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 (No. 2)
(ACA.Ch. 3 No. 27/2008)
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(1) of the Act provides that the Residential Care Subsidy Principles 1997 (the Principles) may provide for additional primary supplements. Section 21.25C of the Principles provides for 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 (other than respite care) is provided to:
- a care recipient who, after 30 September 1997, entered a residential care service that was not certified on the day the care recipient entered the service; or
- 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.
Subsection 44-16(3) of the Act provides that the Minister may determine, by legislative instrument, the amount of each additional primary supplements or the way in which the amount of the supplement is to be worked out.
The Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2008 (No. 2) (the Determination) sets the transitional supplement rate at $18.23 with effect from 20 September 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 is indexed on 20 March and 20 September each year in line with the indexation arrangements for the accommodation supplement.
The Determination revokes and replaces the Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2008 (the previous Determination).
The Determination contains a minor change to the previous Determination in that the amount of the transitional supplement for each day in the payment period is increased from $17.73 to $18.23.
This Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
As the indexation of this supplement uses a well established formula for indexation, no specific consultation with industry was undertaken with respect to this instrument.
Overview
The Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2008 (No. 2) was enacted to set the rate of the transitional supplement for residential aged care services provided under the Aged Care Act 1997. This legislation was introduced to address the need for a specific, indexed rate for the transitional supplement to ensure that residential care providers are appropriately compensated for the care they provide to certain categories of care recipients. The determination was made by the Minister for Ageing under the authority granted by the Aged Care Act 1997, and it aims to align the transitional supplement with the broader indexation arrangements for the accommodation supplement. The policy objective behind this Determination is to provide a transparent and consistent framework for calculating the transitional supplement, ensuring that it reflects changes in economic conditions over time.
Scope and Application
The Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2008 (No. 2) applies to approved providers who offer residential aged care services under the Aged Care Act 1997 and who are eligible for residential care subsidy payments for the care they provide to approved care recipients. This applies to those who provide residential care to specific care recipients, namely those who entered a residential care service after 30 September 1997 that was not certified on the day of entry, or those who were already occupying a hostel place or nursing home bed as of 30 September 1997 and continued to receive residential care from the same service, and who have been classified under Part 2.4 of the Act. The Determination sets the rate of the transitional supplement at $18.23 per day for services where more than 40% of new residents are supported, concessional, or assisted residents. The amount is indexed twice yearly in line with the indexation arrangements for the accommodation supplement. This instrument, which is a legislative instrument under the Legislative Instruments Act 2003, revokes and replaces the previous Determination from 2008 and adjusts the rate of the supplement from $17.73 to $18.23.
Key Provisions
The Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2008 (No. 2) (the Determination) provides a clear framework for the calculation of the transitional supplement under the Aged Care Act 1997. Specifically, section 3 of the Determination establishes the rate of the transitional supplement at $18.23 per day for each care recipient eligible under the criteria specified in the Act. This rate applies to residential care services provided from 20 September 2008 onwards, and it replaces the previous rate of $17.73 set by the Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2008. The transitional supplement is designed to support residential care services for certain care recipients who entered the service after a specific date or who were already in the service on a particular date and continued to receive care thereafter.
Under the Aged Care Act 1997, approved providers of residential aged care services who meet the eligibility criteria can receive this subsidy. These providers must ensure that the care they provide to approved care recipients aligns with the conditions set out in the Determination. This includes verifying that the care recipients meet the specified criteria for transitional supplement eligibility, such as entering the service after a certain date or continuing to receive care from the service post a specified date. Furthermore, providers need to keep accurate records and documentation to substantiate their claims for the subsidy, ensuring compliance with the requirements set forth in the Act and the Determination.
Failure to comply with the provisions of the Aged Care Act 1997 or the Determination can result in various consequences. For instance, if an approved provider submits false or misleading information to claim the transitional supplement, they may be subject to penalties. Under section 126 of the Act, the Minister may impose financial penalties for providing false or misleading information, which could amount to significant fines. Additionally, repeated or serious non-compliance could lead to more severe consequences, including the potential for the provider’s accreditation to be reviewed or revoked, thereby affecting their ability to operate as a residential aged care service provider. It is crucial for providers to adhere to the statutory requirements to avoid these repercussions.