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 2009(No. 1)
(ACA Ch. 3 No. 5/2009)
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 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 each additional primary supplements or the way in which the amount of the supplement is to be worked out.
Section 21.25E of the Principles provides for the transitional accommodation supplement (TAS) which is a type of additional primary supplement. That 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, which took 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 care (for which the resident is eligible to pay an accommodation bond) between 20 March 2008 and 19 September 2011 inclusive.
This Determination sets the amount of TAS for such residents with effect from 20 September 2008, and the increased maximum amount of TAS with effect from 20 March 2009.
The Determination revokes the previously made Determination.
The key difference between this Determination and the previous Determination is that, with effect from 20 March 2009, the maximum amount of TAS for a day has been increased in accordance with the increase in the pensioner supplement, which in turn is being increased in accordance with the consumer price index published by the Australian Statistician.
This Determination also clarifies the previous Determination, which did not clearly specify an amount of TAS for residents whose entry to a residential care service was in the period from 20 March 2008 to 19 September 2008.
This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
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 the supplement will be sent to all approved providers by facsimile and will be available to the public on the Department’s website.
Overview
The Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2009 (No. 1) was enacted to address the transitional needs arising from the new accommodation payment arrangements introduced under the Aged Care Act 1997. This legislation, issued under the authority of the Minister for Ageing, aims to provide a transitional accommodation supplement (TAS) to smooth the introduction of these new arrangements. The TAS is intended to support aged care providers for specific residents entering care between 20 March 2008 and 19 September 2011. The policy objective behind this Determination is to ensure a seamless transition by offering financial support during the implementation phase of the new payment arrangements. This Determination also revises and clarifies the previous Determination, addressing ambiguities regarding the amount of TAS for certain residents, and incorporates an increase in the maximum amount of TAS from 20 March 2009, aligned with the increase in the pensioner supplement as per the consumer price index.
Scope and Application
The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2009 (No. 1) applies to approved providers of residential aged care services who are eligible to receive residential care subsidy payments under the Aged Care Act 1997. The Determination sets the amount of the transitional accommodation supplement (TAS) that these providers can receive for certain post-2008 reform residents who entered care between 20 March 2008 and 19 September 2011. The Act applies on a Commonwealth level, with the Department of Health and Ageing responsible for administering the residential care subsidy and associated supplements. The Determination increases the maximum amount of TAS in line with the pensioner supplement, which is indexed to the consumer price index published by the Australian Statistician. The Determination revokes the previous Determination and clarifies the amount of TAS for residents who entered care before 20 March 2009. The Determination is a legislative instrument under the Legislative Instruments Act 2003 and does not contain any exclusions, exemptions, or thresholds. Subordinate instruments may be used to further extend or restrict the application of the Determination.
Key Provisions
The Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2009 (No. 1) establishes the amount of the transitional accommodation supplement (TAS) payable under section 21.25E of the Residential Care Subsidy Principles 1997 (subsection 44-16(3) of the Aged Care Act 1997). This Determination sets the amount of TAS for residents who enter care between 20 March 2008 and 19 September 2011 inclusive, and clarifies the previous Determination by specifying an amount of TAS for those who entered care in the period from 20 March 2008 to 19 September 2008 (section 3). It also increases the maximum amount of TAS with effect from 20 March 2009 in accordance with the increase in the pensioner supplement, which is being increased in accordance with the consumer price index published by the Australian Statistician (section 4).
Approved providers of residential aged care services who are eligible to receive residential care subsidy payments in respect of the care they provide to approved care recipients can receive TAS in respect of certain post-2008 reform residents who enter care between 20 March 2008 and 19 September 2011 inclusive (subsection 21.25E(1) of the Principles). The obligation on approved providers is to ensure that they are aware of the amount of TAS payable and that they are able to claim it for eligible residents. The obligation on the Commonwealth is to pay TAS to approved providers in respect of eligible residents.
There are no offences, penalties, or civil/criminal consequences specified in this Determination for breach. However, failure to comply with the requirements of the Aged Care Act 1997 or the Residential Care Subsidy Principles 1997 may result in consequences such as termination of approval to provide residential aged care services or recoupment of residential care subsidy payments. The maximum penalty for an offence under the Aged Care Act 1997 is imprisonment for five years, a fine of up to 50,000 penalty units, or both (subsection 31A(2) of the Act). The maximum penalty for an offence under the Residential Care Subsidy Principles 1997 is a fine of up to 10,000 penalty units (subsection 14(2) of the Principles).