AC(CP)A Ch3 No. 1/2007
EXPLANATORY STATEMENT
AGED CARE (CONSEQUENTIAL PROVISIONS) ACT 1997
SUBSECTION 60 (1)
Determination of additional amount payable in respect of residential care services (AC(CP)A Ch 3 No. 1/2007)
Subsection 60(1) of the Aged Care (Consequential Provisions) Act 1997 (the Act) provides that the Minister may specify circumstances in which additional amounts in respect of residential care services in respect of which residential care subsidy are payable under section 43-1 of the Aged Care Act 1997.
In accordance with subsection 60(1) of the Act, the Determination of additional amount payable in respect of residential care services (AC(CP)A Ch 3 No. 1/2007) (the Determination) specifies circumstances in which an additional amount (the Interim Accommodation Supplement) is payable to an approved provider under section 43-1 of the Aged Care Act.
From 1 July 2007, pending the introduction of new accommodation charge and subsidy arrangements on 20 March 2008, the Australian Government will pay aged care providers an Interim Accommodation Supplement in respect of each care recipient approved for a high level of residential care under the Aged Care Act who is provided with care of that type in a residential care service and for whom a residential care subsidy is payable. The Interim Accommodation Supplement will be paid from 1 July 2007 to 19 March 2008 (inclusive).
Providers will receive the supplement in respect of a resident for a day if on that day subsidy is payable for the resident and they:
- were classified as receiving high level care under the Resident Classification Scale; or
- had a classification that had lapsed, but whose most recent classification was for high level care under the Resident Classification Scale; or
- were not yet classified, but had an approval for residential care under the Aged Care Act that was not restricted to low level care; or
- were a respite resident whose approval was not restricted to low level care.
The subsidy will not be paid in respect of:
- residents who receive care on an extra service basis (in line with the arrangements that apply for the concessional resident supplement);
- occupants of flexibly-funded places;
- permanent residents (including those on leave) for whom a subsidy is not payable;
- respite residents for whom a subsidy is not payable;
- provisional allocations; and
- off-line allocations.
The Interim Accommodation Supplement will be paid in three instalments, following processing of a provider’s claims for the September 2007, December 2007 and March 2008 payment periods.
The amount of each instalment payable to an approved provider under section 43-1 of the Aged Care Act will equal to $3.50 times the number of eligible care days:
- from 1 July 2007 to 30 September 2007 (inclusive), for the first instalment;
- from 1 October 2007 to 31 December 2007 (inclusive), for the second instalment; and
- from 1 January 2008 to 19 March 2008 (inclusive) for the third instalment.
The amount of a provider’s instalment payment will be determined once a provider’s claim has been finalised for all of the payment periods in the instalment period.
There will be no retrospective adjustment of the amount of a provider’s instalment payment, up or down, once the amount has been determined (except in the case of fraudulent behaviour).
The Determination is a “legislative instrument” for the purposes of the Legislative Instruments Act 2003.
Consultation
The Interim Accommodation Supplement was announced as part of the Securing the future of aged care for Australians reform package. This is the Government’s final response to Professor Warren Hogan’s independent Review of Pricing Arrangements in Residential Aged Care. Professor Hogan held extensive consultations with the industry as part of his Review.