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 – Innovative Care Services) Determination 2013 (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 care recipients.
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. 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.
The purpose of the Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2013 (No. 1) is to specify the amount of flexible care subsidy payable in respect of different types of innovative care. The Determination ensures coverage for the period between the end of the financial year and the commencement of Schedule 1 to the Aged Care (Living Longer Living Better) Act 2013.
This Determination revokes Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2012 (No. 1). However, the intention is that the approach to the amount of subsidy payable will remain the same.
The amount of flexible care subsidy payable in respect of innovative care have been indexed in accordance with the standard indexation rates. That is, increases in the consumer price index (CPI) as a measure of movements in the non-labour costs of approved providers and the decisions of the Fair Work Commission as a measure of non‑productivity based movements of the wage costs of providers.
Consultation
The amount of flexible care subsidy payable in respect of innovative care have been indexed in accordance with the general policy for indexation of aged care payments upon which extensive consultation was undertaken. No specific consultation was undertaken with respect to this indexation.
Information about the increase in the amount of flexible care subsidy will be disseminated via electronic media to relevant approved providers.
This Determination commences on 1 July 2013.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2013 (No. 1)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The purpose of the Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2013 (No. 1) is to specify the amount of flexible care subsidy payable in respect of innovative care.
Human rights implications
This Legislative Instrument promotes the human right to health contained in article 12 of the International Covenant on Economic Social and Cultural Rights. The legislative instrument engages the right of everyone to the enjoyment of the highest attainable standard of physical and mental health by ensuring that the amount of flexible care subsidy payable in respect of innovative care have been indexed in accordance with the standard indexation rates. That is, increases in the consumer price index (CPI) as a measure of movements in the non-labour costs of approved providers and the decisions of the Fair Work Commission as a measure of non‑productivity based movements of the wage costs of providers.
This helps to ensure that the standard of care and services provided to recipients of innovative aged care services is maintained.
Conclusion
This legislative instrument is compatible with human rights as it promotes the human right to health.
The Hon. Mark Butler MP
Minister for Mental Health and Ageing