EXPLANATORY STATEMENT
AGED CARE ACT 1997
SUBSECTION 52-1(1)
AGED CARE (AMOUNT OF FLEXIBLE CARE SUBSIDY – MULTI-PURPOSE SERVICES) DETERMINATION 2005 (NO. 3)
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.
Subsection 52-1(1) of the Aged Care Act 1997 provides that the Minister may determine in writing the amount of the flexible care subsidy or determine a method which must be used to work out the amount of flexible care subsidy.
Multi-purpose services (MPS) are flexible care services in rural locations that deliver a number of different forms of aged care, health care and community care.
The Australian Government’s 2005-06 Budget allocated $9.3 million over four years for an additional supplement of $20.45 per day for MPS that provide respite services for older Australians and their carers living in rural and remote areas. The implementation date for this initiative, called Recognising Senior Australians: Increasing Rural and Regional Respite Services, is 1 January 2006.
This determination revokes and replaces the previous determination, the Aged Care (Amount of flexible care subsidy – multi-purpose services) Determination 2005 (No. 2), which is also known as ACA Ch. 3 No. 19/2005.
This new determination specifies an additional component to the method for working out the rate of flexible care subsidy payable to MPS from 1 January 2006. The additional component is called the respite supplement equivalent amount. The respite supplement equivalent amount for a day is determined in accordance with a sliding scale of payments set out in clause 12 of the determination for the total number of high care places and low care places allocated in respect of the MPS.
The purpose of the sliding scale is to ensure an equitable distribution of the respite supplement amongst all MPS. No MPS will receive less than $40.90 respite supplement equivalent amount per day, which reflects the 2004 election commitment to provide a minimum of two respite places per MPS per day at $20.45 per place. Further, the sliding scale recognises the economies of scale which are applicable to providing residential care and residential respite care in larger MPS.
The introduction of the respite supplement equivalent amount builds on the existing formula for the flexible care subsidy and provides additional flexible funding to all MPS.
This new determination also changes the way that the flexible care subsidy is worked out. Part 2 of this determination provides that the amount of flexible care subsidy will be worked out per service, rather than per allocated place.
The previous determination provided for amounts of flexible care subsidy payable for high care places, low care places and community care places. The new amount of subsidy, the respite supplement equivalent amount, will be payable on a per MPS basis rather than on a per place basis. Therefore the determination now provides for the total amount of flexible care subsidy payable for a MPS for a day. This total amount comprises the amount payable for a day in respect of high care places, low care places, community care places and the respite supplement equivalent amount.
This new determination also makes some consequential amendments to the headings, wording and numbering of some sections of the previous determination.
For the purposes of consultation, the industry and State Health Departments have been made aware of this Budget measure through the usual post-Budget communication forums and the regular communication mechanisms for the National Respite for Carers Program.
All MPS providers and their auspicing bodies will be informed of the implementation of the respite supplement equivalent amount, and the additional flexible subsidy that they will receive.
This determination is a “legislative instrument” for the purposes of the Legislative Instruments Act 2003.