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.
Overview
The Aged Care (Residential cares subsidy – amount of concessional resident supplement) Determination 2008 was introduced under the Aged Care Act 1997, which governs the funding of aged care services in Australia. This determination was enacted to address the need for a legislative instrument to set the amount of the concessional resident supplement, a daily payment made to services for each concessional and assisted residential care recipient. The Minister for Ageing, through the Department of Health and Ageing, undertook extensive consultation to develop this policy, resulting in the Aged Care Amendment (2008 Measures No. 1) Act 2008. This determination specifies the rates for the concessional resident supplement, applicable from 20 March 2008, and changes the indexation date from 1 July to 20 March and 20 September each year to align with other indexation arrangements. This determination is a legislative instrument under the Legislative Instruments Act 2003.
Scope and Application
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2008 applies to approved providers of residential aged care services, as defined by the Aged Care Act 1997. This Act governs the funding of aged care services in Australia and involves the provision of residential care subsidy payments to these approved providers for the care they give to approved care recipients. Specifically, the determination sets out the rates for the concessional resident supplement, which is a daily amount paid to services for each concessional resident and assisted resident occupying a place in the service. The rates are contingent on whether more than 40% of the new residents to whom the service provides residential care (excluding respite care) are supported, concessional, or assisted residents. The jurisdictional reach of this Act is national, as it is governed by Commonwealth legislation. The determination does not explicitly mention any exclusions or thresholds, but it is contingent upon the conditions specified within the Aged Care Act 1997. The application of this Act can be extended or restricted through subordinate instruments as per the legislative framework.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2008 specifies the rates of the concessional resident supplement under the Aged Care Act 1997 (the Act). The rates are set based on whether a care recipient is a concessional resident or an assisted resident and the proportion of new residents in the residential care service (sections 1, 2). For a concessional resident, the supplement is either $17.73 or $11.60, depending on the percentage of new residents supported by the service (section 1(1)). For an assisted resident, the supplement is $7.30 (section 1(2)). A 'new resident' is defined as someone who enters a service after certain dates, depending on when the service was certified (section 1(3)).
The Act imposes specific obligations on approved providers of residential aged care services who are eligible to receive these subsidies (section 44-6(4)). They must ensure that the care they provide meets the criteria for concessional and assisted residents, as outlined in sections 44-7 and 44-8 of the Act, respectively. The approved providers must also comply with the definitions of 'relevant residential care service' and 'new resident' as provided in the determination and the Residential Care Subsidy Principles 1997 (section 1(3)).
The determination also outlines the indexation of the concessional resident supplement, which will now occur on 20 March and 20 September each year, aligning with the new accommodation supplement indexation (section 1(4)). This change from the previous indexation date of 1 July each year is a key amendment brought about by the Aged Care Amendment (2008 Measures No. 1) Act 2008.
Failure to comply with the provisions of the Aged Care Act 1997 and this determination could result in civil or criminal penalties, although specific offences, penalties, or consequences are not detailed in this determination. However, the consequences of non-compliance may include legal action, fines, or other penalties as prescribed by the Act. The maximum penalties for breaches of the Act are not specified in this determination but would need to be referred to in the relevant sections of the Aged Care Act 1997.