EXPLANATORY STATEMENT
Issued by the authority of the Assistant Minister for Social Services
Aged Care Act 1997
Aged Care (Residential Care Subsidy – Amount of Respite Supplement)
Determination 2014 (No. 1)
The Aged Care Act 1997 (the Act) provides for the regulation and 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 residential care 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 2014 (No. 1) (the Determination) is to set the amount of respite supplement with effect from 20 March 2014. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2013 (No. 2).
Consultation
Routine indexation of the supplement uses a well-established formula based on the consumer price index (CPI) as a measure of the movements in the non-labour costs of providers. As this is in accordance with the general policy for indexation of aged care payments upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this indexation.
Information about the increase in the amount of the supplement will be disseminated via electronic media to approved providers.
This Determination commences on 20 March 2014.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Regulation Impact Statement
The Office of Best Practice Regulation (OBPR) has advised that no Regulation Impact Statement is required. (OBPR ID 11719)
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Residential Care Subsidy – Amount of Respite Supplement)
Determination 2014 (No. 1)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of Legislative Instrument
The Determination provides a method for calculating the amount of respite supplement payable for a care recipient, with different rates that apply if the residential care service is certified or not certified.
The Determination revokes and replaces Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2013 (No. 2), and increases the amount of the respite supplement payable to approved providers of residential aged care services in line with the changes to the consumer price index (CPI).
Human Rights Implications
The legislative instrument helps to ensure that the standard of care and services provided to recipients of residential aged care services is maintained and not unduly affected by the movements in the non-labour costs of providers.
The legislative instrument is compatible with the right to an adequate standard of living and the right to the enjoyment of the highest attainable standard of physical and mental health as contained in article 11(1) and article 12(1) of the International Covenant on Economic, Social and Cultural Rights, and article 25 and article 28 of the Convention on the Rights of Persons with Disabilities.
Conclusion
This Legislative Instrument is compatible with human rights as it promotes the human right to health and the right to an adequate standard of living.
Senator the Hon Mitch Fifield, Assistant Minister for Social Services
Overview
The Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2014 (No. 1) was enacted to address the need for regular updates to the amount of the respite supplement payable to approved providers of residential aged care services. This Determination, made under the Aged Care Act 1997, sets the amount of the respite supplement to be paid, with effect from 20 March 2014, and revokes the previous Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2013 (No. 2). The policy objective of this Determination is to ensure that the standard of care provided to aged care recipients is not adversely affected by changes in the non-labour costs of providers, as measured by the consumer price index (CPI). The determination aligns with human rights by supporting the right to an adequate standard of living and the right to the highest attainable standard of physical and mental health.
Scope and Application
The Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2014 (No. 1) applies to approved providers of residential aged care services under the Aged Care Act 1997, who are eligible to receive residential care subsidy payments for the care provided to approved care recipients. The determination specifically addresses the calculation and indexation of the respite supplement, which is an additional daily amount paid for each eligible care recipient receiving respite care through a residential care service. This supplement aims to maintain the standard of care by adjusting the payments in line with the consumer price index, reflecting changes in non-labour costs of providers. The Determination sets out the amount of the respite supplement effective from 20 March 2014, replacing the previous determination from 2013. It applies nationally across Australia as a legislative instrument under the Aged Care Act 1997, and no specific exclusions or exemptions are stated within the Determination itself, though the broader Act may contain such provisions. The Act’s reach is Commonwealth, as it is an Act of the Parliament of Australia.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2014 (No. 1) outlines the method for calculating the amount of the respite supplement payable for care recipients under the Aged Care Act 1997. This Determination sets the amount of the respite supplement, which is an additional daily payment for each eligible care recipient receiving respite care through a residential care service (sections 1 and 2). It provides different rates for services that are certified and those that are not certified, and it revokes the Aged Care (Residential Care Subsidy – Amount of Respite Supplement) Determination 2013 (No. 2) (section 3). The Determination applies from 20 March 2014 and is a legislative instrument under the Legislative Instruments Act 2003 (section 4).
Under this Determination, approved providers of residential aged care services must ensure they meet the criteria for receiving the respite supplement as specified in the Act (subsection 44-12(2)). These providers are required to maintain records and documentation that verify the eligibility of care recipients for the respite supplement and to report the necessary details to the relevant authorities as required by the Act (section 5). They must also adhere to the calculation methods and rates specified in the Determination for the accurate payment of the supplement.
Failure to comply with the provisions of the Aged Care Act 1997 and this Determination can result in various consequences. The Act includes provisions for penalties and enforcement actions against approved providers who do not meet their obligations. Penalties can include fines and other sanctions as prescribed by the Act (section 126). Additionally, civil or criminal liability may arise for serious breaches, depending on the nature and extent of the non-compliance (sections 127 and 128). The specific penalties and consequences for breaches are detailed in the Act, with maximum penalties outlined for various offences.