Aged Care (Community Care Subsidy Amount) Determination 2012 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2012L01417 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Mental Health and Ageing

 

Aged Care Act 1997

 

Aged Care (Community Care Subsidy Amount) 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 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 2012 (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 2012.  This Determination also revokes Aged Care (Community Care Subsidy Amount) Determination 2011 (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 provides some additional funding available under 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.

 

Consultation

With regard to the 2010-11 Budget measure ‘National Health and Hospitals Network – Aged Care – improving the viability of community care providers, the need for increased support for rural and remote community aged care providers emerged from the Government’s consultations on the National Health and Hospitals Network. As the increase to the viability supplement paid to eligible community aged care providers is in accordance with this Budget measure, no specific consultation was undertaken with respect to this increase.

 

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 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 (Community Care Subsidy Amount) 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 (Community Care Subsidy Amount) Determination 2012 (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 2012.  This Determination also revokes Aged Care (Community Care Subsidy Amount) Determination 2011 (No. 1). 

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 Act 1997 was enacted to provide for the regulation and funding of aged care services in Australia. The Act establishes a framework for ensuring that aged care services are provided efficiently and effectively to meet the needs of the elderly population. The Aged Care (Community Care Subsidy Amount) Determination 2012 (No. 1) was introduced to address the need for a consistent and updated method to calculate the community care subsidy payments that are made to providers of community aged care services. This Determination, issued by the Minister for Mental Health and Ageing, aims to ensure that the subsidy rates reflect current economic conditions and the specific needs of providers in rural and remote areas. The policy objective is to maintain the viability of community care providers by providing adequate funding while ensuring the system remains responsive to changes in the cost of living and workforce conditions.

Scope and Application

The Aged Care (Community Care Subsidy Amount) Determination 2012 (No. 1) applies to approved providers of community aged care services in Australia who hold an allocation of places for community care subsidy and have a community care agreement in force with an approved care recipient. The Act applies on a Commonwealth level, regulating and funding aged care services across the nation. The Determination specifies the method for calculating the amount of community care subsidy payable to these approved providers for the care they provide to recipients under community care agreements, with the rates effective from 1 July 2012. The amount of community care subsidy is influenced by increases in the consumer price index and decisions of Fair Work Australia, which measure movements in non-labour and wage costs respectively. Additionally, the Determination provides for increased funding to eligible providers in rural and remote areas, enhancing the viability supplement under the 2010-11 Budget measure. This Determination revokes the Aged Care (Community Care Subsidy Amount) Determination 2011 (No. 1) and is a legislative instrument under the Legislative Instruments Act 2003.

Key Provisions

The Aged Care (Community Care Subsidy Amount) Determination 2012 (No. 1) (the Determination) is a legislative instrument that specifies the method for calculating the community care subsidy payable for each day of care to a community care recipient, effective from 1 July 2012 (Section 1). This Determination also revokes the Aged Care (Community Care Subsidy Amount) Determination 2011 (No. 1) (Section 2). The community care subsidy is payable to an approved provider who holds an allocation of places for community care subsidy, has a community care agreement in force with an approved care recipient, and provides community care in accordance with that agreement (Section 48-1(3) of the Aged Care Act 1997). The total amount of community care subsidy payable in respect of a care recipient is the sum of the base subsidy amount and any additional daily amount payable to a provider who provides community care to a care recipient in a rural or remote location, determined by the Accessibility/Remoteness Index of Australia (ARIA) score of the location (Section 3 of the Determination). The Determination imposes obligations on approved providers to ensure they meet the eligibility criteria for receiving community care subsidy payments, including holding an allocation of places for community care subsidy and having a community care agreement in force with an approved care recipient. The approved provider must also provide community care in accordance with the agreement. The Determination further requires approved providers to calculate the amount of community care subsidy payable using the specified method and rates set out in the Determination. It is also required that approved providers provide any necessary information or documentation to support their subsidy claims. The Aged Care Act 1997 does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach in relation to the community care subsidy payments. However, failure to comply with the obligations and requirements imposed by the Determination may result in the withholding of subsidy payments or the recovery of overpaid amounts. Additionally, providing false or misleading information in support of subsidy claims may constitute fraud, which could lead to criminal charges and penalties under the Commonwealth Criminal Code Act 1995. The maximum penalties for fraud can include imprisonment for up to 10 years, fines, or both.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.