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.
Overview
The Aged Care (Flexible Care Subsidy – Innovative Care Services Provided by Specified Approved Providers) Determination 2008 (F2008L02308) was enacted to address the need for a consistent and equitable subsidy rate for innovative care services provided by specified approved providers. This determination, made under the Aged Care Act 1997, was introduced by the Minister for Health and Ageing, aiming to ensure the continuity of care for recipients of disability ageing in place services. The determination specifically sets the Flexible Care Subsidy rate for services provided by nine approved providers who were allocated places through the Aged Care Innovative Pool in 2003 and 2004. It allows these providers to continue offering care to recipients who were previously involved in the Disability Aged Care pilots, ensuring they can receive additional care while living in state or territory government funded disability supported accommodation. The determination also revokes previous subsidy determinations, streamlining the subsidy process under a single, updated framework.
Scope and Application
The Aged Care (Flexible Care Subsidy – Innovative Care Services Provided by Specified Approved Providers) Determination 2008 applies to the provision of disability ageing in place services provided by nine specified approved providers. These providers were originally allocated places through the Aged Care Innovative Pool in 2003 and 2004 and are listed in Attachment 1 of the Determination. The Flexible Care Subsidy rate established by this Determination aims to support care recipients who were receiving services through the former Aged Care Innovative Pool Disability Aged Care pilots, ensuring they can continue to receive additional care and services as long as they reside in state or territory government funded disability supported accommodation. The Determination revokes previous subsidy determinations, specifically those under section 52-1 (ACA Ch. 3 No. 22/2007) and the New South Wales pilots (ACA Ch. 3 No. 21/2004). The subsidy rates are indexed annually on 1 July, incorporating movements in wage costs and non-wage costs, and are calculated using established formulae without the need for specific consultation with the industry.
Key Provisions
The main operative sections of the Aged Care (Flexible Care Subsidy – Innovative Care Services Provided by Specified Approved Providers) Determination 2008 (the Determination) include paragraphs 52-1(1)(a) and 52-1(2) of the Aged Care Act 1997 (the Act). These sections empower the Minister to determine the amount of the Flexible Care Subsidy, with the current Determination setting this rate specifically for disability ageing in place services provided by nine specified Approved Providers (section 52-1(1)(a)). The Determination also allows the Minister to determine the rates based on any matters deemed necessary and specified in writing (section 52-1(2)). This particular Determination applies to services provided by the nine Approved Providers named in Attachment 1, who were initially allocated places through the Aged Care Innovative Pool in 2003 and 2004. These providers will continue to offer care to recipients who were part of the former Aged Care Innovative Pool Disability Aged Care pilots, ensuring that these individuals can receive additional care and services as long as they remain in state or territory government-funded disability supported accommodation.
The Determination imposes several obligations and requirements on the parties involved. The nine Approved Providers named in Attachment 1 must continue to deliver the specified care services to their existing recipients under the terms of the Determination. Additionally, these providers must comply with the set Flexible Care Subsidy rate, which is designed to cover the costs associated with the delivery of these services. The Determination also mandates that the subsidy rates are indexed annually on 1 July, with adjustments made based on movements in wage costs and non-wage costs. The wage costs component is calculated using the Federal Minimum Wage decision of the Australian Fair Pay Commission, while the non-wage costs index is derived from the Consumer Price Index exclusive of the impact of A New Tax System.
In terms of potential breaches, the Determination does not explicitly outline specific offences or penalties for non-compliance. However, the Aged Care Act 1997, under which this Determination is made, contains various provisions that could apply to non-compliance with the Determination. Offences under the Act can lead to both civil and criminal penalties, depending on the nature and severity of the breach. The maximum penalties can vary significantly, but they generally include fines and, in some cases, imprisonment. The exact penalties would be determined by the courts based on the specific circumstances of the breach. It is important for the Approved Providers to adhere to the requirements of the Determination to avoid any potential legal consequences.