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 2012 (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 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 2012 (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 March2012. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 2).
The difference between the Determinations is that the maximum rate of accommodation supplement for a day has been indexed, using a well established formula based on the Consumer Price Index as a measure of the movements in the non-labour costs of providers.
Statement of Compatibility with Human Rights
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 and does not engage any of the applicable rights or freedoms.
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 March 2012.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2012 (No. 1) was enacted to address the need for updating the rates of the accommodation supplement, which is a daily amount paid to residential care services for supported residents under the Aged Care Act 1997. This Determination was introduced by the Minister for Mental Health and Ageing and is a legislative instrument under the Legislative Instruments Act 2003. The primary objective of this instrument is to set a method for calculating the accommodation supplement and establish the maximum rate for services meeting or not meeting specific building requirements, effective from 20 March 2012. It also revokes the previous Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 2). The increase in the accommodation supplement rates was indexed using a formula based on the Consumer Price Index, aligning with previously announced government policy.
Scope and Application
The Aged Care Act 1997 regulates the provision of aged care services in Australia, with a focus on ensuring that approved providers who deliver residential aged care services are eligible to receive residential care subsidy payments for the care they provide to approved care recipients. Specifically, the Act mandates that the accommodation supplement, which is the daily amount paid to residential care services for supported residents, is determined by the Minister through legislative instruments or calculated according to a method set by the Minister. The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2012 (No. 1) establishes a method for calculating the accommodation supplement and sets the maximum rates for services that meet or do not meet specific building requirements, effective from 20 March 2012. This Determination updates the previous 2011 version by indexing the maximum rate of accommodation supplement based on the Consumer Price Index, thereby reflecting changes in non-labour costs of providers. This legislation applies nationally across Australia, and its provisions are implemented through subordinate legislative instruments. The Act does not specify exclusions or exemptions, but rather sets out a framework within which approved providers and care recipients must operate.
Key Provisions
The main operative sections of the Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2012 (No. 1) establish the method for calculating the amount of the accommodation supplement and set the maximum rate of accommodation supplement for services that meet or do not meet building requirements, effective from 20 March 2012 (section 1). This Determination also revokes the previous Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2011 (No. 2) (section 2). The accommodation supplement is the daily amount paid to residential care services for supported residents receiving care in eligible services. The primary objective is to ensure that the accommodation supplement is indexed appropriately, using a formula based on the Consumer Price Index to reflect changes in non-labour costs for providers.
Approved providers of residential aged care services, as well as any care recipients who may be affected by the changes in the accommodation supplement, are governed by this Determination. The Act requires that these providers are approved to receive residential care subsidy payments for the care they provide. The Determination stipulates the method for calculating the accommodation supplement, ensuring that the payments are made accurately and fairly. Additionally, the Secretary’s role in making financial hardship determinations for care recipients is implicitly acknowledged, as these determinations can affect eligibility for the supplement.
Any breach of the provisions set forth in this Determination could result in non-compliance with the requirements for calculating and paying the accommodation supplement. This non-compliance could potentially lead to financial discrepancies or legal challenges from either the providers or care recipients. While the Determination itself does not specify particular offences or penalties, any failure to adhere to the set methods and rates could be subject to review and corrective actions under the Aged Care Act 1997. Penalties for non-compliance with the Act might include fines or other administrative actions as prescribed by the legislation. The maximum penalties for such breaches are not detailed within the Determination but are outlined elsewhere in the Aged Care Act 1997.