EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2011 (No. 1)
The Aged Care Act 1997 (the Act) provides for the regulation and 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 2011 (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 2011. This Determination also revokes the Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2010 (No. 1).
The difference between the Determinations is that the daily amount of flexible care subsidy payable for an EACHD care recipient has been indexed in accordance with standard indexation arrangements.
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
- an amount equal to any oxygen supplement that would have been payable in respect of the EACHD care recipient if he or she was receiving residential care
- an amount equal to 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 amount if the care recipient lives in a rural or remote location, provided that location has an Accessibility/Remoteness Index of Australia (ARIA) score of 3.52 or more.
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.
Consultation
Indexation of the subsidy uses a well established formula based on the Consumer Price Index 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 in 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 electronic media to approved providers.
This Determination commences on 1 July 2011.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2011 (No. 1) was introduced by the Minister for Mental Health and Ageing under the Aged Care Act 1997 to address the need for an updated method for calculating the daily flexible care subsidy for Extended Aged Care at Home - Dementia (EACHD) recipients. This Determination specifies the method for calculating the subsidy amount, effective from 1 July 2011, and replaces the 2010 Determination by indexing the rates in line with standard indexation arrangements. The total flexible care subsidy for an EACHD care recipient comprises a base amount, an oxygen supplement, an enteral feeding supplement, and an additional amount for those in rural or remote locations with an Accessibility/Remoteness Index of Australia (ARIA) score of 3.52 or more. The policy objective of this Determination is to ensure that the flexible care subsidy reflects changes in the cost of providing care services, as determined by the Consumer Price Index and Fair Work Australia decisions.
Scope and Application
The Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2011 (No. 1) applies to persons and entities approved under the Aged Care Act 1997 to provide flexible aged care services, specifically those offering Extended Aged Care at Home – Dementia (EACHD) services. The Act covers a range of care services provided to approved care recipients who would otherwise be eligible for high level residential care. This Determination sets out the method for calculating the daily flexible care subsidy payable for EACHD recipients, with rates effective from 1 July 2011, and replaces the previous Determination from 2010. The Determination also applies nationally across Australia, given the Commonwealth nature of the Aged Care Act 1997, and any exclusions or exemptions are to be found in the Act itself rather than this Determination. The method for calculating the subsidy amount includes a base amount, supplements for oxygen and enteral feeding, and an additional amount for care recipients in rural or remote areas, as defined by the Accessibility/Remoteness Index of Australia (ARIA). This Determination, being a legislative instrument, operates under the framework of the Legislative Instruments Act 2003, which may allow for further elaboration or amendment through subordinate instruments.
Key Provisions
The Aged Care (Amount of Flexible Care Subsidy – Extended Aged Care at Home – Dementia) Determination 2011 (No. 1) outlines the method for calculating the daily amount of flexible care subsidy payable for care recipients participating in the Extended Aged Care at Home – Dementia (EACHD) program. This Determination specifies that the total subsidy is comprised of four components: the base amount for EACHD care, any oxygen supplement, any enteral feeding supplement, and an additional amount for those residing in rural or remote areas with an Accessibility/Remoteness Index of Australia (ARIA) score of 3.52 or more. The rates are effective from 1 July 2011 and replace the previous Determination from 2010.
The Determination imposes specific obligations on care providers and recipients. Care providers must calculate the subsidy based on the formula provided, ensuring that all components are accurately accounted for. Recipients must meet the eligibility criteria for the EACHD program, which includes needing high-level residential care but receiving services at home. Both providers and recipients must adhere to the indexation formula for annual adjustments, ensuring that the subsidy remains reflective of current costs and economic conditions.
Failure to comply with the requirements outlined in the Determination can result in various consequences. For care providers, this may include financial penalties or the requirement to repay any incorrectly received subsidies. Recipients may face disruptions in the level of care if their subsidy calculations are not correctly handled. The Determination does not explicitly state penalties, but such breaches could be subject to general provisions in the Aged Care Act 1997 or other relevant legislation. The maximum penalties would depend on the specific breach and the applicable laws governing such infractions.
Overall, the Determination ensures that the flexible care subsidy for EACHD recipients is accurately calculated and indexed, providing a stable and reliable funding mechanism for those receiving dementia-specific care at home. This structured approach helps maintain the integrity and sustainability of the aged care system in Australia.