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 2012 (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 2012 (No. 1) ‘the Determination’ is to set the increased maximum amount of TAS with effect from 20 March 2012. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2011 (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 indexed using a well established formula based on the Consumer Price Index as a measure of the movements in the non-labour costs of providers.
Statement of Compatibility with Human Rights
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 and does not engage any of the applicable rights or freedoms.
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. As the same basis is used currently for indexation, no further consultation has been 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.
This Determination commences on 20 March 2012.
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 2012 (No. 1) is an instrument enacted to address the need for updating the amount of the Transitional Accommodation Supplement (TAS) within the Aged Care Act 1997. This Act, enacted in 1997, governs the regulation and funding of aged care services, providing for residential care subsidy payments to approved providers for care given to approved recipients. The TAS, as stipulated in the Residential Care Subsidy Principles 1997, is intended to ease the transition of new accommodation payment arrangements introduced from 20 March 2008. This Determination, issued by the Minister for Mental Health and Ageing, increases the maximum amount of TAS effective from 20 March 2012, aligning with the indexed increase in the pensioner supplement, calculated via a formula based on the Consumer Price Index. The policy objective is to ensure that the supplement amounts reflect the changes in non-labour costs of providers, thereby maintaining the financial viability of aged care services.
Scope and Application
The Aged Care Act 1997 applies to approved providers who offer residential aged care services and the recipients of these services, ensuring they receive the necessary subsidies for the care provided. This Act governs the regulation and funding of aged care services, and it encompasses the determination of various supplements, including the Transitional Accommodation Supplement (TAS), which is designed to support the transition to new accommodation payment arrangements. The Act’s jurisdiction extends nationally across Australia, with specific legislative instruments such as the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 1) further detailing the application and calculation of these supplements. The Determination, which sets the increased maximum amount of TAS, is effective from 20 March 2012, and it supersedes the previous Determination from 2011. It is important to note that the amount of TAS is indexed based on the Consumer Price Index, reflecting changes in the non-labour costs of providers. This Determination ensures that the supplements are adjusted in line with inflation, thereby maintaining the relevance and effectiveness of the subsidy scheme.
Key Provisions
The main operative sections of the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 1) (the Determination) pertain to the adjustment of the maximum amount of the Transitional Accommodation Supplement (TAS) under section 44-16(3) of the Aged Care Act 1997 (the Act). The Determination sets the increased maximum amount of TAS effective from 20 March 2012, and it revokes the previous Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2011 (No. 2). The increase in the maximum amount of TAS is tied to the increase in the pensioner supplement, which is indexed using a well-established formula based on the Consumer Price Index as a measure of the movements in the non-labour costs of providers.
The Determination imposes several obligations on approved providers of residential aged care services under the Act. Approved providers must ensure they are aware of the new maximum amount of TAS as set out in the Determination, and they must comply with the updated rates when applying for residential care subsidy payments in respect of the care they provide to approved care recipients. Additionally, the Department of Health and Ageing has a responsibility to inform approved providers of the changes via electronic media.
Any failure by approved providers to adhere to the updated TAS rates may result in incorrect subsidy payments, which could lead to financial discrepancies or potential penalties. However, the Determination itself does not specify any explicit offences, penalties, or civil/criminal consequences for breach. The primary focus of the Determination is to ensure that the TAS is aligned with the indexation of the pensioner supplement, thereby maintaining the integrity of the subsidy payments system. The consequences of non-compliance would likely be addressed under the general provisions of the Act and related administrative processes, rather than through specific penalties outlined in the Determination.