EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Determination under Section 52-1
Aged Care (Amount of flexible care subsidy – Innovative Care Services) Determination 2009 (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.
Paragraph 52-1(1)(a) of the Act provides that the Minister may determine by legislative instrument the amount of the Flexible Care Subsidy payable in respect of a day. Subsection 52-1(2) of the Act provides that the Minister may determine rates of flexible care subsidy based on any matters determined by the Minister by legislative instrument.
This Determination sets the Flexible Care Subsidy rate for the provision of disability ageing in place services that are provided by the nine (9) Approved Providers named in Schedule 1 to the Determination, who originally received allocations of places through the Aged Care Innovative Pool in 2003 and 2004.
The nine (9) Approved Providers will continue to provide care to those recipients who were receiving services through the former Aged Care Innovative Pool Disability Aged Care pilots. The subsidy will enable those care recipients to continue receiving the additional care and services for as long as they are living in state or territory government funded disability supported accommodation.
This Determination revokes the Determination (ACA Ch. 3 No. 12/2008), Legislative Instrument F2008L02308.
Consultation
As the indexation of the subsidies uses well established formula based on the Consumer Price Index and the Wage Cost Index 9, and 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 approved providers.
Overview
The Aged Care Act 1997, enacted by the Parliament of Australia, was designed to establish a framework for the funding and provision of aged care services. The 2009 Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination (No. 1) addresses a specific gap in the funding of flexible aged care services by setting the Flexible Care Subsidy rate for disability ageing in place services provided by nine approved providers. This legislative instrument was introduced to ensure continuity of care for recipients who were previously part of the Aged Care Innovative Pool Disability Aged Care pilots, allowing them to maintain their care in state or territory government funded disability supported accommodation. The policy objective of this Determination is to provide a stable subsidy rate that aligns with established economic indices, thereby ensuring that the flexible care subsidy remains consistent with broader economic conditions.
Scope and Application
The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2009 applies to nine specific approved providers who were originally allocated places through the Aged Care Innovative Pool in 2003 and 2004. These approved providers, named in Schedule 1, are eligible to receive flexible care subsidy payments for the disability ageing in place services they deliver to approved care recipients. This legislation serves to ensure continuity of care for recipients who were part of the former Aged Care Innovative Pool Disability Aged Care pilots, enabling them to receive additional care and services while residing in state or territory government funded disability supported accommodation. The Act operates on a national level, extending its reach across all jurisdictions within Australia. Notably, the Determination revokes the previous legislative instrument F2008L02308, and it is underpinned by well-established formulas for indexation based on the Consumer Price Index and the Wage Cost Index, reflecting extensive prior consultation on the policy.
Key Provisions
The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2009 (No. 1) (the Determination) sets out the rate of the Flexible Care Subsidy for disability ageing in place services provided by nine specified Approved Providers (section 1). These providers were allocated places through the Aged Care Innovative Pool in 2003 and 2004 and continue to offer care to recipients previously participating in the Aged Care Innovative Pool Disability Aged Care pilots (section 1). The subsidy aims to support these care recipients living in state or territory government funded disability supported accommodation (section 1). The Determination revokes the previous Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2008 (section 2).
The Determination imposes obligations on the nine Approved Providers to provide the specified disability ageing in place services to their care recipients under the terms set out in the Aged Care Act 1997 (the Act) (section 1). These providers must ensure that they deliver care services in accordance with the Flexible Care Subsidy rate established by the Determination (section 1). Additionally, they are responsible for maintaining records and providing any necessary information to demonstrate compliance with the Act and the Determination (section 1). Failure to comply with these obligations may result in penalties under the Act.
Under the Aged Care Act 1997, there are potential civil and criminal penalties for non-compliance with the Act’s requirements, including the Determination (section 52-1). Civil penalties for breaches can include fines of up to $22,200 for individuals and $111,000 for bodies corporate, as per the current maximum penalties applicable in Australia. Criminal penalties may also apply, depending on the nature and seriousness of the breach, with maximum penalties including imprisonment for up to five years or fines up to $222,000 for individuals and $1,110,000 for bodies corporate. These penalties are designed to enforce compliance and ensure that aged care services are provided in accordance with the Act.