EXPLANATORY STATEMENT
AGED CARE ACT 1997 SUBSECTION 52-1(1)
AGED CARE (AMOUNT OF FLEXIBLE CARE SUBSIDY – TRANSITION CARE) DETERMINATION 2008
(ACA Ch. 3 No. 22/2008)
FLEXIBLE CARE SUBSIDY – TRANSITION CARE
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 1997 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 (including extended aged care at home – dementia), multi-purpose services, innovative care services and transition care.
Paragraph 52-1(1)(a) provides that the Minister may determine in writing the amount of the Flexible Care Subsidy while paragraph 52-1(1)(b) provides that the Flexible Care Subsidy may be worked out in accordance with a method determined by the Minister.
This Determination specifies the amount of flexible care subsidy from 1 July 2008 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. This amount depends on the State or Territory in which the Flexible Care Service is located.
The Determination revokes the Aged Care (Amount of flexible care subsidy – Transition Care) Determination 2007 also known as ACA Ch. 3 No. 19/2007.
Consultation
Many aged care subsidy rates relating to care 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.
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.