EXPLANATORY STATEMENT
Issued under the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Aged Care (Amount of Flexible Care Subsidy – Innovative Care Service – Congress Community Development and Education Unit Ltd) 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.
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 2011. Under the Aged Care Innovative Pool another 12 places can be allocated to the approved provider. Funding is available to extend this service until 30 June 2012.
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 2011 (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 2011-12 until
30 June 2012.
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 indexed in accordance with standard indexation arrangements.
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 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 instrument.
Information about the increase in the amount of the subsidy will be disseminated via electronic media to the approved provider.
This Determination commences on 1 July 2011.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.