EXPLANATORY STATEMENT
Aged Care Act 1997 Section 52-1
AGED CARE (FLEXIBLE CARE SUBSIDY – INNOVATIVE CARE SERVICES PROVIDED BY SPECIFIED APPROVED PROVIDERS) DETERMINATION 2008
(ACA Ch. 3 No. 12/2008)
FLEXIBLE CARE SUBSIDY
Paragraph 52-1(1)(a) of the Aged Care Act 1997 (the Act) provides that the Minister may determine in writing the amount of the Flexible Care Subsidy. 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 in writing.
This Determination sets the Flexible Care Subsidy rate for the provision of disability ageing in place services that are provided by the nine (9) Approved Providers named in Attachment 1 to the Determination, who originally received allocations of places through the Aged Care Innovative Pool in 2003 and 2004.
The nine (9) Approved Providers will continue to provide care to those recipients who were receiving services through the former Aged Care Innovative Pool Disability Aged Care pilots. The subsidy will enable those care recipients to continue receiving the additional care and services for as long as they are living in state or territory government funded disability supported accommodation.
This Determination revokes the Determination of the amount of flexible care subsidy under section 52-1 (ACA Ch. 3 No. 22/2007) and the Determination of the amount of flexible care subsidy under section 52-1 for the UnitingCare Cumberland Prospect Disability Aged Care Innovative Pool pilot and the Northern Sydney Disability Aged Care pilot in New South Wales (ACA Ch. 3 No. 21/2004).
Consultation
Many aged care subsidy rates are indexed on 1 July each year. The index incorporates movements in wage costs and non-wage costs. The wage costs component is calculated using the annualised dollar figure of the October 2006 Federal Minimum Wage decision of the Australian Fair Pay Commission expressed as a proportion of the (latest available) Average Weekly Ordinary Time Earnings at the time of the AFPC decision. The non-wage costs index is based on the Consumer Price Index exclusive of the impact of A New Tax System consistent with a whole of government decision.
As the indexation of this subsidy uses a well-established formula for indexation, no specific consultation with industry was undertaken with respect to this instrument.