EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Residential cares subsidy – amount of concessional resident supplement) Determination 2008
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 44-6(4) of the Act provides that the Minister may determine, by legislative instrument, the amount of the concessional resident supplement.
The concessional resident supplement is a daily amount that is paid to services for each concessional resident and assisted resident occupying a place in the service.
A concessional resident is a person who is considered unable to afford to pay an accommodation bond or an accommodation charge and meets the requirements of section 44‑7 of the Act. An assisted resident is a person who can only afford to pay a small accommodation bond or a small accommodation charge and meets the requirements of section 44-8 of the Act.
This determination sets the concessional resident supplement rates, including the concessional resident rate for assisted residents, with effect from 20 March 2008. This determination provides that the amount of concessional resident supplement for a particular day is:
- for a care recipient who is a concessional resident, either:
$ 17.73 - if, on the day, more than 40% of the new residents to whom the relevant residential care service provides residential care (other than respite care) are supported residents, concessional residents or assisted residents; or
$11.60 - in any other case; and
- for a care recipient who is an assisted resident - $7.30.
The determination defines ‘relevant residential care service’ to mean the residential care service that provides residential care (other than respite care) to the care recipient on a particular day.
The term ‘new resident’ is also defined. This has the same meaning as in section 21.13 of the Residential Care Subsidy Principles 1997. A new resident is a care recipient who is not receiving care on an extra service basis and enters a residential care service after:
- 30 September 1997 - if the service was certified on 1 October 1997; or
- the date the service is certified - if the service is certified after 1 October 1997.
The concessional resident supplement will be indexed on 20 March and 20 September each year. This represents a change from current indexation arrangements whereby indexation has occurred on 1 July each year. The change is in line with the indexation arrangements for the new accommodation supplement.
This 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 that is implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 which amends the Aged Care Act 1997. This Determination results from these amendments.