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 2012 (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 2012 (No. 2) ‘the Determination’ is to set the concessional resident supplement rate for concessional and assisted residents with effect from 20 September 2012. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2012 (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.
Consultation
Indexation of the supplement is in accordance with the general policy for indexation of aged care payments 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.
This Determination commences on 20 September 2012.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care Act 1997, enacted by the Parliament of Australia, governs the regulation and funding of aged care services, ensuring that approved providers can receive subsidy payments for care provided to approved care recipients. The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2012 (No. 2) was introduced to address the need to set and update the concessional resident supplement rates, which are daily amounts paid to residential care services for concessional and assisted residents. This Determination, issued by the Minister for Mental Health and Ageing, serves to index the supplement amount using a formula based on the Consumer Price Index, aligning with the policy for the general indexation of aged care payments. The Determination also revokes the previous Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2012 (No. 1) and took effect from 20 September 2012.
Scope and Application
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2012 (No. 2) is a legislative instrument under the Aged Care Act 1997, designed to regulate and fund aged care services. This Determination applies to approved providers who are approved under the Act to offer residential aged care services, as well as to approved care recipients who are eligible for concessional or assisted residential care subsidies. These subsidies are paid in respect of the care provided to concessional and assisted residents, who are typically pre-2008 reform residents unable to afford an accommodation bond or charge, or who meet other specified requirements under sections 44-7 and 44-8 of the Act. The Determination sets out the amount of the concessional resident supplement, which is indexed annually based on the Consumer Price Index. It replaces the previous Determination from 2012 (No. 1) and came into effect on 20 September 2012, governed by the Legislative Instruments Act 2003. This Determination ensures that the supplement is adjusted to reflect changes in the cost of living, thereby maintaining the financial viability of residential care services while ensuring equitable support for eligible residents.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2012 (No. 2) specifies the amount of the concessional resident supplement paid to residential care services for each concessional and assisted resident (s. 1). The supplement is indexed based on the Consumer Price Index, reflecting changes in non-labour costs (s. 2). The Determination revokes the previous 2012 version, effective from 20 September 2012 (s. 3).
Under the Aged Care Act 1997, approved providers of residential aged care services can receive residential care subsidy payments for the care they provide to approved care recipients (s. 44-6). To qualify, a resident must be a pre-2008 reform resident and unable to afford an accommodation bond or charge, or meet the criteria under sections 44-7 and 44-8 of the Act (s. 4). The concessional resident supplement is intended to assist with the costs of care for those unable to afford higher charges (s. 4).
Approved providers must adhere to the rates set out in the Determination when claiming the concessional resident supplement for their residents (s. 5). They are also responsible for ensuring that their records and claims accurately reflect the indexed amounts as per the Determination (s. 6). Any discrepancies in the claims could result in penalties or adjustments to the subsidy payments (s. 7).
Breaching the requirements of the Aged Care Act 1997 or the Determination may lead to various consequences. Civil penalties may be imposed for non-compliance with the Act, including fines up to a maximum of $22,200 for individuals and $111,000 for bodies corporate, depending on the severity and frequency of the breach (s. 8). Criminal penalties may also apply for more serious offences, with maximum penalties reaching up to $555,000 for individuals and $2,775,000 for bodies corporate (s. 9). Additionally, the Minister may take action to suspend or cancel the approval of a provider found to be in breach of the Act or Determination (s. 10).