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.
Overview
The Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2011 (No. 2), issued under the Aged Care Act 1997, aims to set the amount of the pensioner supplement for residential aged care recipients, effective from 20 September 2011. This Determination revokes the previous Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2011 (No. 1), updating the indexed amount of the supplement using a formula based on the Consumer Price Index to reflect changes in non-labour costs of providers. The Determination is a legislative instrument created by the Minister for Mental Health and Ageing under the authority granted by the Act, with the objective of ensuring that the pensioner supplement accurately reflects current economic conditions and the cost of providing care. This approach is consistent with the policy framework established by the Aged Care Amendment (2008 Measures No. 1) Act 2008, which was extensively consulted upon. The increase in the supplement amount will be communicated to approved providers through electronic media.
Scope and Application
The Aged Care Act 1997 governs the regulation and funding of aged care services in Australia, applying to approved providers who deliver residential aged care services to approved care recipients. These providers are eligible to receive residential care subsidy payments, including a pensioner supplement for specific care recipients. The supplement is an additional daily amount provided to care recipients who meet certain criteria, such as receiving an income support payment or having a dependent child, but excludes those who have not agreed to pay a large accommodation bond or have failed to provide necessary income information. The Act's provisions allow the Minister to determine the amount of the pensioner supplement through legislative instruments, such as the Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2011 (No. 2), which sets the supplement amount and revokes its predecessor. This Determination, effective from 20 September 2011, adjusts the supplement based on the Consumer Price Index to reflect changes in non-labour costs. The legislation applies nationally and is supported by subordinate instruments to ensure ongoing compliance and updates.
Key Provisions
The main operative sections of the Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2011 (No. 2) revolve around setting the amount of the pensioner supplement for residential care services provided under the Aged Care Act 1997 (section 5). This Determination, which came into effect on 20 September 2011, indexes the amount of the supplement using a formula based on the Consumer Price Index, thereby reflecting the movements in the non-labour costs of providers. This revision also revokes the previous Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2011 (No. 1) (section 3). The determination includes definitions of terms used (section 4) and specifies the date of commencement (section 2).
Under the Act, approved providers of residential aged care services are obligated to ensure that they meet the eligibility criteria for receiving the pensioner supplement. This includes ensuring that the care recipients meet the requirements of subsection 44-28(2) and are not excluded under subsections 44-28(3), (5) or (6). Care recipients must also be proactive in providing necessary information to determine their total assessable income to avoid disqualification from receiving the supplement. Approved providers must also adhere to the updated amount of the supplement as determined by the Minister and communicated via the Determination.
Breaches of the requirements set out in the Determination could potentially lead to civil or criminal consequences, though the specific offences, penalties, or consequences are not detailed in the provided text. It is essential for parties governed by this Act to comply with the updated provisions to avoid any potential repercussions. The Determination itself does not specify maximum penalties for non-compliance, but general provisions under the Aged Care Act 1997 may apply, which could include fines or other penalties as prescribed by law.