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. 2)
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 the daily amount that is paid to residential care services 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. 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 2011. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (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.
Further details on the Determination are attached.
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. As the change to the rates of the accommodation supplement payable are in line with previously announced Government policy, no further consultation has been undertaken with respect to this instrument.
Information about the increase in the amount of the supplement will be disseminated via electronic media to approved providers.
This Determination commences on 20 September 2011.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
ATTACHMENT
Details of the Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 2)
1 Name of Determination
Section 1 provides that the title of the Determination is the Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 2).
2 Commencement
Section 2 states that the Determination commences on 20 September 2011.
3 Revocation of the previous determination
Section 3 revokes the previous determination Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 1).
4 Definitions
Section 4 provides definitions for words and terms used in this Determination.
5 Method to work out the amount of accommodation supplement
Section 5 provides a method for working out the amount of the accommodation supplement payable for a supported resident and sets the maximum rate of accommodation supplement for a service that either meets or does not meet building requirements, with effect from 20 September 2011. The maximum amounts of accommodation supplement specified for services that either meet or do not meet building requirements are in accordance with previously announced Government policy.
Overview
The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 2) was enacted to address the need for setting a method to calculate and establish the maximum rate of the accommodation supplement for residential care services under the Aged Care Act 1997. This legislation, issued by the authority of the Minister for Mental Health and Ageing, specifies the daily amount paid to residential care services for supported residents, in line with the Australian Government’s policy on increasing these rates. The purpose of this Determination is to provide clarity and consistency in the calculation of the accommodation supplement, ensuring that residential care services receive the appropriate financial support. The determination revokes the earlier Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 1) and aligns with previously announced government policy, enhancing the support provided to residential aged care services.
Scope and Application
The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 2) applies to approved providers of residential aged care services under the Aged Care Act 1997, who are eligible for residential care subsidy payments for the care provided to approved care recipients. These approved providers are entities approved to offer residential aged care services, and the recipients in question are supported residents who entered care on or after 20 March 2008 and meet certain asset criteria or have a financial hardship determination made by the Secretary. The accommodation supplement, a daily payment for supported residents in eligible services, is determined by the Minister through this legislative instrument, as outlined in the Act. The Determination sets the maximum rate of the accommodation supplement for services that meet or do not meet building requirements, effective from 20 September 2011, and it revokes the previous Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 1). The increase in the rates of the accommodation supplement aligns with previously announced Australian Government policy, and no further consultation has been undertaken on this matter.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 2) sets out the method for calculating the accommodation supplement, a daily amount paid to residential care services for supported residents receiving care in eligible services. This Determination, which revokes the previous Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 1), came into effect on 20 September 2011. It outlines the maximum rates of accommodation supplement based on whether the service meets building requirements, in line with Australian Government policy. The key provisions of this Determination (sections 1-5) establish the title, commencement date, revocation of the previous determination, definitions, and the method for calculating the accommodation supplement.
Approved providers who offer residential aged care services and are eligible for residential care subsidy payments must adhere to the provisions of this Determination when calculating the accommodation supplement. The approved providers must ensure that they provide residential care to supported residents, who are individuals entering care on or after 20 March 2008 and have assets below a certain threshold or have received a financial hardship determination from the Secretary. In addition, the services must be certified and not provide care on an extra service basis. By following the prescribed method for working out the amount of accommodation supplement, approved providers can accurately calculate and claim the daily payments they are entitled to.
Breaches of the provisions in the Aged Care Act 1997 or the Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 2) may result in civil or criminal penalties, depending on the nature and severity of the breach. However, the Determination itself does not explicitly outline the specific offences, penalties, or consequences for non-compliance. The penalties for breaches of the Aged Care Act 1997 can include fines of up to $126,000 for individuals and $630,000 for bodies corporate, as well as potential imprisonment terms. It is essential for approved providers to understand and comply with the requirements set out in the Act and the Determination to avoid any legal or financial consequences.