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. 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 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. 2) (the Determination) is to set the concessional resident supplement rate for concessional and assisted residents with effect from 20 September 2010. This Determination also revokes Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2010 (No. 1).
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 (CPI) as a measure of movements in the non-labour costs of providers.
Consultation
The Department of Health and Ageing 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 undertaken as part of the Review of the Conditional Adjustment Payment and is ongoing in relation to funding arrangements.
Indexation of the supplement uses a well established formula based on the CPI as a measure of the movements in the non-labour costs of providers. As this 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 disseminated via print and electronic media to approved providers.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2010 (No. 2) was enacted by the Australian government under the Aged Care Act 1997. This legislation was introduced to address the need for regular updates to the concessional resident supplement rates, ensuring they reflect the changes in non-labour costs experienced by residential aged care service providers. The Aged Care Act 1997 provides the legal framework for the funding of aged care services, and the Determination serves to implement the policy objective of adjusting these rates in accordance with the Consumer Price Index (CPI). The Department of Health and Ageing conducted extensive consultations on this policy, which aligns with broader initiatives such as the Aged Care Amendment (2008 Measures No. 1) Act 2008 and ongoing reviews of funding arrangements. This legislative instrument aims to ensure that the financial support provided to concessional and assisted residents remains adequate and reflective of current economic conditions.
Scope and Application
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2010 (No. 2) applies to approved providers who deliver residential aged care services under the Aged Care Act 1997. These providers are eligible to receive residential care subsidy payments for the care they provide to approved care recipients, including concessional and assisted residents. The Determination sets the daily concessional resident supplement rate, which is a payment made for each concessional and assisted resident in residential care. Concessional residents are those unable to afford an accommodation bond or charge, while assisted residents can only afford a small bond or charge, both being pre-2008 reform residents. The supplement rate is indexed in accordance with the consumer price index to reflect movements in non-labour costs of providers. The Determination revokes its predecessor, the Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2010 (No. 1), and extends to the Commonwealth jurisdiction, impacting all approved providers operating within Australia. No specific exclusions or thresholds are mentioned in the Determination, but it is part of a broader policy framework that has undergone extensive consultation and review.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2010 (No. 2) (the Determination) sets out the daily rate for the concessional resident supplement that is paid to approved providers for each concessional and assisted resident under the Aged Care Act 1997. This rate is indexed according to movements in the consumer price index (CPI), which measures changes in the non-labour costs of providers. This Determination replaces the earlier Aged Care (Residential care subsidy – amount of concessional resident supplement) Determination 2010 (No. 1), which was revoked by this new Determination. The Determination came into effect on 20 September 2010.
Approved providers of residential aged care services who have concessional or assisted residents are directly impacted by this Determination. They are required to apply the updated rates of the concessional resident supplement for each day they provide care to such residents, beginning from the effective date of 20 September 2010. The Determination ensures that the supplement amount reflects current cost pressures faced by providers, thereby supporting the financial sustainability of residential aged care services.
The Determination does not explicitly state any offences or penalties for non-compliance with the updated supplement rates. However, failure to comply with the terms of the Aged Care Act 1997 or the Determination could potentially lead to legal consequences, such as fines or other penalties, as stipulated under the relevant sections of the Act. The Act itself includes provisions for the enforcement of compliance and the imposition of penalties for non-compliance with its requirements.
The Determination is a legislative instrument made under the authority of the Minister for Ageing and is subject to the provisions of the Legislative Instruments Act 2003. Information about the Determination and the updated rates will be communicated to approved providers through various channels, including print and electronic media, to ensure that they are aware of and can comply with the new requirements.