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 2010 (No. 1)
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
low-level care (for which the resident is eligible to pay an accommodation bond) between 20 March 2008 and 19 September 2011 inclusive.
The purpose of the Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2010 (No. 1) (the Determination) is to set the increased maximum amount of TAS with effect from 20 March 2010. This Determination also revokes Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2009 (No. 2).
The difference between the Determinations is that 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.
The 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 instruments.
Further consultation was also undertaken as part of the Review of the Conditional Adjustment Payment and is ongoing in relation to 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, enacted by the Parliament of Australia, was established to provide a legislative framework for the funding and provision of aged care services in Australia. The Act addresses the need for a structured system to support the elderly in accessing necessary residential care services. The policy objective of the Act is to ensure that approved providers can receive residential care subsidy payments for the care they provide to approved recipients. As part of this framework, the Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2010 (No. 1) was introduced to address the transitional needs of certain residents entering low-level care following the introduction of new accommodation payment arrangements in 2008. The Determination aimed to smooth the transition by setting an increased maximum amount of the transitional accommodation supplement, aligned with the consumer price index, to ensure fair and updated compensation for approved providers.
Scope and Application
The Aged Care Act 1997 governs the funding of aged care services in Australia, encompassing entities approved to provide residential aged care services (approved providers) who can receive residential care subsidy payments for the care they provide to approved care recipients. The Act allows for additional primary supplements, such as the transitional accommodation supplement (TAS), to be determined by the Minister through legislative instruments. The Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2010 (No. 1) adjusts the maximum amount of TAS based on the increase in the pensioner supplement, which is indexed to the consumer price index. This Determination applies nationally, affecting approved providers who are eligible to receive TAS for certain residents entering low-level care between 20 March 2008 and 19 September 2011. The Determination revokes its 2009 counterpart and is part of broader policy measures that underwent extensive consultation, ensuring alignment with established funding arrangements and policy objectives.
Key Provisions
The Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2010 (No. 1) is a legislative instrument that sets the increased maximum amount of the Transitional Accommodation Supplement (TAS) from 20 March 2010, replacing the Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2009 (No. 2). This Determination aligns the maximum amount of TAS with the increase in the pensioner supplement, which is itself being increased according to the Consumer Price Index (CPI) published by the Australian Statistician. This change aims to ensure that the supplement keeps pace with inflation, thereby maintaining its value and effectiveness in supporting residential aged care providers.
The obligations under this Determination primarily concern approved providers of residential aged care services, who must ensure they are aware of and compliant with the updated TAS amounts for eligible residents. Approved providers must apply the correct TAS amount for residents who entered low-level care between 20 March 2008 and 19 September 2011. It is crucial for these providers to keep accurate records and ensure that the correct subsidy is applied in accordance with the Determination. Failure to comply with these requirements may result in administrative and financial repercussions.
While the Determination itself does not specify offences, penalties, or consequences for non-compliance, the overarching Aged Care Act 1997 and related regulations do provide a framework for enforcement. Under the Act, breaches of subsidy requirements can lead to a range of civil and criminal penalties. For instance, civil penalties can include fines and reimbursement of wrongly paid subsidies, while criminal penalties can include fines and imprisonment for serious or repeated breaches. The specifics of penalties would be determined based on the nature and severity of the breach, in line with other provisions of the Aged Care Act 1997.