EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No.1)
The Aged Care Act 1997 (the Act) provides for the regulation and 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 2011 (No. 1) (the Determination) is to set the concessional resident supplement rate for concessional and assisted residents with effect from 20 March 2011. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2010 (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 (CPI) as a measure of movements in the non-labour costs of providers.
The 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, 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 electronic media to approved providers.
Overview
The Aged Care Act 1997, enacted by the Australian Parliament, provides a framework for the regulation and funding of aged care services, ensuring that approved providers can receive residential care subsidy payments for the care they offer to approved care recipients. The Act addresses the need for structured and funded residential aged care services for the elderly. The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No.1) was introduced to set the rate of the concessional resident supplement for concessional and assisted residents from 20 March 2011, replacing the previous determination. This legislative instrument was issued by the Minister for Mental Health and Ageing, aiming to adjust the supplement amount in line with increases in the consumer price index, thereby reflecting the changes in non-labour costs of providers. The policy objective behind this determination is to ensure that the supplement payments are adequately indexed, maintaining their relevance and effectiveness in covering the costs associated with providing aged care services.
Scope and Application
The Aged Care Act 1997 governs the regulation and funding of aged care services within Australia, applying to approved providers who offer residential aged care services and to individuals recognised as approved care recipients. This Act delineates the eligibility criteria for receiving residential care subsidy payments, which include the calculation of the concessional resident supplement for both concessional and assisted residents. A concessional resident, under this Act, is someone who was a resident prior to the 2008 reforms and is unable to afford an accommodation bond or charge, or meets specific criteria outlined in section 44-7. An assisted resident, similarly, is a pre-2008 reform resident who can only afford a minimal accommodation bond or charge, or meets the criteria in section 44-8. The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 1) serves to establish the daily rate of the concessional resident supplement, effective from 20 March 2011, and it revokes the 2010 equivalent. This Determination is a legislative instrument under the Legislative Instruments Act 2003 and has been indexed to reflect increases in the consumer price index, which measures changes in the non-labour costs of providers. The Determination applies nationally across Australia, governed by the Commonwealth, and any exclusions or exemptions are not explicitly detailed in the provided text.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 1) sets out the amount of the concessional resident supplement that is paid to services for each concessional and assisted resident. Section 44-6(4) of the Aged Care Act 1997 allows the Minister to determine this amount by legislative instrument. The primary objective of this Determination is to adjust the concessional resident supplement rate, effective from 20 March 2011, in line with changes in the consumer price index (CPI), which measures non-labour cost movements for providers. This Determination also revokes the previous Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2010 (No. 2).
The Act imposes obligations on approved providers to ensure that they meet the criteria for receiving the concessional resident supplement. Approved providers must provide residential aged care services to concessional and assisted residents, who are defined as pre-2008 reform residents unable to afford an accommodation bond or charge, or those who meet the requirements set out in sections 44-7 and 44-8 of the Act. These providers must also comply with the updated supplement rates as determined by the Minister through the legislative instrument. By adhering to these provisions, approved providers ensure they receive the appropriate subsidy payments for the care they provide.
Failure to comply with the provisions of the Act and the Determination may result in various consequences. Although the Determination itself does not explicitly outline specific offences or penalties, breaches of the Aged Care Act 1997 can lead to civil and criminal penalties. For example, under section 165 of the Act, a person who contravenes certain provisions may be subject to a civil penalty of up to $22,200 for individuals and $111,000 for bodies corporate. Additionally, serious breaches may result in criminal penalties, with maximum fines of up to $121,500 for individuals and $607,500 for bodies corporate, as well as potential imprisonment terms. Therefore, it is crucial for approved providers to adhere to the requirements set forth in the Act and the Determination to avoid these potential consequences.