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. 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 44-16(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 by legislative instrument in respect of each supplement, the amount of the supplement, 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 increased maximum amount of TAS with effect from 20 September 2009 and revokes Determination ACA Ch. 3 No. 5/2009.
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 TAS disseminated via print and electronic media to approved providers.
Overview
The Aged Care Act 1997 establishes the framework for funding aged care services in Australia, with a particular focus on the provision of residential care to approved care recipients. To further refine these arrangements, the Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2009 was enacted to address the transitional needs arising from the new accommodation payment arrangements introduced on 20 March 2008. This legislation, enacted by the Australian Parliament, aims to ensure a smooth transition by providing a transitional accommodation supplement (TAS) to eligible post-reform residents entering care between 20 March 2008 and 19 September 2011. The policy objective of this determination is to maintain the integrity of the aged care funding system during a period of significant reform, thereby supporting approved providers in delivering quality care to the elderly population.
Scope and Application
The Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2009 (No. 2) applies to approved providers of residential aged care services under the Aged Care Act 1997. These providers are eligible to receive residential care subsidy payments for the care they provide to approved care recipients. Specifically, the Determination sets the increased maximum amount of the transitional accommodation supplement (TAS) which applies to certain residents who entered care between 20 March 2008 and 19 September 2011. The supplement is designed to ease the transition to new accommodation payment arrangements that commenced on 20 March 2008. The Determination revokes the previous TAS Determination ACA Ch. 3 No. 5/2009 and applies nationally across the Commonwealth of Australia. The amount of the supplement is determined by the Minister for Ageing using a formula based on the consumer price index, in accordance with policy that was subject to extensive consultation with the aged care industry. There are no stated exclusions or exemptions in this Determination, but it is noted that the supplement is applicable to specific residents within the stipulated timeframe.
Key Provisions
The main sections of this Determination (No. 2) under the Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2009 relate to the establishment and calculation of the transitional accommodation supplement (TAS). The primary focus is on setting the increased maximum amount of TAS effective from 20 September 2009 and the revocation of an earlier Determination (ACA Ch. 3 No. 5/2009). This Determination ensures that the new rates are implemented to support the aged care sector in the context of the new accommodation payment arrangements that were introduced on 20 March 2008. The TAS is designed to assist in the transition by providing a supplement for certain post-reform residents who enter care between 20 March 2008 and 19 September 2011 inclusive.
The Act imposes specific obligations on approved providers of residential aged care services. These obligations include ensuring that they are aware of and comply with the new TAS rates as set out in this Determination. Approved providers must also ensure that they meet the criteria for eligibility to receive the TAS for their residents. This involves accurately assessing and documenting the relevant circumstances of their residents to ensure that they qualify for the supplement. Additionally, approved providers are required to maintain records and provide any necessary information to the Department of Health and Ageing when requested.
Breaching the provisions of the Aged Care Act 1997 can result in significant consequences. While this particular Determination focuses on the financial supplement, any failure to comply with the Act’s broader requirements could lead to legal action. For instance, failure to accurately claim the TAS or misrepresentation of resident eligibility could be considered fraudulent activity. Such actions could result in financial penalties, legal proceedings, and potential exclusion from the aged care funding program. The Act does not specify maximum penalties in this context, but breaches of related provisions can lead to substantial fines and other enforcement actions under the broader administrative framework.