Aged Care (Amount of Flexible Care Subsidy - Transition Care Services) Determination 2012 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2012L01408 Not in force Legislative Instrument

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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

 

 

Overview

The Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2012 (No. 1) was enacted to address the need for a standardised flexible care subsidy rate for transition care services provided across all states and territories in Australia. This Determination was issued under the Aged Care Act 1997 by the Australian Parliament, with the policy objective of ensuring that providers of transition care services receive a fair and equitable subsidy rate that reflects changes in the economic environment, such as inflation and wage movements, while maintaining the quality of care provided to older individuals post-hospitalisation. Effective from 1 July 2012, the Determination established a single national daily rate for transition care subsidies, replacing the previous differential rates based on the speed of the service rollout across various states and territories. This change was calculated using a formula that incorporates the Consumer Price Index and Fair Work Australia’s minimum wage decisions to ensure that no region is disadvantaged by the transition to a uniform subsidy rate.

Scope and Application

The Aged Care Act 1997 regulates and funds aged care services, including the provision of flexible care subsidy payments to approved providers who offer flexible aged care services to approved care recipients. Transition care, a form of flexible care, is eligible for these subsidies and provides therapeutic care and support for up to 18 weeks post-hospitalisation. The Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2012 (No. 1) specifies the daily rate of subsidy for transition care services, effective from 1 July 2012, and replaces the previous 2011 rates. This determination applies nationally across all states and territories, reflecting a unified approach to subsidy rates following the completion of the roll-out of additional care places. The new rates were calculated using a formula that considers the Consumer Price Index and wage decisions by Fair Work Australia, ensuring a fair and equitable approach. This legislative instrument is compatible with human rights, as it does not engage any of the applicable rights or freedoms as recognised or declared in the international instruments under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The main provisions of the Aged Care (Amount of Flexible Care Subsidy – Transition Care Services) Determination 2012 (No. 1) establish the amount of the flexible care subsidy that is payable for transition care services provided under the Aged Care Act 1997 (section 1). This legislation mandates that the daily rate of Transition Care subsidy is a single rate for all states and territories, effective from 1 July 2012 (section 3). The calculation of this rate is based on an increase of the maximum daily amount payable in any state or territory in 2011-12, using a formula that considers the Consumer Price Index (CPI) and decisions of Fair Work Australia concerning non-productivity based movements in wage costs (section 4). Under this Determination, obligations are placed on approved providers of flexible aged care services to adhere to the new single rate of Transition Care subsidy as set out in the legislation (section 5). Approved providers must ensure that they bill and receive the correct subsidy amount for each day a care recipient occupies a flexible care place, as determined by the new rates (section 6). Furthermore, the approved providers must be aware of and comply with the commencement date of the Determination, which is 1 July 2012 (section 7). Breach of the provisions in this Determination may not explicitly state civil or criminal penalties, but non-compliance with the stipulated subsidy rates could potentially lead to financial discrepancies, audits, and corrective actions by the relevant authorities (section 8). While the Determination does not detail specific penalties, failure to adhere to the set rates could result in the provider owing or being overpaid subsidies, which would need to be rectified (section 9). Additionally, persistent non-compliance could result in the provider losing eligibility for subsidy payments or facing other regulatory actions under the Aged Care Act 1997 (section 10).

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Aged Care Law
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Legislative Instrument
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Definitions & Interpretation
Commencement Provisions
Regulatory Standards
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