EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Residential care subsidy – amount of
transitional accommodation 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 44-16(1) of the Aged Care Act 1997 (the Act) provides that the Residential Care Subsidy Principles 1997 (the Principles) may provide for additional primary supplements.
Subsection 44-16(3) of the Act provides that the Minister may determine in writing the amount of additional primary supplements or the way in which the amount of the supplement is to be worked out.
Section 21.25E of the Principles describes the ‘transitional accommodation supplement’ (TAS) which is a type of additional primary supplement. The section also sets out the circumstances in which TAS is payable.
The purpose of TAS is to smooth the introduction of the new accommodation payment arrangements (taking effect from 20 March 2008). To this end, the Commonwealth will pay aged care providers TAS in respect of certain post-2008 reform residents who enter low‑level care (where the resident may be eligible to pay an accommodation bond) from 20 March 2008 and 19 September 2011 inclusive.
This determination sets the amounts of TAS for such residents.
The determination provides that the amount of TAS that is payable in respect of residents who enter residential care for the first time after 19 March 2008 (or re-enter residential care after 19 March 2008, having had a break in residential care of more than 28 days), varies depending on the date of the resident’s entry (or re-entry) to a residential care service:
- for residents who enter after 19 March 2008 and before 20 September 2010, TAS is the full pensioner supplement amount ($6.64) less the amount of accommodation supplement payable for the care recipient;
- for residents who enter after 19 September 2010 and before 20 March 2011, TAS is 2/3 the rate of the pensioner supplement ($4.43) less the amount of accommodation supplement payable for the care recipient; and
- for residents who enter after 19 March 2011 and before 20 September 2011, TAS is 1/3 the rate of the pensioner supplement ($2.21) less the amount of accommodation supplement payable for the care recipient.
TAS is not payable for residents who enter residential care for the first time after 20 September 2011.
The effect of this is that initially TAS will fully offset the loss of pensioner supplement and largely offset the loss of the additional basic daily fee (paid by self‑funded retirees or pensioners who have paid a ‘big bond’) for low-care residents. This will allow approved providers time to adjust to the new accommodation payment arrangements.
Once TAS is payable, it will continue to be paid for the entire period that the resident is in residential care. If the resident moves, and the break in residential care is less than 28 days, the same rate of TAS will be payable in the following service.
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 flows from these amendments.