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 2010 (No. 2)
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.
The purpose of the Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2010 (No. 2) (the Determination) is to set out a method for working out the amount of the accommodation supplement and set the maximum rate of accommodation supplement for a service that either meets or does not meet building requirements, with effect from 20 September 2010. This Determination also revokes Aged Care (Residential care subsidy – amount of accommodation supplement) Determination 2010 (No. 1).
The difference between the Determinations is that the maximum rate of accommodation supplement has been increased in accordance with previously announced Australian Government policy.
Consultation
The Department of Health and Ageing undertook extensive consultation on the policy, which included policy on increases in the rates of supplements, that was implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 and related instruments.
Further consultation was also undertaken as part of the Review of the Conditional Adjustment Payment and is ongoing in relation to funding arrangements.
Information about the increase in the amount of the supplement will be disseminated via print and electronic media to approved providers.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care Act 1997, enacted by the Australian Parliament, was introduced to address the need for funding and regulation of aged care services. This Act provides the legislative framework for the provision of residential care services to the elderly and the allocation of subsidies to approved providers. The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2010 (No. 2) is an instrument made under the authority of the Minister for Ageing to further refine the implementation of the Act by setting out the method for calculating the accommodation supplement for supported residents in residential care services. The policy objective behind this Determination is to ensure that the accommodation supplement is adjusted to reflect current economic conditions and to maintain the financial viability of residential care services, while also providing necessary support to care recipients. This legislative instrument revokes its predecessor and introduces an increased maximum rate of accommodation supplement in line with government policy, aiming to enhance the quality of care provided to the elderly.
Scope and Application
The Aged Care Act 1997 applies to approved providers who are authorised to deliver residential aged care services and can receive residential care subsidy payments for the care they provide to approved care recipients. These recipients must meet specific criteria, such as entering care on or after 20 March 2008 and having assets below a certain threshold or having a financial hardship determination made by the Secretary. The Act operates across the Commonwealth and regulates the provision of residential aged care services in Australia. The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2010 (No. 2) sets out the method for determining the accommodation supplement amount and the maximum rate, which applies to services that meet or do not meet building requirements, effective from 20 September 2010. This Determination revokes the previous Aged Care (Residential care subsidy – amount of accommodation supplement) Determination 2010 (No. 1), reflecting changes in Australian Government policy. The Determination is a legislative instrument under the Legislative Instruments Act 2003 and follows extensive consultation by the Department of Health and Ageing.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2010 (No. 2) sets forth the method for calculating the accommodation supplement under the Aged Care Act 1997 and establishes the maximum rate of this supplement for services that either meet or do not meet building requirements, effective from 20 September 2010. This Determination revises the previous Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2010 (No. 1), primarily by increasing the maximum rate of the accommodation supplement as per previously announced Australian Government policy. Section 44-5A(3) of the Act allows the Minister to determine the accommodation supplement either directly by legislative instrument or by setting a method through legislative instrument. The accommodation supplement is applicable to supported residents receiving care in eligible services, defined as those who entered care on or after 20 March 2008, whose assets fall below a specific maximum asset threshold, or for whom a financial hardship determination has been made by the Secretary.
The obligations under this Determination require approved providers to calculate the accommodation supplement in accordance with the specified method and to ensure that the supplement is correctly applied to eligible residents. The Department of Health and Ageing is responsible for disseminating information about the increase in the supplement amount to approved providers through print and electronic media. The Determination mandates that any changes to the supplement amount must be in line with the policy and legislative framework established by the Aged Care Act 1997 and related instruments. Furthermore, the Determination ensures that the accommodation supplement is fairly distributed among eligible residents, reflecting the policy intent to support residential aged care services.
Breach of the provisions set out in the Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2010 (No. 2) may lead to civil or criminal consequences, depending on the nature and severity of the breach. While the Determination does not explicitly outline specific penalties, breaches of the Aged Care Act 1997 or related instruments could result in penalties as prescribed by the legislation. These penalties can include fines and, in more severe cases, criminal charges. The Act itself provides for various enforcement mechanisms, and any actions taken against an approved provider for non-compliance would be in accordance with the provisions of the Act and any related regulations. The Determination underscores the importance of adhering to the prescribed methods and obligations to ensure the effective and lawful operation of the residential care subsidy scheme.