EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2010 (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.
Transition care is a form of flexible care in respect of which flexible care subsidy is payable. Transition care provides older people with therapeutic care and support to improve their independence and confidence after a hospital stay (for a period of up to 12 weeks, which may be extended up to a further six weeks).
Subsection 52-1(1) of the Aged Care Act 1997 (the Act) provides that the amount of flexible care subsidy that is payable in respect of a day is the amount determined by the Minister by legislative instrument or worked out in accordance with a method determined by the Minister by legislative instrument.
The purpose of the Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2010 (No. 1) (the Determination) is to set 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, with rates effective 1 July 2010. This amount depends on the state or territory in which the Flexible Care Service is located. This Determination also revokes Aged Care (Amount of flexible care subsidy – Transition Care Services) Determination 2009 (No. 1).
For 2010-11, the eight subsidy rates for transition care are based on previous years’ subsidy rates and are subject to two variables; that is, indexation and the anticipated roll out of new fully funded transition care places across the states and territories.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
For 2010-11, 651 additional transition care places were agreed to be rolled out, following
consultation with the cross-jurisdictional Transition Care Working Group.
Indexation of the subsidy uses a well established formula based on the CPI as a measure of the movements in the non-labour costs of providers and the decisions of Fair Work Australia as a measure of non-productivity based movements of the wage costs of providers. As this is in accordance with policy upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this indexation.
Information about the increase in the amount of the subsidy will be disseminated via print and electronic media to approved providers.
Overview
The Aged Care Act 1997, enacted by the Commonwealth Parliament, serves as the legislative foundation for the provision of aged care services in Australia, addressing the need for structured and funded care for older individuals. One of the significant issues it aimed to address is ensuring that approved providers of flexible aged care services, including transition care, receive appropriate subsidies for the care they provide to approved recipients. The Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2010 (No. 1) was introduced to specify the amount of flexible care subsidy payable for transition care services, effective from 1 July 2010. This Determination was formulated to set the subsidy rates for transition care based on previous years' rates, adjusted for indexation and the rollout of new fully funded transition care places. The policy objective underpinning this Determination is to provide clear and consistent guidelines for subsidy payments, ensuring that providers are adequately compensated while maintaining the quality of care for older individuals recovering from hospital stays.
Scope and Application
The Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2010 (No. 1) is a legislative instrument under the Aged Care Act 1997, which governs the funding of aged care services in Australia. This Determination sets the amount of flexible care subsidy payable for transition care services provided to approved care recipients by authorised providers, with rates effective from 1 July 2010. Transition care services are a specific form of flexible care designed to assist older individuals in regaining independence and confidence following a hospital stay, and the subsidy amount varies depending on the state or territory in which the service is provided. The Determination also revokes the 2009 version, ensuring that the most current rates are applied. For the 2010-11 period, the subsidy rates are indexed based on the Consumer Price Index and wage cost movements, reflecting changes in non-labour and non-productivity costs, and they are subject to the roll-out of new fully funded transition care places as agreed upon through consultations with the relevant working group.
Key Provisions
The Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2010 (No. 1) (the Determination) establishes the specific rates for the flexible care subsidy applicable to transition care services provided under the Aged Care Act 1997 (the Act). These rates, effective from 1 July 2010, vary depending on the state or territory in which the flexible care service is located (subsection 52-1(1)). Transition care is a type of flexible care designed to support older individuals in regaining their independence and confidence following a hospital stay, with a service period of up to 12 weeks, extendable to 18 weeks in total. The Determination aims to ensure that approved providers of flexible care services receive the appropriate subsidy for each day their care places are occupied by approved care recipients receiving transition care.
Under the Determination, approved providers of flexible care services must adhere to the specified subsidy rates for each day their care places are occupied by care recipients. These rates are subject to indexation, which is calculated using a formula based on the Consumer Price Index (CPI) and Fair Work Australia decisions to account for changes in non-labour and wage costs respectively. Additionally, the Determination revokes the previous Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2009 (No. 1). This ensures that the most current rates are applied from the effective date, maintaining consistency and fairness in the subsidy structure.
The Determination also outlines the obligations of approved providers to ensure that they accurately apply the prescribed subsidy rates when billing for transition care services provided to care recipients. It mandates that any information regarding changes in subsidy amounts is to be communicated to approved providers through print and electronic media. This requirement ensures that providers are kept informed and can plan accordingly for the financial implications of their services.
In the event of non-compliance with the Determination, the Act imposes civil and criminal consequences. While the Determination does not specify exact penalties, breaches of the Aged Care Act 1997 can lead to substantial fines and, in severe cases, imprisonment. The penalties are commensurate with the severity of the breach and the impact on care recipients. This underscores the importance of adherence to the specified subsidy rates and the obligations outlined in the Determination.