EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2011 (No. 1)
The Aged Care Act 1997 (the Act) provides for the regulation and 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 2011 (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 2011. 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 2010 (No. 1).
For 2011-12, 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.
From 1 July 2012 when all transition care places are fully operational, there will be a single national rate for transition care.
Consultation
For 2011-12, 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 Consumer Price Index 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 in 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 electronic media to approved providers.
This Determination commences on 1 July 2011.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2011 (No. 1) was enacted by the Minister for Mental Health and Ageing to address the need for setting specific rates of flexible care subsidies for transition care services under the Aged Care Act 1997. This Determination aims to establish the amount of flexible care subsidy payable for transition care services for each day a care recipient occupies an approved provider's flexible care place, with rates effective from 1 July 2011. The rates vary depending on the state or territory in which the service is located and are subject to indexation and the roll-out of new fully funded transition care places. The policy objective is to provide clear guidelines for subsidy payments, ensuring consistency and fairness in the funding of transition care services across Australia. This Determination revokes the previous Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2010 (No. 1).
Scope and Application
The Aged Care Act 1997 governs the regulation and funding of aged care services in Australia, applying to entities and individuals approved to provide flexible aged care services, particularly transition care services, which aim to support older individuals in regaining their independence and confidence after hospital stays. This legislation sets the framework for the provision of flexible care subsidies to approved providers for the care they deliver to approved recipients. The Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2011 (No. 1) specifies the amount of subsidy payable for each day of transition care, varying by state or territory, with rates effective from 1 July 2011, and it revokes the 2010 equivalent. From 1 July 2012, a single national rate for transition care will be implemented once all transition care places are fully operational. This Determination, which is a legislative instrument under the Legislative Instruments Act 2003, also includes provisions for indexation based on the Consumer Price Index and decisions by Fair Work Australia.
Key Provisions
The Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2011 (No. 1) (the Determination) outlines the rates at which flexible care subsidies are payable for transition care services, effective from 1 July 2011. According to subsection 52-1(1) of the Aged Care Act 1997, the amount of the subsidy for each day is determined by the Minister, and this Determination sets those rates. The rates vary based on the state or territory in which the care is provided, reflecting regional differences in costs. This Determination replaces the Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2010 (No. 1).
The Determination imposes specific obligations on the parties involved. Approved providers of flexible aged care services who offer transition care to approved care recipients must ensure that the care provided is in accordance with the Act and the rates set out in the Determination. They must also accurately report their services to receive the appropriate subsidy payments. The Act mandates that care recipients approved for transition care must be provided with the therapeutic support outlined in the Determination to facilitate their recovery and improved independence post-hospitalisation.
Breaching the provisions of the Determination can result in civil and criminal consequences. Failure to adhere to the subsidy rates or providing services that do not meet the standards set out in the Act may lead to penalties. Although the specific penalties are not detailed in the text, breaches of aged care legislation generally can result in significant fines and, in severe cases, criminal charges. The exact penalties would be governed by the broader provisions of the Aged Care Act 1997 and related regulations. Accurate record-keeping and compliance with the rates and conditions specified in the Determination are essential to avoid these consequences.