EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2010 (No. 1)
The Aged Care Act 1997 (the Act) provides for the funding of aged care services. Persons who are approved under the Act to provide flexible aged care services can be eligible to receive flexible care subsidy payments in respect of the care they provide to approved care recipients.
Extended Aged Care at Home - Dementia (EACHD) is a flexible care program in respect of which flexible care subsidy is payable. EACHD provides nursing and personal care services and dementia specific strategies to an aged care recipient in the care recipient’s home where the care recipient would otherwise be eligible for high level residential care.
Subsection 52-1(1) of the Act provides that the amount of flexible care subsidy that is payable in respect of a day is the amount determined by the Minister by legislative instrument or worked out in accordance with a method determined by the Minister by legislative instrument.
The purpose of the Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2010 (No. 1) (the Determination) is to specify the method for working out the daily amount of flexible care subsidy payable in respect of an EACHD care recipient, with rates effective from 1 July 2010. This Determination also revokes Aged Care (Amount of flexible care subsidy – Extended Aged Care at Home – Dementia) Determination 2009 (No. 1).
The difference between the Determinations is that the daily amount of flexible care subsidy payable for an EACHD care recipient has been increased in accordance with increases in the consumer price index (CPI) as a measure of movements in the non-labour costs of providers and the decisions of Fair Work Australia as a measure of non-productivity based movements of the wage costs of providers. This Determination also implements the 2010-11 Budget measure ‘National Health and Hospitals Network – Aged Care – improving the viability of community care providers’. Under this initiative, a total of $10.1 million over four years is provided to increase the viability supplement paid to eligible community aged care providers in rural and remote areas, including eligible EACHD providers.
The total amount of flexible care subsidy payable in respect of an EACHD care recipient is the sum of following four amounts as set out in the Determination:
- the base amount of flexible care subsidy payable for a day for a care recipient receiving flexible care in the form of EACHD
- any oxygen supplement that would have been payable in respect of the EACHD care recipient if he or she was receiving residential care
- any enteral feeding supplement that would have been payable in respect of the EACHD care recipient if he or she was receiving residential care
- an additional daily amount payable to an approved provider who provides EACHD to a care recipient in a rural or remote location, provided that location has an Accessibility/Remoteness Index of Australia (ARIA) score of 3.52 or more. The additional daily amount increases as the ARIA score (the measure of accessibility and remoteness of the geographical location at which the care recipient resides) increases.
Under the ARIA, each suburb and town in Australia is allocated a score based on its accessibility and remoteness. ARIA scores for all Australian locations are contained in the document entitled Viability Funding — ARIA scores for locations as at 30 July 1999, published by the Department of Health and Ageing.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The need for increased support for rural and remote community aged care providers has emerged from the Government’s consultations on the National Health and Hospitals Network.
Indexation of the subsidy uses a well established formula based on the CPI as a measure of the movements in the non-labour costs of providers and the decisions of Fair Work Australia as a measure of non-productivity based movements of the wage costs of providers. As this is in accordance with policy upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this indexation.
Information about the increase in the amount of the subsidy will be disseminated via print and electronic media to approved providers.
Overview
The Aged Care Act 1997 established the legislative framework for the funding of aged care services in Australia, allowing for the provision of flexible aged care services and the payment of subsidies to those who provide such services. The Act's intent is to ensure that older Australians can receive necessary care and support in a manner that is both flexible and suited to their individual needs. To address the gap in support for community-based care, particularly for those with dementia who would otherwise require high-level residential care, the Act includes provisions for flexible care subsidies. The Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2010 (No. 1) was introduced to specify the methodology for calculating the daily flexible care subsidy payable for Extended Aged Care at Home - Dementia (EACHD) care recipients, effective from 1 July 2010. This determination also increased the subsidy amount in line with the consumer price index and Fair Work Australia decisions, aiming to reflect changes in providers' non-labour and wage costs, while also implementing a budget measure to bolster the viability of community care providers in rural and remote areas.
Scope and Application
The Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2010 (No. 1) applies to providers approved under the Aged Care Act 1997 to provide flexible aged care services, particularly those offering Extended Aged Care at Home – Dementia (EACHD) programs. These services are designed to support aged care recipients who would otherwise require high-level residential care, by delivering nursing and personal care services, including dementia-specific strategies, within the care recipient's home. The Determination specifies the method for calculating the daily flexible care subsidy payable to these providers, effective from 1 July 2010, and it revokes the previous 2009 version of the Determination. The increase in subsidy amounts reflects adjustments based on the Consumer Price Index (CPI) for non-labour costs and decisions by Fair Work Australia for wage costs, aiming to enhance the viability of community care providers, particularly in rural and remote areas. The total subsidy comprises the base amount for EACHD care, any oxygen supplement, enteral feeding supplement, and an additional daily amount for providers in locations with an Accessibility/Remoteness Index of Australia (ARIA) score of 3.52 or more, which adjusts based on the level of remoteness.
Key Provisions
The main operative sections of the Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2010 (No. 1) detail the methodology for calculating the daily flexible care subsidy payable for an Extended Aged Care at Home – Dementia (EACHD) care recipient. Under section 52-1(1) of the Aged Care Act 1997, the amount of flexible care subsidy payable is determined by the Minister through a legislative instrument. This Determination specifies the method for working out the daily flexible care subsidy payable in respect of an EACHD care recipient, with rates effective from 1 July 2010. It also revokes the 2009 Determination, reflecting updated rates based on the Consumer Price Index (CPI) and decisions of Fair Work Australia.
The Act imposes obligations on approved providers of flexible aged care services to provide eligible care recipients with nursing and personal care services and dementia-specific strategies in the care recipient’s home, where they would otherwise be eligible for high-level residential care. The Determination outlines the specific amounts constituting the flexible care subsidy, including the base amount, any oxygen and enteral feeding supplements, and an additional amount for providers in rural or remote locations with an Accessibility/Remoteness Index of Australia (ARIA) score of 3.52 or more. This additional amount varies with the ARIA score, which measures the accessibility and remoteness of the care recipient's location.
The Determination also introduces financial support measures, including an increase in the subsidy amount to improve the viability of community care providers in rural and remote areas, as part of the National Health and Hospitals Network initiative. Under this initiative, $10.1 million over four years is allocated to increase the viability supplement for eligible community aged care providers. This legislative instrument is subject to the provisions of the Legislative Instruments Act 2003, ensuring its validity and enforceability.
For breaches of the Determination, the Act may impose civil or criminal penalties, depending on the nature and severity of the breach. The specific penalties are not detailed in the Determination but would be in line with the provisions of the Aged Care Act 1997 and other relevant legislation. The Determination ensures that information about the increase in the subsidy amount is disseminated to approved providers through print and electronic media, ensuring transparency and compliance.