EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Residential care subsidy – amount of transitional supplement)
Determination 2008
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(3) of the Act provides that the Minister may determine, by legislative instrument, the amount of additional primary supplements or the way in which the amount of the supplement is to be worked out.
Subsection 44-16(1) of the Act provides that the Residential Care Subsidy Principles 1997 may provide for additional primary supplements. Section 21.25C of the Residential Care Subsidy Principles 1997 provides for the eligibility for payment of the transitional supplement.
An aged care service is eligible for the payment of transitional supplement for each day in the payment period when residential care is provided to:
- a care recipient who, after 30 September 1997, enters a residential care service that was not certified on the day the care recipient entered the service; or
- a person who:
- on 30 September 1997 occupied a hostel place or a nursing home bed; and
- after that date continued to receive residential care from the service; and
- has been classified under Part 2.4 of the Act.
This determination sets the transitional supplement rate at $17.73 with effect from 20 March 2008. This is equivalent to the concessional resident supplement for services where more than 40% of the new residents to whom the service provides residential care (other than respite care) are supported, concessional or assisted residents. The transitional supplement will be indexed on 20 March and 20 September each year. This represents a change from current indexation arrangements whereby indexation has occurred on 1 July each year. The change is in line with the indexation arrangements for the new accommodation supplement.
This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Department of Health and Ageing undertook extensive consultation on the policy that is implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 which amends the Aged Care Act 1997. This Determination flows from these amendments.