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 2012 (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 2012 (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 2012. This Determination also revokes Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2011 (No. 1).
The daily rate of Transition Care subsidy to be paid in 2012-13 is now one single rate for all states and territories. The roll out of 2,000 additional places between 2008-09 and 2011-12 has been completed and there is no longer a need to have different subsidy rates depending on the speed of the roll out in each state and territory. The new single rate of subsidy was calculated by increasing the maximum daily amount payable in any state and territory in 2011-12 in accordance with a well established formula that takes into account the Consumer Price Index as a measure of the non-labour costs of providers, and the minimum wage decisions of Fair Work Australia as a measure of the non-productivity based movements in the wage costs of providers. This method ensures that no state or territory is disadvantaged by reverting to a single national subsidy amount.
Consultation
Indexation of the maximum subsidy rate payable in any State or Territory 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 electronic media to approved providers.
This Determination commences on 1 July 2012.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2012 (No. 1)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of Legislative Instrument
The purpose of the Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2012 (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 2012.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Mark Butler
Minister for Mental Health and Ageing