EXPLANATORY STATEMENT
SECTION 52-1
AGED CARE ACT 1997
FLEXIBLE CARE (TRANSITION CARE) SUBSIDY AMOUNT DETERMINATION
(ACA Ch. 3 No. 19/2007)
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 50-2(1) of the Act provides that the Flexible Care Subsidy Principles may specify the kinds of care for which flexible care subsidy may be payable. The Flexible Care Subsidy Principles 1997 presently provide for four types of flexible care. These kinds of care are extended aged care at home services, multi-purpose services, innovative care services and transition care.
Paragraph 52-1(1) provides that the Minister may determine in writing the amount of the Flexible Care Subsidy.
The present Determination (“the Determination”) specifies that the amount of flexible care subsidy that is payable for flexible care in the form of transition care for each day that an approved provider’s flexible care place is occupied by a care recipient who is approved to receive, and is provided with, transition care on that day, is $106.93 from 1 July 2007.
The Determination may be cited as ACA Ch. 3 No. 19/2007.
The Determination revokes the Flexible Care (Transition Care) Subsidy Amount Determination 2006 also known as ACA Ch. 3 No. 13 2006.
All residential care subsidy rates are indexed on 1 July each year. The index incorporates movements in wage costs and non-wage costs. The wage costs component is calculated using the annualised dollar figure of the October 2006 Federal Minimum Wage decision of the Australian Fair Pay Commission expressed as a proportion of the (latest available) Average Weekly Ordinary Time Earnings at the time of the AFPC decision. The non-wage costs index is based on the Consumer Price Index exclusive of the impact of A New Tax System consistent with a whole of government decision.
Consultation
As the indexation of this rate of subsidy uses a well-established formula for indexation, no specific consultation with industry was undertaken with respect of this Determination.