Aged Care (Residential Care Subsidy—Amount of Accommodation Supplement) Determination 2013 (No. 1)

Overview

The Aged Care Act 1997, enacted by the Australian Parliament, establishes the framework for the regulation and funding of aged care services. This legislation addresses the need for a structured system to support the provision of residential aged care, ensuring that approved providers can receive subsidy payments for the care they deliver to approved care recipients. The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2013 (No. 1), made under the authority of the Minister for Mental Health and Ageing, specifies the method for calculating the accommodation supplement, which is a daily amount paid to residential care services for supported residents, and sets the maximum rate of this supplement. This Determination, effective from 20 March 2013, aims to index the accommodation supplement, ensuring it aligns with the movements in the non-labour costs of providers, thereby maintaining the standard of care provided to recipients.

Scope and Application

The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2013 (No. 1) applies to approved providers of residential aged care services who are eligible to receive residential care subsidy payments for the care they provide to approved care recipients under the Aged Care Act 1997. This Determination sets the method for calculating the accommodation supplement, which is the daily amount paid to residential care services in respect of supported residents receiving care in eligible services. The accommodation supplement is designed to cover the non-labour costs of providers, ensuring that the standard of care provided to recipients is maintained. The Determination also indexes the maximum rate of accommodation supplement using a formula based on the Consumer Price Index, reflecting the movements in the non-labour costs of providers. This Determination revokes the Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2012 (No. 2) and applies nationally across Australia, in accordance with the Aged Care Act 1997. The Determination does not specify any exclusions or exemptions but operates within the legislative framework of the Aged Care Act 1997, which itself sets out the eligibility criteria for providers and recipients. The Determination is a legislative instrument under the Legislative Instruments Act 2003 and is compatible with human rights as it promotes the human right to health by ensuring adequate funding for residential aged care services.

Key Provisions

The Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2013 (No. 1) sets out a method for calculating the amount of the accommodation supplement and establishes the maximum rate of accommodation supplement for a service that either meets or does not meet building requirements, effective from 20 March 2013 (sections 1-5). This instrument also revokes the previous Aged Care (Residential Care Subsidy – Amount of Accommodation Supplement) Determination 2012 (No. 2). The accommodation supplement is a daily payment made to residential care services for supported residents receiving care in eligible services, and the maximum rate of accommodation supplement has been indexed using a formula based on the Consumer Price Index (sections 1-5). The information about the increase in the amount of the supplement will be disseminated to approved providers via electronic media (section 6). Approved providers who receive residential care subsidy payments must adhere to the guidelines set out in the Determination, including the calculation of the accommodation supplement and the maximum rate of accommodation supplement (sections 1-5). The approved providers must ensure that they are providing residential aged care services to supported residents, who are those entering 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 (section 1). The approved providers must also ensure that they are providing care in eligible services, which are services that are certified and are not providing care to the resident on an extra service basis (section 1). There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination for breach of its provisions. However, failure to comply with the guidelines set out in the Determination may result in the approved providers not receiving residential care subsidy payments or facing other regulatory actions by the Minister for Mental Health and Ageing (section 7). The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003 and 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 (sections 7-8). The Determination promotes the human right to health by ensuring that the amount of the accommodation supplement payable to approved providers of residential aged care services is increased in line with the increase in the non-labour costs of providers, which helps to maintain the standard of care and services provided to recipients of residential aged care services (section 9).