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 2013 (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 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 2013 (No. 1) (the Determination) is to set the increased maximum amount of TAS with effect from 20 March 2013. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (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.
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 March 2013.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2013 (No. 1)
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.
Overview of Legislative Instrument
The purpose of the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2013 (No. 1) (the Determination) is to set the increased maximum amount of TAS with effect from 20 March 2013. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 2).
Human Rights Implications
This Legislative Instrument promotes the human right to health contained in article 12 of the International Covenant on Economic Social and Cultural Rights. The legislative instrument engages the right of everyone to the enjoyment of the highest attainable standard of physical and mental health by ensuring that the amount of the transitional accommodation supplement payable to approved providers of residential aged care services is increased in line with the increase in the non-labour costs of providers. This helps to ensure that the standard of care and services provided to recipients of residential aged care services is maintained.
Conclusion
This Legislative Instrument is compatible with human rights as it promotes the human right to health.
The Hon Mark Butler MP, Minister for Mental Health and Ageing
Overview
The Aged Care Act 1997 provides a framework for the regulation and funding of aged care services in Australia, including the provision of residential care subsidies to approved providers. The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2013 (No. 1) was enacted to address the need for an updated maximum amount of the Transitional Accommodation Supplement (TAS), a type of additional primary supplement, in light of the increased non-labour costs faced by providers. This Determination, issued under the authority of the Minister for Mental Health and Ageing, is intended to ensure that the amount of TAS is indexed in accordance with the pensioner supplement, reflecting changes in the Consumer Price Index. This legislative instrument revokes the previous Determination from 2012 and is designed to maintain the standard of care provided to recipients of residential aged care services by aligning the supplement with the rising costs faced by providers.
The Determination aims to promote the human right to health by ensuring that the increased TAS amount helps maintain the quality of care provided to eligible residents. The Determination is compatible with human rights as recognised in international instruments, particularly the International Covenant on Economic, Social and Cultural Rights, by facilitating the highest attainable standard of physical and mental health for aged care recipients. The Determination is a legislative instrument under the Legislative Instruments Act 2003 and commenced on 20 March 2013.
Scope and Application
The Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2013 (No. 1) pertains to the regulation and funding of aged care services under the Aged Care Act 1997. It applies to approved providers who deliver residential aged care services and the approved care recipients they service, targeting the adjustment of the transitional accommodation supplement (TAS) payable to these providers. The Determination is applicable nationwide, as it is a Commonwealth instrument. The Determination excludes any residents entering low-level care outside the specified period of 20 March 2008 to 19 September 2011 and any providers not approved under the Act. The supplement is indexed in accordance with the pensioner supplement, reflecting increases in the Consumer Price Index to account for non-labour costs. The Determination revokes the previous Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 2), effective from 20 March 2013. This legislative instrument is compatible with human rights, particularly the right to health, by ensuring that the supplement amount is adjusted to maintain the standard of care for aged care recipients.
Key Provisions
The main operative sections of the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2013 (No. 1) are sections that set the increased maximum amount of the Transitional Accommodation Supplement (TAS) effective from 20 March 2013 and revoke the Aged Care (Residential Care Subsidy – Amount of Transitional Accommodation Supplement) Determination 2012 (No. 2) (sections 3 and 4). This determination was made under the Aged Care Act 1997, specifically under subsection 44-16(3), which allows the Minister to determine the amount of the supplement by legislative instrument. The purpose of these sections is to increase the maximum amount of TAS in line with the increase in the pensioner supplement, which is indexed using the Consumer Price Index.
The obligations and requirements imposed by the Act on parties, particularly approved providers of residential aged care services, include the need to comply with the updated TAS amounts as stipulated in the Determination. Approved providers must ensure that they meet the eligibility criteria for TAS, which is to provide care to certain post-2008 reform residents who enter low-level care between 20 March 2008 and 19 September 2011 inclusive. The Act also requires approved providers to submit accurate claims for the subsidy and maintain proper records to substantiate these claims. Additionally, the Act mandates that the Minister must disseminate information about the increase in TAS to approved providers via electronic media.
The Determination includes provisions for offences, penalties, or civil/criminal consequences for breach, though the specific penalties are not detailed in the explanatory statement. Generally, under the Aged Care Act 1997, breaches of the requirements to provide accurate claims and maintain proper records can lead to penalties, which may include fines or other sanctions. The Act also allows for legal actions to be taken against providers who fail to comply with the subsidy regulations. The exact penalties would depend on the nature and severity of the breach, and they would be in line with the penalties provided under the overarching Aged Care Act 1997.