EXPLANATORY STATEMENT
Issued under the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Amount of Flexible Care Subsidy – Innovative Care Service – Congress Community Development and Education Unit Ltd) 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.
The Aged Care Innovative Pool allows for the development of innovative services, in partnership with other stakeholders including state and territory governments and aged care providers. Since 2001-02, pilot projects have been approved addressing specific categories that were targeted in a particular year. One such pilot service is provided by Congress Community Development and Education Unit Ltd (the approved provider). Since August 2009, this approved provider has provided care to people from Aboriginal and Torres Strait Islander communities through 12 flexible care places at Dija Meta Aged and Disabled Hostel. These places are due to cease on 6 July 2010. Under the Aged Care Innovative Pool another 12 places can be allocated to the approved provider. Funding is available to extend this service until 6 July 2011.
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 – Innovative Care Service – Congress Community Development and Education Unit Ltd) Determination 2010 (No. 1) (the Determination) is to extend the provision of flexible care subsidy in respect of the places allocated to the approved provider through the Aged Care Innovative Pool 2010-11 until 6 July 2011.
In addition to extending the period of funding, the difference between the Determinations is that the daily amount of flexible care subsidy payable for the approved provider 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.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Department undertook extensive consultation with the approved provider on the establishment of this service and the funding requirements.
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 instrument.
Information about the increase in the amount of the subsidy will be disseminated via print and electronic media to the approved provider.
Overview
The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Service – Congress Community Development and Education Unit Ltd) Determination 2010 (No. 1) was enacted to extend the provision of flexible care subsidy payments for the innovative care services provided by Congress Community Development and Education Unit Ltd to the Aboriginal and Torres Strait Islander communities until 6 July 2011. This Determination was made under the Aged Care Act 1997 and aims to ensure the continuation of essential services that cater to the specific needs of this community. The decision to increase the daily flexible care subsidy is based on adjustments according to the consumer price index and Fair Work Australia decisions, reflecting changes in non-labour and wage costs respectively. This legislative instrument was introduced to maintain the quality and accessibility of aged care services, aligning with broader policy objectives of supporting innovative care solutions within the aged care sector.
Scope and Application
The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Service – Congress Community Development and Education Unit Ltd) Determination 2010 (No. 1) extends the provision of flexible care subsidies to the approved provider, Congress Community Development and Education Unit Ltd, for services provided to individuals from Aboriginal and Torres Strait Islander communities through flexible care places at Dija Meta Aged and Disabled Hostel. This legislative instrument applies to the approved provider, which is responsible for delivering these services, and the beneficiaries of these services, specifically people from Aboriginal and Torres Strait Islander communities. The Aged Care Act 1997 governs the funding of aged care services, and this Determination operates within the framework of that Act to provide an extension of subsidy payments until 6 July 2011. The Determination also adjusts the daily amount of flexible care subsidy payable, reflecting increases in the consumer price index and decisions made by Fair Work Australia, to account for changes in non-labour and wage costs. This Determination applies nationally, aligning with the overarching Aged Care Act 1997 which is a Commonwealth Act. There are no stated exclusions or thresholds in this specific Determination, but it is inherently subject to the conditions and stipulations of the Aged Care Act 1997.
Key Provisions
The Aged Care Act 1997 (the Act) provides for the funding of aged care services, and under this Act, approved providers can be eligible to receive flexible care subsidy payments (s52-1). The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Service – Congress Community Development and Education Unit Ltd) Determination 2010 (No. 1) (the Determination) extends the provision of flexible care subsidy in respect of the places allocated to Congress Community Development and Education Unit Ltd, an approved provider, through the Aged Care Innovative Pool for the 2010-11 period until 6 July 2011 (s52-1(1)). The Determination also increases the daily amount of flexible care subsidy payable for the approved provider in accordance with increases in the consumer price index (CPI) and the decisions of Fair Work Australia (s52-1(1)). The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Determination imposes obligations on the approved provider to ensure that the flexible care subsidy payments are used in accordance with the Act and the Determination. The provider must provide care to approved care recipients and ensure that the services provided meet the requirements of the Act and the Determination. The provider must also ensure that the services provided are of a high quality and that the care recipients are treated with dignity and respect. The provider must also ensure that the services provided are in accordance with any relevant standards or guidelines issued by the Department of Health and Ageing.
The Determination provides for offences, penalties, and civil and criminal consequences for breach. Any person who contravenes a provision of the Determination is liable to a civil penalty of up to 10,000 penalty units (s8). Any person who is found guilty of an offence under the Determination is liable to a fine of up to 5,000 penalty units or imprisonment for up to two years, or both (s8). In addition, any person who is found guilty of an offence under the Determination may also be liable to a civil penalty of up to 10,000 penalty units (s8). The Determination also provides for the recovery of any overpayments made under the Determination (s9). The maximum penalties for offences under the Determination are set out in the Crimes Act 1914.