EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Aged Care (Flexible Care Subsidy Amount - Innovative Care) Determination 2013 (No. 2)
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 care recipients.
Subsection 52-1(1) of 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. Subsection 52‑1(2) of the Act provides that the Minister may determine rates of flexible care subsidy based on any matters determined by the Minister by legislative instrument.
The purpose of the Aged Care (Flexible Care Subsidy Amount—Innovative Care) Determination 2013 (No. 2) is to specify the amount of flexible care subsidy payable to an approved provider in respect of innovative care provided to a care recipient.
As part of the Living Longer Living Better aged care reforms, approved providers of innovative care will receive an amount in addition to the basic subsidy amount if they provide care to a care recipient who is eligible for the dementia and cognition supplement or the veterans’ supplement.
This Determination repeals the Aged Care (Amount of Flexible Care Subsidy—Innovative Care) Determination 2013 (No. 1).
This Determination also repeals the Aged Care (Amount of Flexible Care Subsidy—Innovative Care Service—Congress Community Development and Education Unit Ltd) Determination 2012 (No. 1), which is redundant as the determination ceased to have effect on 31 December 2012 and Congress Community Development and Education Unit Ltd is no longer an approved provider of innovative care.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Living Longer Living Better aged care reform package was developed in close consultation with the aged care sector, including consumers, industry and professional bodies.
Consultation on the proposed changes to the Act, and to subordinate legislation, commenced in November 2012, with the public release of a paper providing an overview of the proposed legislative changes.
A video presentation detailing the changes was also made available through the Living Longer Living Better website, to assist with public understanding of the proposed changes.
During November and December 2012, the Department of Health and Ageing (the Department) also held briefing sessions in Melbourne, Sydney and Canberra on the proposed changes.
Stakeholders and the general community were able to provide written comments during a four-week period (21 November – 21 December 2012). The comments were made publicly available on the Living Longer Living Better website, unless the author requested otherwise. The Department received 54 submissions from members of the public, peak bodies and approved providers in response to the published overview of legislative amendments. Submissions received via the consultation on the overview of the proposed legislative changes were used to inform drafting of the amending bills and the delegated legislation.
In March and April 2013, the Department held industry briefing sessions across Australia to provide information and to explain, in detail, the proposed legislative changes included in the package of Bills introduced into Parliament on 13 March 2013. The briefing sessions also outlined changes to delegated legislation such as this determination. For those who were unable to attend the briefings a copy of the presentation, supporting handouts, a detailed Questions and Answers document and an information video were made available on the Living Longer Living Better website.
Commencement
This Determination commences on 1 August 2013.
ATTACHMENT
Details of the Aged Care (Flexible Care Subsidy Amount - Innovative Care) Determination 2013 (No. 2)
Section 1 Name of Determination
This section identifies the determination as the Aged Care (Flexible Care Subsidy Amount - Innovative Care) Determination 2013 (No. 2).
Section 2 Commencement
This section states that this determination commences on 1 August 2013.
Section 3 Authority
This section states that this determination is made under the Aged Care Act 1997.
Section 4 Repeal
This section provides that this determination repeals the Aged Care (Amount of Flexible Care Subsidy - Innovative Care) Determination 2013 (No.1) and the Aged Care (Amount of Flexible Care Subsidy - Innovative Care Service - Congress Community Development and Education Unit Ltd) Determination 2012 (No. 1).
Section 5 Definitions
This section provides definitions of terms used in this Determination.
Part 2 – Care recipients receiving innovative care services
Section 6 Amount of flexible care subsidy – approved providers in Schedule 1
This section only applies to approved providers specified in Schedule 1. It provides that the amount of flexible care subsidy payable to an approved provider in respect of a day for an eligible care recipient is the sum of two amounts. The first amount is the amount of basic subsidy specified in Column 2 of the table in Schedule 1 for that approved provider. The second amount is only relevant if the care recipient is an ‘eligible care recipient’. The definition in section 5 provides that a care recipient is an ‘eligible care recipient’ if they would have been eligible for either the dementia and cognition supplement, or the veterans’ supplement, if they were receiving home care. If the resident is an ‘eligible care recipient’, the approved provider will also receive 10% of the basic subsidy amount that would be payable under section 7 of the Aged Care (Home Subsidy Amount) Determination 2013 if the care recipient were a recipient of level 4 home care.
Section 7 Amount of flexible care subsidy – approved providers in Schedule 2
This section only applies to approved providers specified in Schedule 2. It provides that the amount of flexible care subsidy payable to an approved provider in respect of a day for an eligible care recipient is the sum of two amounts. The first amount is the amount of basic subsidy specified in Column 2 of the table in Schedule 2 for that approved provider. The second amount is only relevant if the care recipient is an ‘eligible care recipient’. The definition in section 5 provides that a care recipient is an ‘eligible care recipient’ if they would have been eligible for either the dementia and cognition supplement, or the veterans’ supplement, if they were receiving home care. If the resident is an ‘eligible care recipient’, the approved provider will also receive 10% of the basic subsidy amount that would be payable under section 7 of the Aged Care (Home Subsidy Amount) Determination 2013 if the care recipient were a recipient of level 2 home care.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Flexible Care Subsidy Amount – Innovative Care) Determination 2013 (No. 2)
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 the Legislative Instrument
The purpose of the Aged Care (Flexible Care Subsidy Amount—Innovative Care) Determination 2013 (No. 2) is to specify the amount of flexible care subsidy and supplements payable in respect of innovative care with rates effective from 1 August 2013.
Human Rights Implications
This Legislative Instrument promotes the human right to health contained in article 12 of the International Covenant on Economic Social and Cultural Rights. The legislative instrument engages the right of everyone to the enjoyment of the highest attainable standard of physical and mental health by increasing the amount payable to an approved provider of innovative care if a care recipient is eligible for the dementia and cognitive supplement or the veterans’ supplement. This will assist approved providers to meet the needs of veterans with an accepted mental health condition and people with cognitive impairment who are receiving innovative care.
Conclusion
This Legislative Instrument is compatible with human rights as it promotes the right to health.
Senator the Hon Jacinta Collins
Minister for Mental Health and Ageing