Aged Care (Residential Care Subsidy - Amount of Pensioner Supplement) Determination 2012 (No. 2)

Overview

The Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2012 (No. 2) was enacted to address the need for indexation of the pensioner supplement, an additional daily amount paid to residential care services for eligible care recipients under the Aged Care Act 1997. This Determination was introduced by the Minister for Mental Health and Ageing to ensure that the pensioner supplement is adjusted in accordance with the Consumer Price Index, reflecting the non-labour cost changes for providers. The Determination revokes the earlier Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2012 (No. 1) and sets the indexed amount of the pensioner supplement effective from 20 September 2012. The policy objective aligns with the general policy for indexation of aged care payments, ensuring that the supplement amount keeps pace with inflation and maintains the affordability and sustainability of aged care services.

Scope and Application

The Aged Care Act 1997 applies to approved providers who offer residential aged care services and to approved care recipients who receive these services, including those who are eligible for the pensioner supplement. The Act operates on a Commonwealth level, regulating and funding aged care services across Australia. The pensioner supplement is a financial addition to the residential care subsidy payments for eligible care recipients who meet specific criteria, such as receiving an income support payment or having a dependent child, but excludes those who have not provided necessary information for income assessment. The supplement amount is determined by the Minister, with the Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2012 (No. 2) setting the indexed amount effective from 20 September 2012. This Determination replaces a previous one and is enacted under the Legislative Instruments Act 2003. The supplement is indexed using a formula based on the Consumer Price Index, reflecting changes in non-labour costs for providers.

Key Provisions

The Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2012 (No. 2) outlines the revised amount of the pensioner supplement to be paid to residential aged care services (sections 1 and 2). This supplement is an additional daily payment made for eligible care recipients who meet specific criteria under subsections 44-28(2), (3), (5) and (6) of the Aged Care Act 1997, such as those receiving an income support payment and not having agreed to pay a large accommodation bond, or having a dependent child. However, the supplement is not provided to those who fail to or elect not to provide necessary information for determining their total assessable income (subsection 44-28(7)). This Determination sets the indexed amount of the supplement effective from 20 September 2012, replacing the previous Determination from the same year (section 3). Approved providers of residential aged care services, who are approved under the Aged Care Act 1997, are eligible to receive this subsidy for the care they provide to approved care recipients (section 1). The providers must ensure that the care recipients meet the eligibility criteria for the pensioner supplement and are aware of the conditions that may result in the exclusion of the supplement (subsections 44-28(2), (3), (5) and (6)). The providers must also ensure that the care recipients provide the necessary information for determining their total assessable income, as failure or refusal to do so may result in the exclusion of the supplement (subsection 44-28(7)). The approved providers are required to accurately calculate and claim the pensioner supplement for eligible care recipients, in accordance with the Determination. The Determination does not explicitly outline any specific offences, penalties, or consequences for breach. However, failure to comply with the requirements of the Aged Care Act 1997 and the Determination may result in the withholding of the pensioner supplement for the eligible care recipients. Additionally, non-compliance with the Aged Care Act 1997 may result in various civil or criminal consequences, as outlined in the Act, such as fines and imprisonment. The penalties for breach of the Act will depend on the nature and severity of the offence, and will be determined by the relevant authorities. The Determination was made in accordance with the general policy for indexation of aged care payments, which involved extensive consultation. Although no specific consultation was 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. The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003, and it commenced on 20 September 2012.