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 Pensioner 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.
The pensioner supplement is an additional daily amount that is paid to residential care services for 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. 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 2011 (No. 2) ‘the Determination’ is to set the amount of the pensioner supplement with effect from 20 September 2011. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2011 (No. 1).
The difference between the Determinations is that the amount of pensioner 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 Pensioner 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 Pensioner 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 Pensioner Supplement) Determination 2011 (No. 1).
4 Definitions
Section 4 provides definitions for words and terms used in this Determination.
5 Amount of pensioner supplement
Section 5 provides the amount of pensioner supplement payable for a particular day, 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.