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 2009 (No. 1)
(ACA Ch. 3 No. 3/2009)
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 supplement rate for assisted residents, with effect from 20 March 2009.
The Determination revokes the previously made Determination.
This Determination differs from the previously made Determination in that the amount of concessional residential supplement for a day has been increased in accordance with increases in the consumer price index published by the Australian Statistician.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Department of Health and Ageing (the Department) 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 amendments to the Principles and other instruments made under the Act.
Further consultation was undertaken by the Department on aged care funding arrangements as part of the Review of the Conditional Adjustment Payment and there is ongoing consultation with the aged care industry on funding arrangements.
As the indexation of the supplement uses a well established formula based on the consumer price index, and is in accordance with policy upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this instrument.
Information about the increase in the amount of the supplement will be sent to all approved providers by facsimile and will be available to the public on the Department’s website.
Overview
The Aged Care Act 1997 was enacted to address the need for the funding of aged care services in Australia. It was established to provide a framework for the delivery of aged care services, including the payment of subsidies to approved providers for the care they offer to approved care recipients. The Act allows for the payment of a residential care subsidy, which includes a concessional resident supplement for those unable to afford an accommodation bond or charge, and an assisted resident supplement for those who can only afford a small bond or charge. The Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 (No. 1) was made by the Minister for Ageing under the authority of the Act to set the rates of these supplements, effective from 20 March 2009. This Determination was enacted to reflect increases in the consumer price index and supersedes the previously made Determination. The policy objective is to ensure that the supplement rates are indexed in accordance with inflation, as determined by the consumer price index, thereby maintaining the real value of the subsidies provided to aged care services.
Scope and Application
The Aged Care Act 1997 applies to approved providers who deliver residential aged care services and the individuals they serve, known as approved care recipients, with a focus on concessional and assisted residents. This Act is administered at the Commonwealth level, providing a national framework for the funding of aged care services. The legislation allows the Minister for Ageing to determine the amount of the concessional resident supplement through legislative instruments. The supplement is a daily payment made to services for each concessional and assisted resident, with concessional residents being those unable to afford an accommodation bond or charge, and assisted residents those who can only afford a small bond or charge. The Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 sets the rates of these supplements, indexed to the consumer price index published by the Australian Statistician. The determination revokes previous rates and adjusts them based on inflation, with the changes taking effect from 20 March 2009. The legislative instrument is subject to the Legislative Instruments Act 2003, and while the Department of Health and Ageing has undertaken extensive consultations on the policy, specific consultation on this instrument was deemed unnecessary due to the use of a well-established indexation formula. Information about the supplement increases is disseminated to all approved providers and made publicly available on the Department’s website.
Key Provisions
The Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 (No. 1) under the Aged Care Act 1997 establishes the rates for the concessional resident supplement, which is a daily amount paid to services for each concessional and assisted residential care recipient. This Determination, effective from 20 March 2009, revokes any previously made Determination and reflects increases in the consumer price index as published by the Australian Statistician. A concessional resident is an individual unable to afford an accommodation bond or charge and meeting the criteria set out in section 44-7, while an assisted resident can afford only a small bond or charge and meets the requirements of section 44-8 of the Act.
The Determination imposes specific obligations on approved providers of residential aged care services, requiring them to accurately calculate and apply the new concessional resident supplement rates for each eligible resident. This includes ensuring that the correct daily supplement is paid for each concessional and assisted residential care recipient, in accordance with the rates set out in the Determination. Additionally, the Department of Health and Ageing, responsible for administering the Act, must communicate these changes to all relevant parties, including approved providers, ensuring they are aware of and can comply with the new rates.
Breaches of the requirements stipulated in this Determination could lead to significant consequences. Although the specific penalties are not detailed within the Determination itself, the Aged Care Act 1997 provides a framework for enforcement, including potential administrative and financial penalties for non-compliance. Approved providers failing to accurately calculate and apply the correct concessional resident supplement rates may face scrutiny, corrective actions, or financial repercussions, highlighting the importance of adherence to the specified obligations.