be based on decisions made through the Expenditure Review Committee (ERC). The ERC will also control spending under the Act for subsidies paid for specialist aged care programs, with the System Governor only able to allocate a place to an entity for the delivery of funded aged care services when the Minister determines a place is available for allocation under subsection 94(1) of the Act.
The exemption from disallowance is justified on the basis that the determination is an internal tool to manage Government spending and administration resources in accordance with
decisions made through the annual Budget process. Ensuring that the determination is exempt from disallowance minimises the risk of uncertainty that would arise if the determination was disallowed and the Minister could not determine the number of places available for allocation, leaving the System Governor unable to allocate places to entities to facilitate access to funded aged care services.
Details of this Determination are set out in Attachment A.
ATTACHMENT A
Details of the Aged Care (Allocation of Multi-Purpose Service Program Places for 2026-2027) Determination 2026
Section 1 – Name
Section 1 provides that the name of the instrument is the Aged Care (Allocation of Multi-Purpose Service Program Places for 2026-2027) Determination 2026.
Section 2 – Commencement
Section 2 provides that the commences on the day after it is registered on the Federal Register of Legislation.
Section 3 – Authority
Section 3 provides that the Determination is made under subsection 94(1) of the Aged Care Act 2024.
Section 4 – Definitions
Section 4 sets out that a number of terms are defined in section 7 of the Act including:
(a) entity
(b) Multi-Purpose Service Program
(c) residential care home
This section also sets out the definition for terms referred to in this Determination as follows:
Act means the Aged Care Act 2024.
financial year means the 2026-2027 financial year commencing on 1 July 2026 and ending on 30 June 2027.
Section 5 – Number of places available for allocation in 2026-2027
Section 5 provides that the number of places available for allocation in the 2026-27 financial year for the delivery of funded aged care services through the service group residential care under the Multi-Purpose Service Program (MPSP) is 100 places. All 100 places are for a residential care home.
This means that where these places are later allocated to a particular provider for delivering services at an approved residential care home, they will be considered residential care places, as defined in section 5-5 of the Aged Care Rules 2025 (the Rules). Due to the flexibility built into the MPSP, funding associated with these places can be used flexibly to deliver funded aged care services to approved individuals and the services they have been approved to access. However, any conditions on the allocation of a particular place under section 99 of the Aged Care Act 2024 and section 99-5 of the Rules must still be complied with.
The Hon Sam Rae MP
Minister for Aged Care and Seniors