Aged Care (Residential care subsidy - amount of pensioner supplement) Determination 2009 (No. 2)

Administered by Department of Health, Disability and Ageing

Legislation au F2009L03560 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Ageing

 

Aged Care Act 1997

 

Aged Care (Residential care subsidy – amount of pensioner supplement)

Determination 2009 (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.

 

All care recipients who meet the requirements of subsection 44-28(2) of the Act and who are not excluded under subsections 44-28(3), (5) or (6) of the Act are eligible for a pensioner supplement.  This includes pre-2008 reform residents who receive an income support payment (but who have not agreed to pay a large accommodation bond), or have a dependent child.  Residents are also not eligible for a pensioner supplement while they fail to, or elect not to, provide information for the purpose of determining their total assessable income.

 

Subsection 44-28(7) of the Act provides that the Minister may determine, by legislative instrument, the amount of the pensioner supplement.  This Determination sets the amount of the pensioner supplement a day at $6.95 with effect from 20 September 2009 and revokes Determination ACA Ch. 3 No. 7/2009.

 

Consultation

The Department of Health and Ageing (the Department) 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 amendments to the Principles and other instruments made under the Act.

 

Further consultation was undertaken by the Department on aged care funding arrangements as part of the Review of the Conditional Adjustment Payment and there is ongoing consultation with the aged care industry on funding arrangements.

 

As the indexation of the supplement uses a well established formula based on the consumer price index, and 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 pensioner supplement will be disseminated via print and electronic media to approved providers.

 

Overview

The Aged Care (Residential care subsidy – amount of pensioner supplement) Determination 2009 (No.2) was enacted to specify the amount of the pensioner supplement under the Aged Care Act 1997. This legislation was introduced to address the need for a clear, updated determination of the supplement amount, following the policy changes implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008. The Act provides for the funding of aged care services, and ensures that approved providers can receive residential care subsidy payments. The policy objective, as stated, is to ensure that the supplement amount is set in accordance with a well-established formula based on the consumer price index, following extensive consultation with the aged care industry and relevant stakeholders. This Determination sets the amount of the pensioner supplement at $6.95 per day, effective from 20 September 2009, and revokes the previous Determination ACA Ch. 3 No. 7/2009.

Scope and Application

The Aged Care (Residential care subsidy – amount of pensioner supplement) Determination 2009 applies to approved providers of residential aged care services under the Aged Care Act 1997 and care recipients who qualify for a pensioner supplement. This instrument sets out the specific amount of the pensioner supplement at $6.95 per day, effective from 20 September 2009. Eligibility for the supplement is determined by subsections 44-28(2) to 44-28(7) of the Act, with certain exclusions for those who do not provide necessary information or have specific agreements that exclude them from receiving the supplement. The Act applies nationally across Australia, covering all states and territories. The Minister for Ageing has the authority to determine the amount of the supplement through legislative instruments, as outlined in the Act, and this Determination serves to implement the current rate. The legislation does not specify exclusions beyond those mentioned in the Act itself, and any further application or restrictions are handled through subordinate instruments.

Key Provisions

The main operative sections of this legislation, the Aged Care (Residential care subsidy – amount of pensioner supplement) Determination 2009 (No. 2), specify the amount of the pensioner supplement under the Aged Care Act 1997. Section 4 of the Determination sets the amount of the pensioner supplement at $6.95 per day, effective from 20 September 2009. This amount is determined by the Minister and replaces the previous Determination ACA Ch. 3 No. 7/2009. The supplement is payable to eligible care recipients, which includes those who meet the requirements of subsection 44-28(2) of the Act but are not excluded under subsections 44-28(3), (5) or (6) of the Act. The Act imposes several obligations on approved providers and care recipients to ensure the eligibility and proper calculation of the pensioner supplement. Approved providers must ensure that care recipients meet the eligibility criteria as outlined in the Act and provide necessary information to determine their total assessable income. Care recipients are required to provide accurate and complete information to facilitate the assessment of their eligibility for the supplement. Failure to provide such information may result in the exclusion from receiving the pensioner supplement. The Determination does not explicitly outline offences, penalties, or consequences for breaches related to the amount of the pensioner supplement. However, under the Aged Care Act 1997, there are broader provisions that apply. For example, if an approved provider or care recipient engages in fraudulent activities or provides false information to obtain the supplement, they could face civil or criminal penalties, including fines and imprisonment. The exact penalties would depend on the nature and severity of the offence, as governed by the general legal framework applicable to the Act.

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Elder Law
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