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
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 respite care recipient occupying a place 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.
This determination revokes and replaces the Aged Care (Residential care subsidy – amount of respite supplement) Determination 2007.
The only difference between the revoked determination and this determination is that this determination increases the amount of the respite supplement to be paid in cases where the respite care is provided by a residential care service from 20 March 2008.
This determination provides that:
- 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 $30.50; and
a residential care service that is not certified, the amount of respite supplement for the day is $23.77.
- 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 $42.75. If, for a relevant year, the actual proportion of respite care provided 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 $29.98; and
a residential care service that is not certified, the amount of respite supplement for the day is $36.01. 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 $29.98.
The respite supplement will be indexed on 20 March and 20 September each year. This represents a change from current indexation arrangements whereby indexation has occurred on 1 July each year. The change is in line with the indexation arrangements for the new accommodation supplement.
This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Department of Health and Ageing undertook extensive consultation on the policy that is implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 which amends the Aged Care Act 1997. This Determination results from these amendments.
Overview
The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008, issued under the Aged Care Act 1997, was enacted to address the need for updated financial support for respite care services provided to aged care recipients. The Aged Care Act 1997 originally provided a framework for funding aged care services, including the provision of residential care subsidies. However, the need for a specific supplement to address the additional costs associated with respite care led to the creation of this legislative instrument. The policy objective behind this determination is to ensure that approved providers of residential aged care services receive adequate financial support for the respite care they provide, thus enabling these services to continue offering high-quality care. The determination specifies the amount of the respite supplement for different care classifications and care service types, reflecting the updated indexation arrangements to align with broader changes in the aged care funding system.
Scope and Application
The Aged Care Act 1997, supplemented by the Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008, applies to approved providers of residential aged care services who are eligible for residential care subsidy payments for the care they provide to approved care recipients. The Act is applicable nationally across Australia, with the Minister for Ageing having the authority to determine the amount of the respite supplement, an additional daily payment made to services for each respite care recipient. The supplement is available to all care recipients who meet the criteria outlined in subsection 44-12(2) of the Act, which includes a distinction between low and high care classifications, as well as whether the residential care service is certified or not. The amounts specified in the Determination differ accordingly and are indexed on 20 March and 20 September each year. This Determination revokes and replaces the previous Aged Care (Residential care subsidy – amount of respite supplement) Determination 2007, primarily to increase the amount of the respite supplement for residential care provided from 20 March 2008. Additionally, the approved provider may receive an extra payment if the actual proportion of respite care provided meets or exceeds 70% of the specified proportion of respite care for the provider of the residential care service. The Act and its subsidiary legislation extend its application through the creation of legislative instruments, as defined under the Legislative Instruments Act 2003.
Key Provisions
The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008 (subsection 44-12(3) of the Aged Care Act 1997) outlines the specific amounts of the respite supplement that will be paid to approved providers for care recipients under residential aged care. The determination specifies the amount of the respite supplement for both low and high level care classifications, depending on whether the care is provided by a certified residential care service or a non-certified residential care service. For a low level care classification, the respite supplement is $30.50 for certified services and $23.77 for non-certified services. For a high level care classification, the respite supplement is $42.75 for certified services and $36.01 for non-certified services. Additionally, if the proportion of respite care provided by the approved provider is 70% or more of the specified proportion of respite care for that provider, an additional $29.98 will be paid.
Under this legislation, approved providers of residential aged care services are required to ensure that they meet the criteria for receiving the respite supplement, which includes providing the appropriate level of care to care recipients and ensuring that the respite care provided meets the specified proportion. The respite supplement is intended to provide additional financial support to approved providers for the provision of respite care, which is intended to provide temporary relief to primary carers of care recipients. The determination also specifies that the respite supplement will be indexed on 20 March and 20 September each year, in line with the indexation arrangements for the new accommodation supplement.
Breach of the provisions of the Aged Care Act 1997 or the Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008 may result in civil or criminal penalties. For example, failure to provide the appropriate level of care to care recipients may result in disciplinary action against the approved provider, including the possibility of the provider being removed from the approved provider list. Additionally, any approved provider who is found to have engaged in fraudulent or dishonest conduct in relation to the provision of respite care may be subject to criminal prosecution. The maximum penalties for such offences are set out in the Aged Care Act 1997 and may include fines and imprisonment.
In summary, the Aged Care (Residential care subsidy – amount of respite supplement) Determination 2008 sets out the amount of the respite supplement that will be paid to approved providers of residential aged care services, depending on the level of care provided and whether the service is certified or non-certified. Approved providers are required to meet the criteria for receiving the respite supplement and may be subject to civil or criminal penalties for breach of the legislation. The respite supplement is intended to provide additional financial support to approved providers for the provision of respite care, which is intended to provide temporary relief to primary carers of care recipients.