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.
Overview
The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2008, enacted by the Australian government, aims to address the gap that emerged following the introduction of new accommodation payment arrangements for residential aged care services under the Aged Care Act 1997. This legislation, implemented by the Minister for Ageing, provides a transitional accommodation supplement (TAS) to smooth the transition of these new payment arrangements, ensuring that aged care providers have time to adjust to the changes. The policy objective is to support the aged care sector during this period of reform by offering financial assistance to cover the loss of certain supplements for low-care residents entering residential care between 20 March 2008 and 19 September 2011.
Scope and Application
The Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2008 applies to approved providers who offer residential aged care services and who are eligible to receive residential care subsidy payments under the Aged Care Act 1997. These approved providers can include both public and private entities that deliver residential care to approved care recipients. The determination specifies the amount of transitional accommodation supplement (TAS) that is payable to such providers for certain post-reform residents who enter low-level care between 20 March 2008 and 19 September 2011, inclusive. The amount of TAS varies depending on the date of the resident’s entry into residential care. The Commonwealth’s geographic reach under this determination is national, as the Aged Care Act 1997 is a Commonwealth Act. There are no explicit exclusions or exemptions mentioned in the determination, although TAS is not payable for residents who enter residential care for the first time after 20 September 2011. The application of this Act can be further detailed through subordinate instruments, as permitted under the Aged Care Act 1997.
Key Provisions
The Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2008 sets out the rates for the transitional accommodation supplement (TAS) payable under the Aged Care Act 1997 (the Act) to approved providers of residential aged care services. According to section 21.25E of the Residential Care Subsidy Principles 1997 (the Principles), TAS is a type of additional primary supplement that smooths the introduction of the new accommodation payment arrangements, effective from 20 March 2008. The purpose of TAS is to offset the loss of pensioner supplement and the additional basic daily fee for low-care residents until approved providers can adjust to the new arrangements. The amount of TAS payable varies depending on the date of the resident's entry into residential care, with the highest rate ($6.64) payable for residents entering before 20 September 2010, and the lowest rate ($2.21) payable for residents entering after 19 March 2011. TAS is not payable for residents who enter residential care after 20 September 2011.
The Act imposes certain obligations on approved providers of residential aged care services, including ensuring that they meet the eligibility criteria for receiving TAS payments. Approved providers must also ensure that they comply with the conditions set out in the Principles for the payment of TAS, such as the requirement that TAS be paid for the entire period that the resident is in residential care, even if the resident moves to a different service. The Act also requires approved providers to report any changes in the resident's care needs or accommodation status that may affect their eligibility for TAS.
Breach of the provisions of the Act or the Principles may result in civil or criminal consequences, including fines and imprisonment. The maximum penalties for breach of the Act or the Principles vary depending on the nature and severity of the breach. For example, section 136 of the Act provides for a maximum penalty of $12,600 for each day that an approved provider fails to comply with a requirement or prohibition under the Act, while section 138 of the Act provides for a maximum penalty of $63,000 and/or imprisonment for up to two years for serious or repeated breaches of the Act. Similarly, section 21.25F of the Principles provides for a maximum penalty of $12,600 for each day that an approved provider fails to comply with a requirement or prohibition under the Principles. It is important for approved providers to be aware of their obligations under the Act and the Principles, and to take steps to ensure compliance to avoid potential penalties and consequences.