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. 2)
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 September 2009 and revokes Determination ACA Ch. 3 No. 4/2009.
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 respite supplement will be disseminated via print and electronic media to approved providers.
Overview
The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2009 (No. 2) was enacted to provide for the adjustment of the amount of the respite supplement paid to approved providers of residential aged care services. This Determination is a legislative instrument made under the Aged Care Act 1997, and it was issued by the authority of the Minister for Ageing. The primary objective of this legislation is to ensure that the respite supplement reflects changes in the cost of living, as indexed by the consumer price index, thereby maintaining the purchasing power of the supplement for eligible care recipients receiving respite care. This Determination sets the amount of the respite supplement effective from 20 September 2009, superseding the previous Determination ACA Ch. 3 No. 4/2009. Extensive consultation was undertaken by the Department of Health and Ageing regarding the policy changes, including those related to supplement rates, as implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 and other relevant amendments. Information about the increase in the respite supplement will be communicated to approved providers through print and electronic media.
Scope and Application
The Aged Care (Residential care subsidy – amount of respite supplement) Determination 2009 applies to approved providers of residential aged care services under the Aged Care Act 1997, and to eligible care recipients who meet the criteria for receiving respite care services. The determination sets the amount of the respite supplement, which is an additional daily payment made to services for each eligible care recipient receiving respite care. This supplement is subject to the legislative framework established by the Aged Care Act 1997, and the determination itself is a legislative instrument issued by the Minister for Ageing. The determination has a national reach, impacting all approved providers and eligible care recipients across Australia. The supplement is calculated based on a well-established formula tied to the consumer price index, and while the determination itself does not introduce new exclusions or exemptions, the eligibility criteria for the supplement are governed by subsection 44-12(2) of the Act. The application of the Act may be further refined through subordinate instruments, which may provide additional details or clarifications on the implementation of the supplement.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2009 (No. 2) specifies the amount of the respite supplement, an additional daily payment made to services for each eligible care recipient receiving respite care. This supplement, as stipulated in subsection 44-12(3) of the Aged Care Act 1997, is payable to approved providers who offer residential aged care services to approved care recipients. The Determination, effective from 20 September 2009, replaces the previous Determination ACA Ch. 3 No. 4/2009. It is a legislative instrument issued by the Minister for Ageing under the authority granted by the Act.
The obligations under this Determination require approved providers to ensure they meet the eligibility criteria for the respite supplement as outlined in subsection 44-12(2) of the Act. Approved providers must maintain records and documentation to substantiate their claims for the supplement, and must adhere to the guidelines and payment schedules set forth by the Department of Health and Ageing. Additionally, the Determination mandates that the Department of Health and Ageing, which undertook extensive consultation on the policy, will disseminate information about the supplement increase through print and electronic media to all relevant parties.
Failure to comply with the requirements of the Aged Care Act 1997 and the Determination can result in civil and criminal consequences. While the specific penalties are not detailed in the Determination itself, breaches of the Act generally may lead to fines, penalties, or other legal actions. The Department of Health and Ageing is responsible for enforcing the provisions of the Act, and may take appropriate action against providers who do not comply with the stipulated requirements. The Determination emphasises the importance of adhering to the established policies and guidelines to ensure the smooth administration of the respite supplement.