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 2010 (No. 1)
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.
The purpose of the Aged Care (Residential care subsidy – amount of pensioner supplement) Determination 2010 (No. 1) (the Determination) is to set the amount of the pensioner supplement with effect from 20 March 2010. This Determination also revokes Aged Care (Residential care subsidy – amount of pensioner supplement) Determination 2009 (No. 2).
The difference between the Determinations is that the amount of pensioner supplement for a day has been increased in accordance with increases in the consumer price index published by the Australian Statistician.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
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 instruments.
Further consultation was also undertaken as part of the Review of the Conditional Adjustment Payment and is ongoing in relation to 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 Act 1997 provides a framework for the funding of aged care services, including residential care subsidies for approved providers who offer care to approved recipients. One aspect of this is the pensioner supplement, which is payable to certain care recipients under subsection 44-28(2) of the Act, provided they meet specific criteria and are not excluded under certain subsections. The Aged Care (Residential care subsidy – amount of pensioner supplement) Determination 2010 (No. 1) was enacted to set the amount of the pensioner supplement, effective from 20 March 2010, and to revoke the previous Determination from 2009. This Determination was introduced to adjust the supplement amount in line with increases in the consumer price index, as published by the Australian Statistician. The policy objective, as part of broader consultation processes by the Department of Health and Ageing, was to ensure that the supplement remains equitable and reflective of cost of living changes, thereby maintaining the support available to eligible aged care recipients.
Scope and Application
The Aged Care Act 1997 governs the funding of aged care services in Australia, encompassing residential care subsidies for approved providers who deliver care to eligible recipients. This legislation applies to approved providers and care recipients who meet specific criteria, including those who receive an income support payment without agreeing to a large accommodation bond or have dependent children, while excluding those who fail to provide necessary income information. The Aged Care (Residential care subsidy – amount of pensioner supplement) Determination 2010 (No. 1) sets the amount of the pensioner supplement, reflecting increases in the consumer price index, and it revokes the previous 2009 Determination. The Act and its subordinate instruments extend their application nationally, with the Department of Health and Ageing leading on consultations and policy implementation. This Determination follows extensive consultation and uses a well-established indexation formula, ensuring that approved providers and care recipients are appropriately informed about the changes.
Key Provisions
The Aged Care (Residential care subsidy – amount of pensioner supplement) Determination 2010 (No. 1) specifies the amount of the pensioner supplement for residential aged care services provided under the Aged Care Act 1997 (section 44-28). This Determination establishes the financial supplement that approved providers can receive for the care they offer to eligible care recipients, effective from 20 March 2010. It also revokes the previous Aged Care (Residential care subsidy – amount of pensioner supplement) Determination 2009 (No. 2), replacing it with updated rates. The supplement amount has been adjusted to reflect increases in the consumer price index as published by the Australian Statistician. The purpose of these adjustments is to ensure that the supplement keeps pace with inflation, thereby maintaining its real value.
The Act imposes obligations on approved providers to ensure they meet the criteria for receiving the pensioner supplement. Approved providers must ensure their care recipients are eligible for the supplement, which includes verifying that the care recipients meet the conditions specified in subsection 44-28(2) of the Act and are not excluded under subsections 44-28(3), (5), or (6). Care recipients must also provide necessary information to determine their total assessable income, and they cannot receive the supplement if they fail or elect not to provide this information. Approved providers must comply with these requirements to be eligible for the subsidy payments.
Failure to comply with the requirements set out in the Act and the Determination can lead to civil and criminal consequences. While the Determination itself does not specify penalties, breaches of the Aged Care Act 1997 may result in fines and other penalties as stipulated in the Act. For instance, providing false or misleading information to obtain a subsidy could result in significant fines under the general penalty provisions of the Act. Additionally, serious breaches may be subject to criminal charges, potentially leading to imprisonment depending on the severity and intent of the breach. The specific penalties are outlined in the Aged Care Act 1997, and adherence to the legislative requirements is crucial to avoid these consequences.