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 2010 (No. 1)
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 a pre-2008 reform resident and who is considered unable to afford to pay an accommodation bond or an accommodation charge or otherwise meets the requirements of section 44‑7 of the Act. An assisted resident is a person who is a pre-2008 reform resident and who can only afford to pay a small accommodation bond or a small accommodation charge or otherwise meets the requirements of section 44-8 of the Act.
The purpose of the Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2010 (No. 1) (the Determination) is to set the concessional resident supplement rate for concessional and assisted residents with effect from 20 March 2010. This Determination also revokes Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 (No. 2).
The difference between the Determinations is that the amount of concessional resident 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 instruments.
Further consultation was also undertaken as part of the Review of the Conditional Adjustment Payment and is ongoing in relation to 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 Act 1997, enacted by the Commonwealth Parliament, was introduced to address the funding of aged care services in Australia. This Act provides a framework for the provision of residential aged care services, including the eligibility of approved providers to receive residential care subsidy payments for the care they provide to approved care recipients. One of the key aspects of the Act is the provision for a concessional resident supplement, which is a daily amount paid to services for each concessional and assisted resident occupying a place in the service. The Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2010 (No. 1) was made under the authority of the Minister for Ageing to specify the amount of this supplement, reflecting increases in the consumer price index. This Determination replaced the previous 2009 version, thereby ensuring that the rates are adjusted in line with inflationary changes, maintaining the purchasing power of the supplement. The policy objective of this Determination was to index the supplement amount to reflect cost of living changes, ensuring that the financial support provided to aged care recipients keeps pace with broader economic conditions.
Scope and Application
The Aged Care Act 1997, as amended by the Aged Care Amendment (2008 Measures No. 1) Act 2008, governs the funding of aged care services in Australia, with the Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2010 (No. 1) further specifying the rates of the concessional resident supplement. This legislation applies to approved providers who are authorised to deliver residential aged care services and to concessional and assisted residents, who are defined by their financial circumstances and eligibility for certain subsidies. The Act operates at the Commonwealth level and its provisions are extended through legislative instruments such as the Determination, which sets specific rates and adjusts them in accordance with the consumer price index. The Determination revokes the previous Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 (No. 2) and introduces updated rates effective from 20 March 2010. The legislation does not specify any exclusions or thresholds but relies on the criteria of the Act to determine eligibility for the supplement.
Key Provisions
The Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2010 (No. 1) (the Determination) under the Aged Care Act 1997, primarily sets the daily rate for the concessional resident supplement applicable to concessional and assisted residential care recipients, effective from 20 March 2010. This Determination also revokes the previous Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2009 (No. 2). The concessional resident supplement is designed for pre-2008 reform residents who are unable to afford an accommodation bond or charge, while the assisted resident supplement is for those who can only afford a small bond or charge. The supplement amount has been adjusted to reflect increases in the Consumer Price Index (CPI) published by the Australian Statistician.
The Determination imposes obligations on approved providers who receive residential care subsidy payments to ensure that they comply with the new supplement rates as specified. These providers must accurately report the occupancy of concessional and assisted residential care recipients and ensure they are eligible for the supplement as defined in sections 44-6 and 44-7 of the Act. This includes maintaining records and providing accurate information to the Department of Health and Ageing for the purpose of subsidy calculations and payments.
Failure to comply with the provisions of the Determination could result in penalties or other consequences under the Aged Care Act 1997. Although the specific penalties are not detailed in the Explanatory Statement, breaches of the Act generally may incur civil or criminal penalties. For instance, providers found to be in non-compliance might face fines, recovery of wrongly paid subsidies, or in severe cases, legal action or termination of their approval to provide residential aged care services. These potential consequences underscore the importance of adhering to the updated supplement rates as stipulated in the Determination.