EXPLANATORY STATEMENT
Issued by the authority of the Minister for Social Services
Aged Care Act 1997
Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement)
Determination 2013 (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 2013 (No. 2) ‘the Determination’ is to set the amount of the pensioner supplement with effect from 20 September 2013. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2013 (No. 1).
Consultation
Routine indexation of the supplement uses a well-established formula based on the consumer price index (CPI) as a measure of the movements in the non-labour costs of providers. As this is in accordance with policy upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this indexation.
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 2013.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2013 (No. 2) was enacted to address the need for adjusting the pensioner supplement paid to residential aged care services under the Aged Care Act 1997. This Determination, issued by the authority of the Minister for Social Services, establishes the amount of the pensioner supplement, which is an additional daily payment to care providers for eligible care recipients, and revokes the previous Determination from the same year. The objective of the Determination is to ensure the supplement is adjusted in accordance with the consumer price index, reflecting changes in the non-labour costs of providers, and to maintain consistency with existing policy following extensive consultation.
The Determination was developed in line with established policy and did not require specific consultation regarding the indexation method, as it adheres to a well-recognised formula. Information regarding the updated supplement amount will be communicated to approved providers through electronic media, and the Determination came into effect on 20 September 2013. It is a legislative instrument under the Legislative Instruments Act 2003.
Scope and Application
The Aged Care Act 1997 applies to approved providers of residential aged care services, who can be eligible to receive residential care subsidy payments for the care they provide to approved care recipients. The Act regulates and funds aged care services, and the pensioner supplement, an additional daily amount paid to residential care services, applies to care recipients who meet certain requirements, including pre-2008 reform residents who receive an income support payment or have a dependent child, subject to certain exclusions such as failure to provide information for determining total assessable income. The Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2013 (No. 2) sets the amount of the pensioner supplement and revokes the previous Determination. The Determination is based on the consumer price index and is disseminated to approved providers via electronic media. This legislative instrument applies nationally and is subject to the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2013 (No. 2) are set out to establish the amount of the pensioner supplement, which is an additional daily amount paid to residential care services for eligible care recipients. Section 44-28(7) of the Aged Care Act 1997 authorises the Minister to determine the amount of this supplement through a legislative instrument. This Determination, therefore, sets forth the specific amount of the supplement effective from 20 September 2013 and revokes the previous Determination from the same year. Eligibility for this supplement is contingent upon meeting certain criteria, such as being an approved care recipient under the Act and not being excluded under specific subsections of the Act.
The Act imposes several obligations and requirements on the parties involved. Approved providers who wish to receive the residential care subsidy must ensure that their care recipients meet the eligibility criteria for the pensioner supplement. Care recipients must be approved under the Act and must not fall under the exclusions outlined in subsections 44-28(3), (5), or (6). Moreover, they must provide necessary information to determine their total assessable income. Failure to provide such information can result in ineligibility for the supplement. Approved providers must also comply with the new supplement amount as determined by this legislative instrument.
Breaches of the requirements set out in the Aged Care Act 1997 and the Aged Care (Residential Care Subsidy – Amount of Pensioner Supplement) Determination 2013 (No. 2) may result in civil or criminal consequences. However, the specific offences, penalties, or consequences are not detailed in the explanatory statement. Generally, under the Aged Care Act 1997, breaches could potentially lead to financial penalties or legal action against the parties involved. For example, failure to provide accurate information or misreporting of income could result in fines or other penalties as prescribed by law. While the explanatory statement does not specify maximum penalties, such consequences would typically be outlined in the Act or related legislation.