EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2011 (No. 1)
The Aged Care Act 1997 (the Act) provides for the regulation and 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 2011 (No. 1) (the Determination) is to set the increased maximum amount of TAS with effect from 20 March 2011. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2010 (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 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 electronic media to approved providers.
These Principles commence on 20 March 2011.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care Act 1997, enacted by the Commonwealth Parliament, aims to regulate and fund aged care services provided by approved residential care providers. In addressing a specific gap in the aged care funding model, the Act allows for the payment of subsidies to providers for the care they offer to approved recipients. The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2011 (No. 1), issued under the authority of the Minister for Mental Health and Ageing, seeks to adjust the amount of the Transitional Accommodation Supplement (TAS) in response to inflation, ensuring that the supplement remains effective in supporting providers during the transition to new accommodation payment arrangements introduced in 2008. This Determination, which revokes an earlier version from 2010, reflects increases in the pensioner supplement linked to the consumer price index. The policy objective is to maintain the supplement’s relevance and effectiveness in supporting residential care providers amidst rising non-labour costs.
Scope and Application
The Aged Care Act 1997, as supplemented by the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2011 (No. 1), governs the regulation and funding of aged care services in Australia. This legislation applies to approved providers who offer residential aged care services and who can receive residential care subsidy payments for the care provided to approved care recipients. The primary focus is on determining the amount of the transitional accommodation supplement (TAS) for certain residents entering low-level care between 20 March 2008 and 19 September 2011. This supplement aims to facilitate the transition to new accommodation payment arrangements introduced from 20 March 2008. The Determination itself sets the increased maximum amount of TAS from 20 March 2011, indexed according to changes in the consumer price index to reflect movements in non-labour costs of providers. The Determination revokes the previous Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2010 (No. 2). The application of the Act and the Determination is national, encompassing all Commonwealth jurisdictions, and it extends to any subordinate instruments that may further define or adjust the application of the Act's provisions.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2011 (No. 1) sets out the increased maximum amount of the Transitional Accommodation Supplement (TAS) (section 1). This Determination revokes the previous TAS Determination from 2010 (section 2). The purpose of the TAS is to facilitate the transition to new accommodation payment arrangements, which commenced on 20 March 2008 (section 3). This is achieved by providing payments to aged care providers in respect of certain post-2008 reform residents who enter low-level care between 20 March 2008 and 19 September 2011 inclusive (section 3).
Approved providers who offer residential aged care services and are approved under the Aged Care Act 1997 are eligible to receive the residential care subsidy, including the TAS (section 44-16(1) and (3) of the Act). The Determination outlines the increased maximum amount of the TAS, effective from 20 March 2011 (section 4). The increase in the maximum amount of TAS is in line with the increase in the pensioner supplement, which is indexed according to the Consumer Price Index (CPI) (section 4). The CPI is used as a measure of movements in the non-labour costs of providers (section 4).
The Determination imposes certain obligations on the parties it governs, primarily on the approved providers. They are required to provide low-level care to eligible residents within the specified timeframe and adhere to the new accommodation payment arrangements as set out in the Aged Care Act 1997 (section 4). They must also ensure that they meet the criteria for receiving the residential care subsidy, including the TAS (section 44-16(1) and (3) of the Act).
There are no specific offences or penalties outlined in the Determination itself. However, breaches of the Aged Care Act 1997 or failure to comply with the requirements for receiving the residential care subsidy could result in penalties under the Act. These penalties may include fines or other sanctions, as determined by the relevant authorities (section 44-16(1) and (3) of the Act). The maximum penalties for breaches of the Act are not specified in the Determination but can be found within the Act itself.