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. 2)
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 rate at $18.54; $12.13 in any other case, and $7.63 for assisted residents, with effect from 20 September 2009 and revokes Determination ACA Ch. 3 No. 3/2009.
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 concessional resident supplement will be disseminated via print and electronic media to approved providers.
Overview
The Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 (No. 2) was enacted to address the need for setting specific rates for the concessional resident supplement under the Aged Care Act 1997. This legislation was introduced by the Minister for Ageing and was established by the Parliament of Australia. Its policy objective is to provide clarity and consistency in the funding of residential aged care services by precisely defining the amount of the concessional resident supplement paid to approved providers for the care of concessional and assisted residents. This determination was made to ensure that the rates of the supplement reflect current economic conditions, based on a well-established formula linked to the consumer price index, and follows extensive consultations with relevant stakeholders, including the aged care industry. The determination aims to maintain a fair and sustainable funding arrangement for residential aged care services in Australia.
Scope and Application
The Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 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 specifically governs the amount of the concessional resident supplement, which is a daily payment made to services for each concessional resident and assisted resident. A concessional resident is someone unable to afford an accommodation bond or charge and meeting the requirements of section 44-7 of the Act, while an assisted resident can only afford a small accommodation bond or charge and meets the requirements of section 44-8. The Determination sets the concessional resident supplement rate at $18.54, $12.13 in other cases, and $7.63 for assisted residents, effective from 20 September 2009. The Act applies across the Commonwealth, ensuring a uniform approach to residential aged care subsidies throughout Australia. The Department of Health and Ageing has conducted extensive consultation on the policy and funding arrangements, and updates regarding the supplement increase will be communicated to approved providers through various media.
Key Provisions
The Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 (No. 2) sets the daily rates for the concessional resident supplement, which is a payment made to approved residential aged care providers for each eligible resident. According to subsection 44-6(4) of the Aged Care Act 1997, the Minister can determine the amount of this supplement through a legislative instrument. The Determination specifies that the concessional resident supplement rate is set at $18.54 for concessional residents and $7.63 for assisted residents, with an alternative rate of $12.13 for all other cases. These rates came into effect on 20 September 2009, superseding the previous Determination ACA Ch. 3 No. 3/2009.
The Aged Care Act 1997 imposes certain obligations on approved providers to ensure they meet the criteria for receiving residential care subsidy payments. These providers must adhere to the requirements outlined in sections 44-7 and 44-8 of the Act to determine the eligibility of residents for concessional and assisted resident status. This involves assessing whether a resident can afford to pay an accommodation bond or charge and verifying that they meet the specific conditions set forth in the Act. Approved providers are also responsible for ensuring they meet any other conditions stipulated under the Act to maintain their eligibility for subsidy payments.
Failure to comply with the provisions of the Aged Care Act 1997 and the Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 (No. 2) can lead to various consequences. While specific offences and penalties are not detailed in the Determination, breaches of the Act may result in civil or criminal penalties. The Act provides for potential fines and other enforcement actions against providers who do not adhere to the stipulated requirements, ensuring the proper administration and distribution of residential care subsidies. The exact nature and severity of penalties would be determined based on the specific breach and the provisions of the Aged Care Act 1997.