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.
Overview
The Aged Care (Amount of Flexible Care Subsidy – Transition Care) Determination 2008 (ACA Ch. 3 No. 22/2008) was introduced to specify the amount of flexible care subsidy payable for transition care under the Aged Care Act 1997, effective from 1 July 2008. This determination was enacted by the Minister for Health and Ageing in accordance with subsection 52-1(1) of the Act, revoking the previous Aged Care (Amount of flexible care subsidy – Transition Care) Determination 2007. The underlying objective of this legislation is to ensure that approved providers of flexible aged care services, specifically those delivering transition care, receive appropriate subsidy payments. The amount of the subsidy is determined based on the location of the service within a State or Territory, and the indexation formula used incorporates movements in wage costs and non-wage costs to reflect changes in economic conditions.
Scope and Application
The Aged Care (Amount of Flexible Care Subsidy – Transition Care) Determination 2008 applies to approved providers of flexible aged care services in Australia, specifically those offering transition care services to approved care recipients. This determination is made under the Aged Care Act 1997, which governs the funding of aged care services, and it specifies the amount of flexible care subsidy payable for transition care on a daily basis. The amount is determined based on the state or territory in which the service is provided. This legislation revokes the previous Aged Care (Amount of Flexible Care Subsidy – Transition Care) Determination 2007 and is applicable nationally, covering all states and territories in Australia. There are no exclusions or exemptions specified in this determination, but the application and enforcement of the subsidy may be extended or restricted through subordinate instruments. The determination itself is based on a well-established formula for indexation, which considers wage costs and non-wage costs, and does not require specific consultation with industry for changes.
Key Provisions
The main operative sections of the Aged Care (Amount of Flexible Care Subsidy – Transition Care) Determination 2008 (subsection 52-1(1)) specify the amount of flexible care subsidy payable for transition care provided by approved providers from 1 July 2008. This amount varies depending on the State or Territory in which the flexible care service is located. This Determination replaces the Aged Care (Amount of Flexible Care Subsidy – Transition Care) Determination 2007 (ACA Ch. 3 No. 19/2007) with updated rates effective from the stated date. The rate of subsidy is indexed annually to account for changes in wage and non-wage costs, using a formula that incorporates the October 2006 Federal Minimum Wage decision of the Australian Fair Pay Commission and the Consumer Price Index exclusive of the impact of A New Tax System.
Under this Act, the obligations and requirements imposed on the parties include the approval of providers to deliver flexible aged care services and the eligibility of care recipients for receiving transition care. Approved providers must comply with the specified subsidy rates as outlined in the Determination for the care they provide. Care recipients must be approved to receive transition care and must be receiving this care on the days when the flexible care subsidy is applicable. The providers must ensure that they occupy their flexible care places with approved care recipients who are provided with the specified transition care.
There are no direct offences, penalties, or civil/criminal consequences stipulated within the Determination itself. However, failure to comply with the requirements of the Aged Care Act 1997 or the Flexible Care Subsidy Principles 1997 could lead to broader regulatory actions, including the possibility of penalties under the main Act. The Aged Care Act 1997 provides for various regulatory and enforcement mechanisms, including the imposition of fines and other penalties, which may be applicable in cases of non-compliance with the Act's provisions. The specific penalties would be determined according to the relevant sections of the main Act, which could include substantial fines for breaches.