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 2010 (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.
The purpose of the Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2010 (No. 2) (the Determination) is to set the amount of respite supplement with effect from 20 September 2010. This Determination also revokes Aged Care (Residential care subsidy – amount of respite supplement) Determination 2010 (No. 1).
The difference between the Determinations is that the amount of respite supplement for a day has been increased in accordance with increases in the consumer price index (CPI) as a measure of movements in the non-labour costs of providers.
Consultation
The Department of Health and Ageing 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 instruments.
Further consultation was undertaken as part of the Review of the Conditional Adjustment Payment and is ongoing in relation to funding arrangements.
Indexation of the supplement uses a well established formula based on the 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 instrument.
Information about the increase in the amount of the supplement will be disseminated via print and electronic media to approved providers.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care Act 1997 was enacted to provide for the funding of aged care services in Australia, ensuring that approved residential aged care services and their care recipients have access to necessary subsidies and supports. To address the need for periodic adjustments in the funding structure, particularly in relation to the respite supplement, the Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2010 (No. 2) was introduced. This determination, made by the Minister for Ageing, sets the amount of the respite supplement, an additional payment to services for each eligible care recipient receiving respite care, with effect from 20 September 2010. This determination also revokes the previous Aged Care (Residential care subsidy – amount of respite supplement) Determination 2010 (No. 1). The primary objective of this legislative instrument is to align the respite supplement with the consumer price index, thereby reflecting changes in non-labour costs of providers and ensuring that the supplement remains relevant and adequate.
Scope and Application
The Aged Care Act 1997 applies to approved providers who offer residential aged care services, as well as to approved care recipients who are eligible for the services provided. This legislation is in effect across the Commonwealth of Australia, governing the funding and administration of aged care services nationwide. It establishes the framework for residential care subsidy payments to approved providers, which in turn can benefit eligible care recipients through additional financial support in the form of a respite supplement. The Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2010 (No. 2) specifies the amount of the respite supplement, which is an additional daily payment made to services for each eligible care recipient receiving respite care. This Determination, which updates and replaces the previous Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2010 (No. 1), reflects adjustments in the consumer price index to account for changes in the non-labour costs of providers. The Determination is a legislative instrument governed by the Legislative Instruments Act 2003 and it revokes its predecessor to ensure clarity and consistency in the application of the law.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2010 (No. 2) sets out the new amount for the respite supplement, which is an additional daily payment to services for each eligible care recipient receiving respite care. This Determination was made under the Aged Care Act 1997 and reflects changes in the consumer price index (CPI) to account for movements in the non-labour costs of providers. The amount of the respite supplement has been increased in line with these changes, and the Determination replaces the previous Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2010 (No. 1).
The Act imposes obligations on approved providers who are eligible to receive residential care subsidy payments for the care they provide to approved care recipients. These providers must meet the requirements set out in the Act and any subsidiary legislation, including the Determination, to be eligible for the respite supplement. All care recipients who meet the criteria specified in subsection 44-12(2) of the Act are eligible for the respite supplement.
Failure to comply with the provisions of the Determination could result in civil or criminal consequences. The specific penalties for breach of the Determination are not stated in the explanatory statement, but the Act provides for a range of penalties for non-compliance, including fines and imprisonment. The maximum penalties will depend on the nature and severity of the offence.
The Department of Health and Ageing has undertaken extensive consultation on the policy of increasing the rates of supplements, and the Determination is consistent with this policy. Information about the increase in the amount of the supplement will be disseminated to approved providers through print and electronic media. The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003, which sets out the requirements for the making and operation of legislative instruments.