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. 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
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. 2) (the Determination) is to set the increased maximum amount of TAS with effect from 20 September 2010. This Determination also revokes Aged Care (Residential care subsidy – amount of transitional accommodation supplement) Determination 2010 (No. 1).
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 increases in the consumer price index (CPI) as a measure of movements in the non-labour costs of providers.
Consultation
The Department of Health and Ageing 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 undertaken as part of the Review of the Conditional Adjustment Payment and is ongoing in relation to funding arrangements.
Indexation of the supplement uses a well established formula based on the CPI as a measure of the movements in the non-labour costs of providers. As this 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 disseminated via print and electronic media to approved providers.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2010 (No. 2), made under the Aged Care Act 1997, was introduced to address the need for periodic adjustments to the transitional accommodation supplement (TAS) to reflect changes in the cost of living and non-labour costs for aged care providers. This Determination was issued by the Minister for Ageing and serves to increase the maximum amount of TAS, aligning with the increase in the pensioner supplement as measured by the consumer price index (CPI). The primary policy objective behind this adjustment is to ensure that the financial support provided to aged care providers remains commensurate with the actual costs they incur, thereby maintaining the viability and quality of aged care services.
Extensive consultations were conducted by the Department of Health and Ageing to inform the policy decisions underpinning the TAS adjustments, ensuring that the legislative changes are both practical and reflective of current economic conditions. The Determination, which revokes its predecessor, aims to disseminate information about the supplement increase effectively to approved providers through various media channels, ensuring clarity and compliance with the updated rates.
Scope and Application
The Aged Care Act 1997 governs the funding of aged care services in Australia, applying to approved providers who deliver residential aged care services to approved care recipients. This Act is supplemented by the Residential Care Subsidy Principles 1997, which allow for additional primary supplements, including the transitional accommodation supplement (TAS). The TAS is specifically designed to support aged care providers in managing the transition to new accommodation payment arrangements that commenced on 20 March 2008. It is payable for certain post-reform residents who enter low-level care between 20 March 2008 and 19 September 2011. The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2010 (No. 2) establishes the amount of the TAS, with the amount indexed to the pensioner supplement, which is adjusted based on changes in the consumer price index. This Determination replaces the previous Determination (No. 1) and is applicable nationally, aligning with the Commonwealth’s role in regulating aged care funding.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2010 (No. 2) introduces changes to the maximum amount of the Transitional Accommodation Supplement (TAS) under the Aged Care Act 1997. Specifically, Section 44-16(3) of the Act allows the Minister to determine the amount of the supplement, and this Determination sets an increased maximum amount of TAS effective from 20 September 2010. This follows a policy decision to adjust the rates of supplements in line with increases in the consumer price index (CPI), which reflects changes in the non-labour costs of providers. This Determination also revokes the previous Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2010 (No. 1), aligning the TAS with the updated policy framework.
Under the Aged Care Act 1997, approved providers who offer residential aged care services can receive a residential care subsidy for the care they provide to approved care recipients. The Residential Care Subsidy Principles 1997 (the Principles) allow for additional primary supplements such as the TAS. The TAS is designed to support the transition to new accommodation payment arrangements introduced on 20 March 2008, by providing a supplement for certain post-2008 reform residents entering low-level care between 20 March 2008 and 19 September 2011. The purpose of this supplement is to ensure that the transition to new payment arrangements is smooth and manageable for both providers and residents.
Providers governed by this Act must adhere to the updated TAS amount as set out in the Determination. This includes ensuring they are aware of the increased maximum amount of TAS for a day, which has been adjusted in line with the pensioner supplement and CPI. Providers must also ensure that any claims for TAS are made in accordance with the updated rates, and that they maintain records and documentation that reflect the correct application of the supplement. Failure to comply with these requirements could result in disputes over subsidy payments and potential financial discrepancies.
The Determination does not explicitly list specific offences or penalties for non-compliance with the updated TAS rates. However, any breach of the Aged Care Act 1997 or the Residential Care Subsidy Principles 1997 could potentially lead to administrative actions or legal proceedings under the broader legislative framework. This could include fines or other penalties imposed by relevant authorities. It is important for providers to stay informed about the changes and ensure they are compliant with the updated Determination to avoid any adverse consequences.