EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Community Care Subsidy Amount) 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 community aged care services can be eligible to receive community care subsidy payments in respect of the care they provide to approved care recipients.
Community care is care consisting of a package of personal care services and other personal assistance provided to a person who is not being provided with residential care. An approved provider is eligible for community care subsidy if it holds an allocation of places for community care subsidy and has a community care agreement in force with an approved care recipient and provides community care in accordance with that agreement.
Subsection 48-1(3) of the Aged Care Act 1997 (the Act) provides that the amount of community care subsidy that is payable to an approved provider 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 (Community Care Subsidy Amount) Determination 2010 (No. 1) (the Determination) is to specify the method for working out the amount of community care subsidy payable for a day in respect of a community care recipient, with rates effective from 1 July 2010. This Determination also revokes Aged Care (Community Care Subsidy Amount) Determination 2009 (No. 1).
The difference between the Determinations is that the daily amount of community care subsidy payable has been increased in accordance with increases in the consumer price index (CPI) as a measure of 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. This Determination also implements the 2010-11 Budget measure ‘National Health and Hospitals Network – Aged Care – improving the viability of community care providers’. Under this initiative, a total of $10.1 million over four years is provided to increase the viability supplement paid to eligible community aged care providers in rural and remote areas, including eligible Community Aged Care Package providers.
The total amount of community care subsidy payable in respect of a care recipient is the sum of following amounts as set out in the Determination:
- the base subsidy amount
- an additional daily amount payable to an approved provider of community care who provides community care to a care recipient in a rural or remote location, provided that location has an Accessibility/Remoteness Index of Australia (ARIA) score of 3.52 or more. The additional daily amount increases as the ARIA score (the measure of accessibility and remoteness of the geographical location at which the care recipient resides) increases.
Under the ARIA, each suburb and town in Australia is allocated an ARIA score based on its accessibility and remoteness. ARIA scores for all Australian locations are contained in the document entitled Viability Funding — ARIA scores for locations as at 30 July 1999, published by the Department of Health and Ageing.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The need for increased support for rural and remote community aged care providers has emerged from the Government’s consultations on the National Health and Hospitals Network.
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 Australian Parliament, addresses the need for funding mechanisms for aged care services, allowing approved providers to receive community care subsidy payments for services rendered to approved care recipients. This legislation facilitates the provision of personal care services and other personal assistance to individuals not receiving residential care. The Aged Care (Community Care Subsidy Amount) Determination 2010 (No. 1) was introduced to specify the method for calculating the community care subsidy payable per day for a care recipient, effective from 1 July 2010. This Determination also aims to improve the viability of community care providers by increasing the subsidy amounts in line with the consumer price index and Fair Work Australia's wage cost decisions. Additionally, it provides a higher subsidy for providers in rural and remote areas, as identified by the Accessibility/Remoteness Index of Australia (ARIA) scores, reflecting a commitment to support care provision in less accessible locations.
Scope and Application
The Aged Care (Community Care Subsidy Amount) Determination 2010 (No. 1) applies to approved providers of community aged care services under the Aged Care Act 1997. These providers can receive community care subsidy payments for the care they deliver to approved care recipients. The subsidy is intended for care that includes personal care services and other personal assistance provided to individuals not in residential care. To be eligible for the subsidy, providers must hold an allocation of places for community care subsidy, have a community care agreement with an approved care recipient, and provide care in accordance with that agreement. The Determination specifies the method for calculating the amount of community care subsidy payable for a day in respect of a community care recipient, effective from 1 July 2010. It also includes an increased daily subsidy amount, reflecting changes in the consumer price index and decisions of Fair Work Australia, and implements a budget measure aimed at enhancing the viability of community care providers, particularly in rural and remote areas. This initiative provides a total of $10.1 million over four years to increase the viability supplement for eligible providers in these regions.
Key Provisions
The Aged Care (Community Care Subsidy Amount) Determination 2010 (No. 1) (the Determination) specifies the method for calculating the amount of community care subsidy payable for a day for a community care recipient, with rates effective from 1 July 2010. This Determination replaces the Aged Care (Community Care Subsidy Amount) Determination 2009 (No. 1) and includes an increase in the daily amount of community care subsidy payable, reflecting changes in the consumer price index (CPI) and decisions of Fair Work Australia. The Determination also provides for an additional daily amount to be paid to approved providers who offer community care to recipients in rural or remote areas, as identified by an Accessibility/Remoteness Index of Australia (ARIA) score of 3.52 or more. The additional daily amount increases with higher ARIA scores. The total amount of community care subsidy payable for a care recipient is the sum of the base subsidy amount and any additional daily amount payable, as outlined in the Determination.
Approved providers of community aged care services who hold an allocation of places for community care subsidy, have a community care agreement in force with an approved care recipient, and provide community care in accordance with that agreement are eligible to receive community care subsidy payments. The Determination mandates that the subsidy amount is determined using the formula specified within the Determination, and additional payments are made for care provided in rural and remote areas based on the ARIA score. The ARIA scores are used to assess the accessibility and remoteness of the geographical location at which the care recipient resides, with the scores contained in the document Viability Funding—ARIA scores for locations as at 30 July 1999, published by the Department of Health and Ageing.
The Determination sets out specific obligations for approved providers, including the requirement to provide care in accordance with their community care agreement, and to apply for and receive the appropriate community care subsidy payments. Approved providers must also ensure that the care provided meets the standards and criteria set out in the Aged Care Act 1997 and any relevant community care agreements. The Determination imposes obligations on the Minister for Ageing to determine the method for calculating the subsidy amount and to ensure that the necessary information is disseminated to approved providers.
Any breach of the provisions of the Aged Care Act 1997 or the Determination may result in civil or criminal consequences. The maximum penalties for breaches of the Aged Care Act 1997 include fines of up to $22,000 for individuals and $110,000 for bodies corporate, as well as potential imprisonment for serious offences. The Determination itself does not specify any additional penalties for breaches of its provisions; however, it is subject to the general legal consequences that may apply under the Aged Care Act 1997. Compliance with the Determination is therefore critical for approved providers to avoid any potential legal repercussions.