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 2009 (No. 1)
(ACA Ch. 3 No. 4/2009)
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 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 sets the amount of the respite supplement with effect from 20 March 2009.
The Determination revokes the previously made Determination.
This Determination differs from the previously made Determination in that the amount of the respite supplement for a day has been increased in accordance with increases in the consumer price index published by the Australian Statistician.
This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Department of Health and Ageing (the Department) 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 amendments to the Principles and other instruments made under the Act.
Further consultation was undertaken by the Department on aged care funding arrangements as part of the Review of the Conditional Adjustment Payment and there is ongoing consultation with the aged care industry on funding arrangements.
As the indexation of the supplement uses a well established formula based on the consumer price index, and is in accordance with policy upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this instrument.
Information about the increase in the amount of the supplement will be sent to all approved providers by facsimile and will be available to the public on the Department’s website.
Overview
The Aged Care Act 1997 was enacted to establish a framework for the funding and provision of aged care services in Australia. This legislation was introduced to address the growing need for structured and reliable aged care services as the population aged. The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2009 (No. 1) was subsequently made under the authority of the Minister for Ageing to further refine the financial aspects of aged care provision. This particular Determination was introduced to update the amount of the respite supplement paid to approved providers of residential care, ensuring that it reflects changes in the consumer price index as published by the Australian Statistician. The policy objective of this Determination is to maintain the purchasing power of the respite supplement, thereby supporting the financial sustainability of aged care services and ensuring that providers are adequately compensated for the care they deliver. The Determination was made following extensive consultation with the aged care industry and other stakeholders, reflecting a commitment to transparent and inclusive policy-making in the sector.
Scope and Application
The Aged Care Act 1997, as amended by the Aged Care Amendment (2008 Measures No. 1) Act 2008, provides for the funding of aged care services and applies to approved providers who are approved under the Act to provide residential aged care services, and the care recipients they serve. This legislation applies nationally, as it is a Commonwealth Act, and its provisions extend to all approved residential aged care services across Australia. The Act sets out the framework for the provision of subsidies to these approved providers, including the respite supplement for eligible care recipients receiving respite care. This supplement, as detailed in the Aged Care (Residential care subsidy – amount of respite supplement) Determination 2009, is an additional daily amount payable to services for each eligible care recipient provided with respite care. The determination specifies that the supplement is subject to increases based on the consumer price index, reflecting the policy decisions informed by extensive consultation with the aged care industry and the public. The Act and its related determinations provide a structured approach to the funding and provision of residential aged care services, ensuring that care recipients receive necessary support while maintaining financial viability for service providers.
Key Provisions
The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2009 (No. 1) sets out the updated amount of the respite supplement that is payable to approved providers for each eligible care recipient receiving respite care. This amount is determined by the Minister under subsection 44-12(3) of the Aged Care Act 1997, and is indexed to increases in the consumer price index published by the Australian Statistician. The supplement amount is increased accordingly to reflect the rising costs of providing aged care services. This Determination replaces a previous one and has been effective since 20 March 2009.
Under this Determination, approved providers who offer residential aged care services are eligible to receive the residential care subsidy, including the respite supplement for each eligible care recipient. The eligibility for the respite supplement is determined by subsection 44-12(2) of the Aged Care Act 1997, which specifies the criteria for care recipients to qualify for the supplement. The Department of Health and Ageing ensures that all approved providers are informed about the updated supplement amount via facsimile and through their website.
The Determination imposes obligations on approved providers to accurately claim the respite supplement for eligible care recipients, ensuring they meet the criteria as outlined in the Aged Care Act 1997. These providers must also ensure they are aware of the updated supplement amount to correctly calculate their subsidy payments. The Department of Health and Ageing is responsible for monitoring compliance with these obligations and ensuring the proper distribution of funds.
Failure to comply with the requirements set out in the Aged Care Act 1997 and this Determination may result in various consequences, including financial penalties or legal action. While the Determination itself does not specify exact penalties for non-compliance, breaches of the Act could lead to civil or criminal liability. The potential penalties for breaches of the Act could include fines and other sanctions, as stipulated under the relevant provisions of the Aged Care Act 1997.