EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Residential care subsidy – amount of respite supplement)
Determination 2008 (No. 2)
(ACA Ch. 3 No. 25/2008)
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.
Subsection 44-12(3) of the Act provides that the Minister may determine, by legislative instrument, the amount of the respite supplement.
The respite supplement is an additional daily amount that is paid to services for each eligible care recipient being provided with respite care through in the service on that day.
All care recipients who meet the requirements of subsection 44-12(2) of the Act are eligible for the respite supplement.
The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008 (No. 2) (the Determination) commences on 20 September 2008. The Determination revokes and replaces the Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008 (the previous Determination).
The Determination contains minor differences to the previous Determination in that the amount of the respite supplement to be paid is increased where the respite care is provided by a residential care service from 20 September 2008.
The Determination provides that, on a day:
- for a care recipient with a low level care classification who is receiving residential care through:
a certified residential care service, the amount of respite supplement for the day is $31.35; or
a residential care service that is not certified, the amount of respite supplement for the day is $24.44.
- for a care recipient with a high level care classification:
who is receiving residential care through a certified residential care service, the amount of respite supplement for the day is $43.95; or
who is receiving residential care through a residential care service that is not certified, the amount of respite supplement for the day is $37.02; and
if, for a relevant year, the actual proportion of respite care provided through the residential care service is equal to or greater than 70% of the specified proportion of respite care for the approved provider of the residential care service, the approved provider receives an additional $30.82.
The respite supplement is indexed on 20 March and 20 September each year in line with the indexation arrangements for the accommodation supplement.
This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
As the indexation of this supplement uses a well established formula for indexation, no specific consultation with industry was undertaken with respect to this instrument.
Overview
The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008 (No. 2) was enacted to amend the amount of the respite supplement for residential aged care services under the Aged Care Act 1997. The Aged Care Act 1997, enacted by the Australian Parliament, provides for the funding of aged care services and sets out the eligibility criteria for residential care subsidy payments for approved providers of aged care services. The Determination was introduced to address the need for an updated calculation of the respite supplement, which is an additional daily payment made for each eligible care recipient receiving respite care. The policy objective of this Determination is to ensure that the respite supplement is appropriately indexed and reflects the current cost of providing respite care.
The Determination, issued under the authority of the Minister for Ageing, replaces the previous Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008 and comes into effect on 20 September 2008. It increases the amount of the respite supplement for care recipients with varying levels of care classification, depending on whether the respite care is provided by a certified or non-certified residential care service. Additionally, it includes an additional payment for approved providers whose actual proportion of respite care provided is equal to or greater than 70% of the specified proportion for the relevant year. The respite supplement is indexed on 20 March and 20 September each year in line with the indexation arrangements for the accommodation supplement.
Scope and Application
The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008 (No. 2) applies to approved providers who deliver residential aged care services under the Aged Care Act 1997, and to the care recipients they serve. The Act provides for the funding of aged care services, and those approved providers eligible to receive residential care subsidy payments can also qualify for the respite supplement. This supplement is an additional amount paid for each eligible care recipient receiving respite care. The Determination specifies the amount of the supplement based on the care recipient's level of care classification and whether the residential care service is certified or not. The supplement amount is indexed annually in line with the indexation arrangements for the accommodation supplement. The Determination has a national reach, applying across Australia under the Commonwealth's legislative authority. There are no specific exclusions or exemptions mentioned in the text, but the eligibility criteria for the supplement are determined by the requirements of the Aged Care Act 1997. The Act allows the Minister to extend or restrict the application of the Determination through subordinate instruments.
Key Provisions
The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008 (No. 2) (the Determination) sets out the amounts of the respite supplement to be paid to approved providers of residential aged care services for each eligible care recipient receiving respite care (section 1). The Determination specifies different amounts based on the level of care required by the care recipient and whether the residential care service is certified (section 2). For a care recipient with a low level care classification, the respite supplement is $31.35 if provided by a certified service and $24.44 if provided by an uncertified service. For a care recipient with a high level care classification, the supplement is $43.95 if provided by a certified service and $37.02 if provided by an uncertified service. Additionally, if the proportion of respite care provided by an uncertified service is 70% or more of the specified proportion, the provider receives an additional $30.82 (section 3).
Approved providers of residential aged care services, who are eligible to receive residential care subsidy payments, must adhere to the provisions outlined in the Determination (section 4). This includes correctly categorising the level of care provided to each care recipient and accurately calculating the respite supplement payable in accordance with the specified rates (section 5). The amounts are to be indexed annually on 20 March and 20 September to align with the indexation arrangements for the accommodation supplement (section 6).
The Determination does not explicitly outline offences, penalties, or consequences for breaches. However, failure to comply with the Determination could potentially lead to non-compliance with the Aged Care Act 1997, which could result in the withholding of subsidy payments or other enforcement actions by the Minister. The Act itself provides for a range of penalties, including fines and imprisonment, for breaches related to the provision of false or misleading information in applications for subsidies or other benefits (section 44-12). While the Determination itself does not specify penalties, adherence to its provisions is essential to ensure compliance with the broader legislative framework governing aged care subsidies.