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. 2)
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 pays 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. 2) ‘the Determination’ is to set the increased maximum amount of TAS with effect from 20 September 2012. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (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 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.
Consultation
Indexation of the supplement is in accordance with the general policy for indexation of aged care payments 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.
This Determination commences on 20 September 2012.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care Act 1997 governs the regulation and funding of aged care services in Australia, including the provision of residential care subsidies to approved providers for the care they deliver to approved recipients. As part of this framework, the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 2) was introduced to address the need for the indexation of the Transitional Accommodation Supplement (TAS). The purpose of this Determination is to increase the maximum amount of the TAS with effect from 20 September 2012, aligning it with the increase in the pensioner supplement, which is indexed using a formula based on the Consumer Price Index. This legislative instrument aims to ensure that the TAS reflects the movement in the non-labour costs of providers, thereby maintaining the financial viability of aged care services. The Determination revokes its predecessor, the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 1), and was developed in accordance with the general policy for the indexation of aged care payments, following extensive consultation.
Scope and Application
The Aged Care Act 1997 applies to approved providers who deliver residential aged care services and the recipients of these services, providing a framework for the regulation and funding of aged care services within Australia. Specifically, it governs the eligibility and payments of residential care subsidies to these providers for the care they offer to approved care recipients. The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 2) further delineates the amount of the transitional accommodation supplement (TAS), which is a type of additional primary supplement under the Residential Care Subsidy Principles 1997. The TAS is designed to ease the transition to new accommodation payment arrangements for certain residents entering low-level care between 20 March 2008 and 19 September 2011. The Determination, which came into effect on 20 September 2012, increases the maximum amount of TAS in line with the indexed pensioner supplement, as determined by the Consumer Price Index. The Determination revokes its predecessor, the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 1), reflecting the updated supplement amount.
Key Provisions
The main operative sections of the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 2) include the provision that sets the increased maximum amount of the Transitional Accommodation Supplement (TAS) effective from 20 September 2012. This determination follows the increase in the pensioner supplement, which is indexed using a formula based on the Consumer Price Index, reflecting changes in the non-labour costs of providers. Section 44-16(3) of the Aged Care Act 1997 allows the Minister to determine the amount of the supplement by legislative instrument, and this determination exercises that power by setting a new maximum amount for TAS. Additionally, this determination revokes the previous Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 1), ensuring that the most current information is applied.
The obligations and requirements imposed by the Aged Care Act 1997 and the associated Principles and Determinations primarily concern approved providers who are eligible to receive residential care subsidy payments. These providers must ensure that they meet the criteria set out for the payment of TAS, which includes providing care to certain post-2008 reform residents entering low-level care between 20 March 2008 and 19 September 2011. The Act and Determinations require that approved providers adhere to the specified conditions to be eligible for the subsidy, including the new maximum amount for TAS set out in the 2012 Determination. Providers must also be aware of the revocation of the earlier Determination and ensure they are operating under the updated provisions.
There are no specific offences, penalties, or civil/criminal consequences detailed in the Determination itself. However, any failure to comply with the provisions of the Aged Care Act 1997 and the Residential Care Subsidy Principles 1997 could result in broader consequences under the Act. These might include the withholding of subsidy payments or other regulatory actions. The Determination ensures that the amount of TAS is accurately indexed, and failure to adhere to these updated amounts could potentially lead to disputes or investigations by the relevant authorities. The Determination aims to maintain transparency and fairness in the subsidy payments system, ensuring that providers are correctly compensated for the care they provide under the specified conditions.