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. 2)
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 residential care services in respect of 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. 2) ‘the Determination’ is to set the concessional resident supplement rate for concessional and assisted residents with effect from 20 September 2011. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 1).
The difference between the Determinations is that the amount of concessional resident supplement for a day has been indexed, using a well established formula based on the Consumer Price Index as a measure of the movements in the non-labour costs of providers..
Further details on the Determination are attached.
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. As the same basis is used currently for indexation, no further consultation has been 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.
This Determination commences on 20 September 2011.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
ATTACHMENT
Details of the Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 2)
1 Name of Determination
Section 1 provides that the title of the Determination is the Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 2).
2 Commencement
Section 2 states that the Determination commences on 20 September 2011.
3 Revocation of the previous determination
Section 3 revokes the previous determination Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 1).
4 Definitions
Section 4 provides definitions for words and terms used in this Determination.
5 Amount of concessional resident supplement
Section 5 provides the concessional resident supplement amount for a day for care recipients who are concessional or assisted residents, which has been increased using a well established formula based on the Consumer Price Index as a measure of the movements in the non-labour costs of providers
Overview
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 2) was introduced to address the need for an updated amount of the concessional resident supplement for aged care recipients. This Determination was enacted to provide a legislative instrument that sets the rate of the concessional resident supplement for concessional and assisted residents, as allowed under the Aged Care Act 1997. The policy objective of this Determination is to ensure that the supplement rates are indexed appropriately to reflect changes in the non-labour costs of providers, using a formula based on the Consumer Price Index.
The Determination was issued by the Minister for Mental Health and Ageing, and it commenced on 20 September 2011. This legislative instrument revokes the previous Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 1) and sets the new rates for concessional and assisted residents. The Department of Health and Ageing undertook extensive consultation on the policy, including the basis for indexation, prior to the implementation of this Determination. Information about the increase in the supplement amount will be disseminated to approved providers via electronic media.
Scope and Application
The Aged Care Act 1997 governs the regulation and funding of aged care services, applying to approved providers who deliver residential aged care services and the recipients of such care, specifically those who are considered concessional or assisted residents under the Act. This legislation is of Commonwealth reach, operating across Australia and providing for the payment of residential care subsidies to approved providers in respect of their care for eligible residents. The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 2) sets out the amount of the concessional resident supplement, which is a daily payment made to residential care services for each concessional and assisted resident. This Determination, which revokes its predecessor, adjusts the supplement amount using a formula based on the Consumer Price Index to reflect changes in non-labour costs for providers. No exclusions or exemptions are stated within the Determination itself, though the broader Act and its related instruments may contain such provisions. The application of the Act and its subsidiary instruments can be extended or restricted by further legislative instruments.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2011 (No. 2) primarily sets out the updated rates for the concessional resident supplement, a daily amount paid to residential care services for concessional and assisted residents. This Determination, which came into effect on 20 September 2011, revokes the previous Determination 2011 (No. 1) and reflects the updated rates based on the Consumer Price Index (CPI) as stipulated in section 5 (Attachment). These rates are indexed to account for changes in the non-labour costs of providers, ensuring that the payments remain reflective of current economic conditions.
Approved providers of residential aged care services, who are eligible to receive residential care subsidy payments, must adhere to the updated rates specified in the Determination. They must ensure that their billing and documentation practices align with the new supplement rates for concessional and assisted residents, as outlined in section 5 of the Determination. This includes updating their systems and records to reflect the new daily supplement amounts.
Breach of the provisions in the Determination could lead to administrative consequences. While the Determination itself does not specify offences or penalties, non-compliance with the updated rates could result in financial discrepancies or disputes over subsidy payments. Approved providers are expected to maintain accurate records and ensure compliance to avoid potential audits or investigations by relevant authorities. It is important for providers to stay informed about the legislative changes to prevent any financial or legal repercussions.