EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2008 (No. 2)
(ACA Ch. 3 No. 24/2008)
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.
The Aged Care (Residential care subsidy – amount of concessional residential supplement) Determination 2008 (No. 2) (the Determination) sets the concessional resident supplement rates, including the concessional resident supplement rate for assisted residents, with effect from 20 September 2008. The Determination provides that the amount of concessional resident supplement for a particular day is:
- for a care recipient who is a concessional resident, either:
$ 18.23 - 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
$11.92 - in any other case; and
- for a care recipient who is an assisted resident - $7.50.
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 21.11B 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 in line with the indexation arrangements for the accommodation supplement determined by the Minister under section 44-5A of the Act.
The Determination revokes and replaces the Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2008 (the previous Determination).
The Determination differs from the previous Determination in that the amount of concessional residential supplement for a day is increased.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
As the indexation of this supplement uses a well established formula, no specific consultation with industry was undertaken with respect to this instrument.
Overview
The Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2008 (No. 2) is a legislative instrument made under the Aged Care Act 1997. This determination was introduced to address the need for setting the amount of concessional resident supplement for residential aged care services, providing clarity and consistency in the funding of these services. Enacted by the Minister for Ageing, the policy objective of this determination is to ensure that approved providers of residential aged care services receive appropriate financial support for the care they provide to concessional and assisted residents. The policy is designed to maintain the viability of aged care services while ensuring that the needs of the elderly who require residential care are met.
The Determination sets specific rates for the concessional resident supplement, which varies depending on the proportion of new residents who are concessional, supported, or assisted residents within the service. This legislative instrument replaces the previous determination, reflecting updated rates and maintaining the alignment with the indexation arrangements for the accommodation supplement. This approach ensures that the supplement is adjusted in line with changes in the cost of living, thus supporting the sustainability of residential aged care services.
Scope and Application
The Aged Care Act 1997 and the Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2008 (No. 2) together govern the funding of aged care services in Australia, focusing specifically on the provision of residential care subsidies to approved providers for care recipients. These recipients are classified as concessional or assisted residents, determined by their ability to afford accommodation bonds or charges. The Act applies to approved providers of residential aged care services and to individuals who qualify as concessional or assisted residents under its terms. The geographic reach of the Act is national, applying across the Commonwealth of Australia. The Determination, as a legislative instrument, specifies the rates of the concessional resident supplement and provides for its annual indexation, ensuring that these rates are adjusted in line with broader economic indices. The Determination replaces and revokes its predecessor, with updated rates reflecting policy changes and adjustments. Any exclusions, exemptions, or thresholds are implicitly defined within the Act and the Determination, focusing on the eligibility criteria for recipients and the conditions under which providers qualify for the subsidy.
Key Provisions
The Aged Care (Residential care subsidy – amount of concessional residential supplement) Determination 2008 (No. 2) establishes the rates for the concessional resident supplement, which is a daily amount paid to services for each concessional and assisted resident occupying a place in the service. The rates are determined based on the percentage of new residents who are supported, concessional, or assisted residents. For concessional residents, the supplement is $18.23 if more than 40% of new residents fall into these categories, and $11.92 otherwise. For assisted residents, the supplement is set at $7.50 per day. These rates are effective from 20 September 2008 and are indexed annually on 20 March and 20 September, in line with the indexation arrangements for the accommodation supplement.
The Determination outlines obligations for approved providers who are eligible to receive residential care subsidy payments. They must ensure that the care they provide to approved care recipients meets the criteria for concessional and assisted residents. They must also accurately calculate the concessional resident supplement based on the percentage of new residents who are supported, concessional, or assisted. Approved providers must adhere to the definitions provided for 'relevant residential care service' and 'new resident' as outlined in the Determination and the Residential Care Subsidy Principles 1997.
Non-compliance with the provisions of this Determination may not explicitly result in civil or criminal penalties in the text provided. However, failure to accurately calculate and claim the concessional resident supplement could potentially lead to financial discrepancies and audits by the relevant authorities. It is important for approved providers to maintain accurate records and calculations to avoid any potential issues that might arise from non-compliance. While the Determination itself does not specify penalties, the overarching Aged Care Act 1997 and associated regulations may include provisions for penalties in cases of non-compliance.