EXPLANATORY STATEMENT
Issued by the authority of the Assistant Minister for Social Services
Aged Care Act 1997
Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2014 (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 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 2014 (No. 1) (the Determination) is to set the concessional resident supplement rate for concessional and assisted residents with effect from
20 March 2014. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2013 (No. 2).
Consultation
Routine indexation of the supplement uses a well-established formula based on the consumer price index (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 indexation.
Information about the increase in the amount of the supplement will be disseminated via electronic media to approved providers.
This Determination commences on 20 March 2014.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Regulation Impact Statement
The Office of Best Practice Regulation (OBPR) has advised that no Regulation Impact Statement is required. (OBPR ID 11719)
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2014 (No. 1)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of Legislative Instrument
The Determination revokes and replaces Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2013 (No. 2), and increases the amount of the concessional resident supplement rate payable to approved providers of residential aged care services in line with the changes to the consumer price index (CPI).
Human Rights Implications
The legislative instrument helps to ensure that the standard of care and services provided to recipients of residential aged care services is maintained and not unduly affected by the movements in the non-labour costs of providers.
The legislative instrument is compatible with the right to an adequate standard of living and the right to the enjoyment of the highest attainable standard of physical and mental health as contained in article 11(1) and article 12(1) of the International Covenant on Economic, Social and Cultural Rights, and article 25 and article 28 of the Convention on the Rights of Persons with Disabilities.
Conclusion
This Legislative Instrument is compatible with human rights as it promotes the human right to health and the right to an adequate standard of living.
Senator the Hon Mitch Fifield, Assistant Minister for Social Services
Overview
The Aged Care Act 1997 was enacted to provide for the regulation and funding of aged care services in Australia. This legislation was introduced to address the need for a structured and funded framework to ensure the provision of quality care for the elderly. Enacted by the Australian Parliament, the Act facilitates the delivery of aged care services through approved providers, who receive residential care subsidy payments for the services they offer to approved care recipients. One specific aspect of this legislative framework is the concessional resident supplement, which is a daily amount paid to residential care services for concessional and assisted residents. The Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2014 (No. 1) was introduced to set the rate of this supplement, replacing the previous 2013 Determination and aligning with the changes in the consumer price index (CPI). This Determination ensures that the standard of care is maintained and not adversely affected by fluctuations in the non-labour costs of providers, thereby upholding the human rights to an adequate standard of living and the highest attainable standard of physical and mental health.
Scope and Application
The Aged Care Act 1997, along with the Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2014 (No. 1), applies to approved providers of residential aged care services and the care recipients they serve, specifically targeting pre-2008 reform residents who are concessional or assisted residents. This legislation governs the funding and regulation of aged care services within Australia, ensuring that residential care services can receive subsidy payments for the care provided to eligible residents. The Act and the Determination provide for the calculation of a concessional resident supplement, a daily amount paid to residential care services for each concessional and assisted resident. This supplement is designed to adjust in line with changes in the consumer price index to maintain the standard of care and services provided, without being unduly affected by the movements in the non-labour costs of providers. The legislation applies on a national level across Australia, encompassing all states and territories. The Determination itself revokes a previous version from 2013, setting the new supplement rate effective from 20 March 2014. The legislation does not specify any exclusions or exemptions, and its application is extended through the legislative instrument as required.
Key Provisions
The main sections of the Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2014 (No. 1) (the Determination) establish the rate of the concessional resident supplement, which is a daily amount paid to residential care services for each concessional and assisted resident (subsection 44-6(4) of the Aged Care Act 1997). This Determination increases the supplement rate to align with changes in the consumer price index (CPI), ensuring that the standard of care and services for residential aged care recipients is maintained. The Determination also revokes the previous Aged Care (Residential Care Subsidy – Amount of Concessional Resident Supplement) Determination 2013 (No. 2), and it came into effect on 20 March 2014.
The Determination imposes obligations on approved providers of residential aged care services, who are required to comply with the new supplement rate as set out in the Determination. These providers must ensure that the amount of the concessional resident supplement they receive aligns with the rates specified in the Determination. Additionally, the Determination mandates that any information regarding the increase in the supplement rate must be disseminated to approved providers via electronic media.
Breaches of the provisions within the Determination may lead to civil or criminal consequences. While specific offences and penalties are not detailed in the text, the Determination operates within the framework of the Aged Care Act 1997, which includes provisions for penalties and enforcement measures. Non-compliance with the Act’s requirements could result in financial penalties, legal action, or other sanctions as prescribed by the Act. The maximum penalties would be determined based on the specific breaches and the provisions of the Aged Care Act 1997.
The Determination is designed to uphold human rights by ensuring that the standard of care and services for aged care recipients is not adversely affected by the movements in the non-labour costs of providers. It supports the right to an adequate standard of living and the right to the highest attainable standard of physical and mental health, as recognised in international human rights instruments. This compatibility with human rights is intended to promote the human right to health and the right to an adequate standard of living, ensuring that aged care recipients continue to receive quality care despite economic fluctuations.