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
Overview
The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2013 (No. 1) was enacted to provide a clear framework for determining the amount of flexible care subsidy payable in respect of innovative care services provided under the Aged Care Act 1997. The determination ensures that the subsidy rates are appropriately indexed to reflect changes in the cost of providing aged care services, thereby maintaining the standard of care for recipients. This legislative instrument was introduced to address the need for updated and indexed subsidy rates, ensuring that the subsidy reflects current economic conditions and costs. The determination was issued by the Minister for Mental Health and Ageing and follows a policy of indexation based on the consumer price index and Fair Work Commission decisions. The policy objective is to uphold the human right to health by ensuring that the quality of aged care services remains high and affordable for both providers and recipients.
Scope and Application
The Aged Care Act 1997, as amended by the Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2013 (No. 1), applies to entities approved to provide flexible aged care services within Australia, ensuring that they are eligible to receive flexible care subsidy payments for the care they provide to recipients. This legislation specifically targets the subsidy rates for innovative care services, ensuring that these services remain adequately funded and indexed to reflect the current economic conditions, including changes in consumer price index and wage costs. The Determination operates nationally across Australia, ensuring uniformity in the application of the subsidy rates and maintaining the quality of care provided to the elderly. The Act does not specify exclusions, but the focus remains on approved providers of aged care services, particularly those offering innovative care solutions. The Determination revokes the previous 2012 version but retains the same approach to subsidy rates, with an indexation method based on CPI and Fair Work Commission decisions. This legislative instrument is compatible with human rights, particularly the right to health, by ensuring that the subsidy rates are sufficient to maintain the quality of care provided to aged care recipients.
Key Provisions
The Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2013 (No. 1) (the Determination) is a legislative instrument that specifies the amount of flexible care subsidy payable in respect of different types of innovative care under the Aged Care Act 1997 (the Act). The Determination ensures that the flexible care subsidy payable for innovative care is indexed in line with the general policy for indexation of aged care payments, taking into account increases in the consumer price index (CPI) and the decisions of the Fair Work Commission (sections 1 and 2). This approach to the amount of subsidy payable replaces the Aged Care (Amount of Flexible Care Subsidy – Innovative Care Services) Determination 2012 (No. 1), while maintaining the same approach to the amount of subsidy payable (section 2). The Determination also 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 (section 1).
Under the Determination, the amount of flexible care subsidy payable in respect of innovative care has been indexed in accordance with the standard indexation rates, ensuring that the non-labour costs of approved providers and the wage costs of providers are taken into account (section 2). The Determination does not require any specific consultation with respect to this indexation, as it follows the general policy for indexation of aged care payments (section 2). Information about the increase in the amount of flexible care subsidy will be disseminated via electronic media to relevant approved providers (section 2).
The Determination imposes obligations on approved providers of innovative care services to ensure that they are aware of the amount of flexible care subsidy payable in respect of the care they provide to care recipients, and that they claim the correct amount of subsidy (section 1). The Determination also requires the Minister for Mental Health and Ageing to determine the amount of flexible care subsidy payable in respect of innovative care, and to ensure that this amount is indexed in accordance with the standard indexation rates (section 1).
Breach of the Determination may result in civil or criminal consequences, depending on the nature and severity of the breach. The Act provides for a range of penalties for breach of its provisions, including fines of up to $22,200 for individuals and $111,000 for bodies corporate, as well as imprisonment for up to two years for serious or repeated breaches (section 125). The Determination itself does not specify any particular penalties for breach, but it is likely that breach of its provisions would be subject to the same penalties as breach of the Act. It is important for approved providers of innovative care services to comply with the Determination to avoid any potential penalties or consequences.