EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Residential care subsidy – amount of accommodation supplement) Determination 2008 (No. 3)
The Aged Care Act 1997 (the Act) provides for the funding of aged care services. Persons who are approved under the Act to provide residential aged care services (approved providers) can be eligible to receive residential care subsidy payments in respect of the care they provide to approved care recipients.
Subsection 44-5A(3) of the Act provides that the accommodation supplement for a particular 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 accommodation supplement is payable in respect of supported residents receiving care in eligible services (for example services that are certified and are not providing care to the resident on an extra service basis).
In summary, supported residents are those who are being provided with residential care through a residential care service, who entered care on or after 20 March 2008 and whose assets are below a certain maximum asset threshold or in respect of whom the Secretary has made a financial hardship determination.
This Determination sets out a method for working out the amount of the accommodation supplement.
This Determination revokes the previously made Determination. The key difference between this Determination and the previous Determination is that this Determination allows the correct supplement to be calculated in cases where a person is suffering financial hardship and the Secretary has made a determination that the person not pay an accommodation bond or charge or pay only a maximum amount of accommodation bond or charge. The changes to the Determination are consequential to changes made to the Act through the Aged Care Amendment (2008 Measures No. 2) Act 2008.
The effect of the changes to the Act and to the Determination is that:
- for a supported resident for whom a financial hardship determination has been made under section 57-14(1)(a) or 57A-9(1)(a) that the person must not be charged a bond or charge, the relevant full accommodation supplement will be paid by the Commonwealth (taking into account the approved provider’s compliance with certification requirements and relevant ratios); and
- for a supported resident for whom a financial hardship determination has been made under section 57-14(1)(b) or 57A-9(1)(b) that the person must be charged no more than a specified maximum amount of bond or charge, a lower amount of supplement may be payable based on the maximum amount of bond or charge that the Secretary determined could be paid by the resident.
The changes to the Determination ensure that the correct amount of supplement is payable in respect of these residents.
This Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The policies reflected in the changes to the Act and this Determination were the subject of consultation with the aged care sector through the Ageing Consultative Committee, which comprises peak industry, professional and consumer bodies. Sector feedback was considered in the development and fine tuning of the complex legislative and policy reform process
Overview
The Aged Care (Residential care subsidy – amount of accommodation supplement) Determination 2008 (No. 3) was enacted to amend the method for calculating the accommodation supplement under the Aged Care Act 1997. This legislation was introduced to address the need for more precise calculation of the accommodation supplement for supported residents receiving care in eligible services, particularly in cases where financial hardship determinations have been made by the Secretary. The determination was made under the authority of the Minister for Ageing and is a legislative instrument as defined by the Legislative Instruments Act 2003. The policy objective behind this determination was to ensure that the correct amount of supplement is payable for supported residents experiencing financial hardship, which was achieved through consultation with the aged care sector via the Ageing Consultative Committee. The changes to the determination were a result of adjustments to the Aged Care Act 1997 by the Aged Care Amendment (2008 Measures No. 2) Act 2008, ensuring alignment with the updated legislative framework.
Scope and Application
The Aged Care (Residential care subsidy – amount of accommodation supplement) Determination 2008 (No. 3) applies to approved providers of residential aged care services and the supported residents they care for, as defined under the Aged Care Act 1997. The Act provides for the funding of aged care services and is applicable nationally across Australia, as it is a Commonwealth Act. Approved providers who offer eligible services to supported residents can receive a residential care subsidy, which includes an accommodation supplement for certain residents. The accommodation supplement is payable for supported residents who entered care on or after 20 March 2008, provided their assets are below a specified threshold, or if the Secretary has made a financial hardship determination in their favour. This Determination establishes a method for calculating the accommodation supplement, specifically addressing the correct supplement amount for residents subject to financial hardship determinations, thereby ensuring appropriate subsidy payments are made. The Determination revokes its predecessor, incorporating changes made to the Act by the Aged Care Amendment (2008 Measures No. 2) Act 2008, and is a legislative instrument under the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Aged Care (Residential care subsidy – amount of accommodation supplement) Determination 2008 (No. 3) are found in subsection 44-5A(3) of the Aged Care Act 1997, which specifies that the accommodation supplement amount is determined by the Minister. This Determination outlines the method for calculating the accommodation supplement for supported residents receiving care in eligible services. The key change introduced by this Determination is that it allows for the correct supplement to be calculated in cases where a person is suffering financial hardship and the Secretary has made a determination that the person must not pay an accommodation bond or charge, or must pay only a specified maximum amount of bond or charge (section 1).
This legislation imposes specific obligations on approved providers of residential aged care services, requiring them to adhere to the certification requirements and relevant ratios to be eligible for the accommodation supplement payments (subsection 44-5A(3)). Approved providers must ensure that their services meet the criteria set forth in the Act to receive these subsidies. Furthermore, the Secretary has a responsibility to make financial hardship determinations under sections 57-14(1)(a), 57A-9(1)(a), 57-14(1)(b), or 57A-9(1)(b) of the Act, which directly impact the calculation of the accommodation supplement for supported residents (section 1).
For breaches of the provisions under the Aged Care Act 1997, there are potential civil and criminal consequences. Approved providers failing to comply with certification requirements and relevant ratios may face financial penalties or other sanctions as outlined in the Act. Additionally, any misuse or improper calculation of the accommodation supplement could lead to legal action against the responsible parties. The maximum penalties for breaches are not explicitly stated in the Determination but can be found within the broader framework of the Aged Care Act 1997 and related regulations, where significant fines and potential imprisonment for serious offences may apply (section 1).
The legislative changes introduced by the Aged Care Amendment (2008 Measures No. 2) Act 2008 and reflected in this Determination ensure that the correct amount of accommodation supplement is paid to supported residents, particularly those facing financial hardship. This adjustment is intended to provide a fairer and more equitable distribution of subsidies, taking into account the financial circumstances of the residents. By implementing these changes, the legislation aims to support both the approved providers and the residents more effectively, ensuring that those in need receive the necessary financial assistance (section 1).
In summary, the Aged Care (Residential care subsidy – amount of accommodation supplement) Determination 2008 (No. 3) is a crucial legislative instrument that provides a method for calculating the accommodation supplement for supported residents in eligible services. It imposes specific obligations on approved providers and the Secretary, and outlines potential civil and criminal consequences for non-compliance. The changes ensure that the correct supplement is paid to residents, particularly those facing financial hardship, thereby enhancing the fairness and effectiveness of the aged care funding system.