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.
Overview
The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Service – Congress Community Development and Education Unit Ltd) Determination 2011 (No. 1) was enacted to address the need for continued funding of a specific innovative care service provided by Congress Community Development and Education Unit Ltd for Aboriginal and Torres Strait Islander communities. This legislation was introduced under the Aged Care Act 1997, and it was issued by the Minister for Mental Health and Ageing. The policy objective of the Determination is to extend the flexible care subsidy for the innovative care service until 30 June 2012, while also ensuring that the subsidy amount is indexed according to standard indexation arrangements. The determination was made after extensive consultation with the approved provider regarding the establishment of the service and its funding requirements. The indexation formula is based on the Consumer Price Index and the decisions of Fair Work Australia.
Scope and Application
The Aged Care Act 1997 governs the regulation and funding of aged care services in Australia, applying to individuals approved to provide flexible aged care services and the care recipients they serve. The Act allows for the establishment of an Aged Care Innovative Pool, enabling the development of innovative services in partnership with various stakeholders, including state and territory governments and aged care providers. The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Service – Congress Community Development and Education Unit Ltd) Determination 2011 (No. 1) extends the funding for a pilot service provided by Congress Community Development and Education Unit Ltd, which has been delivering care to people from Aboriginal and Torres Strait Islander communities. This Determination modifies the amount of flexible care subsidy payable, applying the standard indexation formula based on the Consumer Price Index and Fair Work Australia decisions, and ensures continuity of care until 30 June 2012. The Determination does not extend beyond the specified period or modify the eligibility criteria beyond the adjustment of the subsidy amount, adhering strictly to the provisions of the Aged Care Act 1997.
Key Provisions
The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Service – Congress Community Development and Education Unit Ltd) Determination 2011 (No. 1) sets out specific provisions to extend the funding of flexible care services provided by Congress Community Development and Education Unit Ltd until 30 June 2012, as detailed in section 52-1(1) of the Aged Care Act 1997. The primary objective of this Determination is to continue the flexible care subsidy payments for 12 additional places allocated to the approved provider through the Aged Care Innovative Pool for the 2011-12 period. This subsidy extension is intended to support the ongoing operation of care services for people from Aboriginal and Torres Strait Islander communities at the Dija Meta Aged and Disabled Hostel. The flexible care subsidy payable under this Determination has been indexed in accordance with standard indexation arrangements, reflecting changes in the cost of living and wage costs as measured by the Consumer Price Index and Fair Work Australia decisions.
The Aged Care Act 1997 imposes several obligations on parties involved in the provision and receipt of aged care services. Firstly, approved providers, such as Congress Community Development and Education Unit Ltd, must ensure that the services they offer meet the standards set out in the Act. This includes providing care that is safe, effective, and tailored to the individual needs of care recipients. Additionally, the Act requires that these providers maintain records and provide reports as necessary to demonstrate compliance with the requirements of the Act and the Determination. Care recipients, on the other hand, must meet the eligibility criteria to receive the flexible care subsidy and participate in the care plans developed for them.
Failure to comply with the provisions of the Aged Care Act 1997 and the related Determination can result in civil or criminal penalties. Under the Act, authorised officers have the power to enforce compliance through various measures, including issuing compliance notices, seeking injunctions, or applying to the Federal Circuit and Family Court of Australia for enforcement orders. The maximum penalties for contravening the Act can include substantial fines and, in some cases, imprisonment, depending on the severity and nature of the breach. It is important for all parties involved to adhere to the requirements set out in the Act to avoid these potential consequences.