EXPLANATORY STATEMENT
Issued under the authority of the Minister for Ageing
Aged Care Act 1997
Determination under Subsection 52-1
Aged Care (Amount of flexible care subsidy – multi-purpose services) Determination 2009 (No. 2)
Subsection 52-1(1) of the Aged Care Act 1997 (the Act) provides that the Minister for Ageing may determine, by legislative instrument, the amount of the flexible care subsidy or a method that must be used to work out the amount of flexible care subsidy.
In accordance with paragraph 52-1of the Act, the Aged Care (Amount of flexible care subsidy – multi-purpose services) Determination 2009 (No.2) (the Determination) specifies the method for working out the amount of flexible care subsidy payable to a multi-purpose service (MPS) under section 51-1 of the Act.
The Determination applies from 1 January 2010 and, from that date, revokes the Aged Care (Amount of flexible care subsidy – multi-purpose services) Determination 2009 (No.1) otherwise known as F2009L02387.
An MPS is a flexible care service in a rural or remote location that delivers a number of different forms of aged care, health care and community care. An MPS is not funded on the same basis as a residential care service under the Act. An MPS is funded on a ‘cashed-out’ basis, that is, allocated places are deemed to be occupied for the purposes of funding.
This Determination reflects the 2009-10 Budget Measure - Measures to Support Older Australians - Aged care viability supplements increase - which provided $14.8 million over two years to increase the viability supplement paid to eligible aged care providers in regional, rural and remote areas.
Consequential to increases to viability funding, this Determination provides for the total amount of flexible care subsidy payable for an MPS for a day. This total amount comprises the amount payable for a day in respect of the MPS’s high, low and community care places, and the respite supplement equivalent amount.
The amount of subsidy payable to an MPS for high care places is based on:
- a basic subsidy equivalent amount, which is a proportion of Residential Classification Scale RCS3 with loading for the Conditional Adjustment Payment;
- a concessional resident equivalent amount (regional rates apply);
- a viability supplement equivalent amount, which is based on a proportion of the viability supplement payable for residential aged care; and
- an adjusted subsidy reduction amount (where appropriate), which is based on a proportion of the adjusted subsidy reduction for residential care.
The amount of subsidy payable to MPS for low care places is based on:
- a basic subsidy equivalent amount, which is a proportion of Residential Classification Scale RCS7 with loading for the Conditional Adjustment Payment;
- a concessional resident equivalent amount (regional rates apply); and
- a viability supplement equivalent amount, which is based on a proportion of the viability supplement payable for residential aged care.
The amount of subsidy payable to MPS in respect of community care places is based on a proportion of the Community Care subsidy (currently 94 per cent).
Section 13 provides for an additional daily amount of community care subsidy to be paid in respect of each community care place allocated to an MPS under the Act if the MPS is in a rural or remote location that has an Accessibility/Remoteness Index of Australia (ARIA) score of more than 3.51. This is analogous to viability supplement payable to providers of community care places.
Details of this Determination are set out in the Attachment.
Consultation
As the increase to the subsidy is in accordance with the 2009-10 Budget Measure – Measures to Support Older Australians - Aged care viability supplements increase. The policies reflected in the Amending Principle were the subject of consultation with the aged care sector through the Ageing Consultative Committee, which comprises peak industry, professional and consumer bodies.
Information about the increase in the amount of the subsidy will be disseminated via print and electronic media to approved providers.
ATTACHMENT
NOTES ON CLAUSES
Part 1 – Preliminary
Section 1 provides that the title of the Determination is the Aged Care (Amount of flexible care subsidy – multi-purpose services) Determination 2009 (No.2).
Section 2 provides that the Determination will commence on 1 January 2010.
Section 3 revokes the previous Determination Aged Care (Amount of flexible care subsidy – multi-purpose services) Determination 2009, entitled (No.1), also known as F2009L02387.
Section 4 makes clear that this Determination applies only to flexible care services that are multi-purpose services.
Section 5 defines certain types of services and categories of service, types of care places, a type of locality classification, and a payment rate.
Sections 6, 7 and 8 set out the criteria for Category A, B and C services. These criteria relate to location and the volume of beds or places. Whether or not a multi-purpose service meets the prescribed requirements is based on a points system.
The criteria for a Category A service includes criteria in respect of the inability of the multi-purpose service to co-locate with another service, and the types of residents (i.e. whether they are supported, concessional or assisted residents).
The criteria for a Category B or C service include a criterion in respect of the volume of care recipients with special needs.
Clauses 6, 7 and 8 each define terms that are specific to that clause.
Part 2 – Amount of flexible care subsidy
Section 9 sets out a formula for calculating the amount of flexible care subsidy that is payable in respect of a day.
Section 10 sets out the formulae for calculating the amount of flexible care subsidy that is payable in respect of a day for a high care place, for particular types of multi-purpose services.
Section 11 sets out the formula for calculating the amount of flexible care subsidy that is payable in respect of a day for a low care place.
Section 12 provides a table which specifies the amount of respite supplement equivalent amount in respect of a day for the total number of high care and low care places allocated.
Section 13 provides a table which specifies the additional amount of community care subsidy in respect of a day depending on the Accessibility/Remoteness Index of Australia.
Schedule 2 – Concessional resident equivalent amounts
This schedule is provided for the purpose of clauses 10 and 11 of this Determination. The table specifies the concessional resident equivalent amounts in respect of 65 locations. These amounts are used in calculating applicable amounts for high and low care places.
Schedule 3 – Adjusted subsidy reduction multi-purpose services
This schedule is provided for the purpose of clauses 5 and 10 of this Determination. The table specifies the adjusted subsidy reduction factor in respect of 21 multi-purpose services. These factors are used in calculating applicable amounts for high care places, and in defining an adjusted subsidy reduction multi-purpose service.
Schedule 4 – Viability supplement equivalent amounts
This schedule is provided for the purpose of clauses 5, 6, 7 and 8 of this Determination.
Clause 1 of Schedule 4
This clause provides a table that specifies the viability supplement equivalent amounts in respect of 10 degrees of isolation. These amounts are used for determining whether a multi-purpose service is a Category A service, and in defining a viability supplement equivalent amount. This clause also defines terms that are used in the table.
Clause 2 of Schedule 4
This clause provides a table that specifies the viability supplement equivalent amounts in respect of a range of scores. These amounts are used for determining whether a multi-purpose service is a Category B service, and in defining a viability supplement equivalent amount.
Clause 3 of Schedule 4
This clause provides a table that specifies the viability supplement equivalent amounts in respect of a range of scores. These amounts are used for determining whether a multi-purpose service is a Category C service, and in defining a viability supplement equivalent amount.
The amount of viability supplement payable for Category C services has increased in this Determination in accordance the 2009 – 10 Budget Measure - Measures to Support Older Australians - Aged care viability supplements increase.