EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Determination under Section 52-1
Aged Care (Amount of flexible care subsidy – Transition Care Services) Determination 2009 (No. 1)
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 provides 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 by legislative instrument 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 by legislative instrument.
This Determination specifies the amount of flexible care subsidy from 1 July 2009 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.
This Determination revokes the Determination ACA Ch. 3 No. 22/2008, Legislative Instrument F2008L02239.
Consultation
The eight subsidy rates for transition care are based on the number of existing jointly funded and fully funded places and on the anticipated roll-out of 470 additional transition care places during 2009-10. The number of additional transition care places for 2009-10 was agreed, in consultation with, the cross-jurisdictional Transition Care Working Group.
Information about the increase in the amount of the supplement will be disseminated via print and electronic media to approved providers.
Overview
The Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2009 was enacted to provide a legislative framework for the flexible care subsidy rates applicable to transition care services across various states and territories in Australia, as outlined in the Aged Care Act 1997. This legislation was introduced by the Australian Government to address the need for standardised and equitable subsidy rates for transition care services, ensuring that approved providers receive appropriate compensation for their services. This Determination, made under the authority of the Minister for Ageing, specifies the amount of flexible care subsidy for each day a care recipient occupies a transition care place, varying by the location of the service. It replaces a previous Determination from 2008, reflecting updated rates and considerations based on current funding models and anticipated service expansions, as agreed with the Transition Care Working Group. The policy objective is to ensure the fair and adequate funding of transition care services, supporting both existing and new care recipients.
Scope and Application
The Aged Care Act 1997, through its various provisions and the Flexible Care Subsidy Principles 1997, facilitates the funding of aged care services in Australia, including the provision of flexible care subsidy payments to approved providers for the care they deliver to eligible recipients. Specifically, the Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2009 (No. 1) establishes the rates of flexible care subsidy for transition care services rendered by approved providers, with these rates varying based on the State or Territory in which the services are provided. This legislation applies to entities approved under the Act to deliver flexible aged care services, with a focus on transition care services, and encompasses all approved providers and care recipients. The Determination supersedes previous legislative instruments, such as the Determination ACA Ch. 3 No. 22/2008, Legislative Instrument F2008L02239, ensuring that the most current rates are applied from 1 July 2009 onwards. The application of these rates is informed by consultations with the cross-jurisdictional Transition Care Working Group and will be communicated to stakeholders through various media channels.
Key Provisions
The Aged Care Act 1997 (the Act) provides for the funding of aged care services, and under Section 52-1, the Minister has the authority to determine the amount of the Flexible Care Subsidy, which is payable for flexible care in the form of transition care. The Aged Care (Amount of flexible care subsidy – Transition Care Services) Determination 2009 (No. 1) specifies the rates of subsidy payable from 1 July 2009. The rates vary depending on the State or Territory in which the Flexible Care Service is located. This Determination replaces the previous Determination ACA Ch. 3 No. 22/2008, Legislative Instrument F2008L02239.
Under the Act, providers approved to offer flexible aged care services can receive Flexible Care Subsidy payments for the care they provide to approved care recipients. The Flexible Care Subsidy Principles 1997 identifies the types of flexible care eligible for subsidy, which include extended aged care at home services, multi-purpose services, innovative care services, and transition care. The amount of subsidy payable for transition care services is determined by this legislative instrument, and it is calculated on a per day basis when a care recipient occupies a provider’s flexible care place.
The Act imposes obligations on both providers and recipients of aged care services. Providers must ensure they meet the eligibility criteria to offer flexible care services and receive subsidy payments. Recipients must be approved to receive transition care and must be provided with the care as outlined in the Flexible Care Subsidy Principles 1997. Approved providers must comply with the rates specified in the Determination when claiming their subsidy payments.
Breach of the requirements under the Act can lead to various consequences. For example, failure to comply with the subsidy rates specified in the Determination can result in incorrect subsidy claims. This could lead to an investigation by the Department of Health, with potential for financial recovery of any overpaid subsidies. While specific offences and penalties are not detailed in this Determination, breaches of the Aged Care Act 1997 can lead to significant penalties under the broader legislative framework, including fines and imprisonment for serious or repeated breaches. The exact penalties depend on the nature and severity of the breach.