EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 1)
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 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 2011 (No. 1) (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 March 2011. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2010 (No. 2).
The difference between the Determinations is that the maximum rate of accommodation supplement has been increased in accordance with previously announced Australian Government policy.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
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 electronic media to approved providers.
Overview
The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 1) was enacted to provide clarity and establish the method for calculating the accommodation supplement under the Aged Care Act 1997. This legislation was introduced to address the need for a defined process in determining the rates of accommodation supplements for supported residents receiving care in eligible residential services. The Aged Care Act 1997 itself provides the framework for regulating and funding aged care services, including the eligibility of approved providers for residential care subsidy payments. The policy objective behind this determination is to ensure consistent and transparent application of the accommodation supplement, which is critical for the financial viability of approved providers and the quality of care provided to residents.
The determination sets the maximum rate of accommodation supplement for services that either meet or do not meet building requirements, effective from 20 March 2011, and revokes the previous determination from 2010. The increase in the maximum rate reflects previously announced Australian Government policy. The Department of Health and Ageing undertook comprehensive consultation on this policy, which was further informed by the Review of the Conditional Adjustment Payment. This determination is a legislative instrument under the Legislative Instruments Act 2003, ensuring its legal standing and implementation within the regulatory framework.
Scope and Application
The Aged Care Act 1997 applies to approved providers who offer residential aged care services, and the residents who receive care through these services, ensuring that they meet the legislative requirements for funding and regulation. The Act specifically addresses the provision of residential care subsidies, including the accommodation supplement, to eligible recipients who have entered care after 20 March 2008 and meet certain asset thresholds or have been subject to a financial hardship determination by the Secretary. The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 1) sets out the method for calculating the accommodation supplement and determines the maximum rate applicable to services that do or do not meet building requirements, effective from 20 March 2011. This Determination replaces the previous Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2010 (No. 2), reflecting an increase in the rates of supplements in line with Australian Government policy. The Determination operates as a legislative instrument under the Legislative Instruments Act 2003, and its implementation is supported by ongoing consultation processes undertaken by the Department of Health and Ageing.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 1) (sections 1 to 4) establishes a method for calculating the accommodation supplement payable to eligible services for the care they provide to supported residents. Under section 44-5A(3) of the Aged Care Act 1997, the Minister determines the amount of the accommodation supplement by legislative instrument. This Determination sets out the maximum rates of accommodation supplement for services that meet or do not meet building requirements, effective from 20 March 2011, and revokes the 2010 Determination to reflect policy changes. The accommodation supplement is payable in respect of supported residents, defined as those receiving care through a residential care service who entered care on or after 20 March 2008 and meet specific asset or financial hardship criteria.
The Determination imposes obligations on approved providers, requiring them to ensure that the accommodation supplement is correctly calculated and claimed in accordance with the stipulated method. It also places a duty on the Department of Health and Ageing to communicate the details of the supplement amount to approved providers through electronic media. These obligations are integral to the effective administration of the subsidy scheme and ensure that funds are allocated and managed according to legislative requirements.
Breaches of the provisions in this Determination may lead to civil or criminal consequences, although the specific penalties are not detailed within the Determination itself. Under the Aged Care Act 1997, non-compliance with the provisions governing subsidy payments can result in civil penalties, including fines. In cases where the breach constitutes a criminal offence, the penalties can include imprisonment or substantial fines, depending on the severity of the breach. The Act provides for various enforcement mechanisms to address non-compliance and ensure adherence to the legislative framework.