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
- 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.
Overview
The Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2008 was enacted to address the issue of providing transitional support to residential care services under the Aged Care Act 1997. This legislation was introduced by the Australian Parliament to set the rate for the transitional supplement that is payable to approved providers of residential aged care services. The primary objective of this determination, as outlined in the explanatory statement, is to ensure that residential care services receive adequate support during the transition period when care recipients enter services that were not certified on the date of entry, or for those who were already receiving care on 30 September 1997 and continued to receive care thereafter. The transitional supplement rate was set at $17.73 per day, effective from 20 March 2008, and is indexed on 20 March and 20 September each year, aligning with the indexation arrangements for the new accommodation supplement.
Scope and Application
The Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2008 applies to approved providers of residential aged care services, who are eligible to receive residential care subsidy payments for the care they provide to approved care recipients under the Aged Care Act 1997. The determination sets the rate of the transitional supplement, which is paid for each day of residential care provided to specific care recipients, such as those who entered the residential care service after 30 September 1997 or those who were already in a hostel place or a nursing home bed on that date and continued to receive care thereafter. This supplement is indexed annually on 20 March and 20 September, aligning with the new accommodation supplement's indexation schedule. The legislation is applicable across the Commonwealth and is a legislative instrument under the Legislative Instruments Act 2003. The transitional supplement rate, as established by this determination, was influenced by extensive consultation undertaken by the Department of Health and Ageing and is a result of amendments made by the Aged Care Amendment (2008 Measures No. 1) Act 2008.
Key Provisions
The Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2008 (the Determination) sets out the rate for the transitional supplement under the Aged Care Act 1997 (the Act). Section 44-16(3) of the Act empowers the Minister to 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. The Determination establishes the transitional supplement rate at $17.73 per day, effective from 20 March 2008, for approved providers who offer residential care to eligible care recipients. This rate is equivalent to the concessional resident supplement for services where more than 40% of new residents (excluding respite care) are supported, concessional, or assisted residents. Furthermore, the Determination introduces a change in the indexation schedule for the transitional supplement, aligning it with the new accommodation supplement. Instead of the previous indexation on 1 July each year, the Determination mandates indexation on 20 March and 20 September each year.
The Determination imposes obligations on approved providers who offer residential care services to eligible care recipients. Approved providers must ensure that they meet the criteria for the transitional supplement, such as providing care to individuals who entered a residential care service after 30 September 1997 and were not certified on the day of entry, or to individuals who occupied a hostel place or nursing home bed on 30 September 1997 and continued to receive care after that date and have been classified under Part 2.4 of the Act. Approved providers must also ensure that they submit accurate claims for the transitional supplement and maintain appropriate records to support their claims. Failure to comply with these obligations may result in the denial of the transitional supplement or the recovery of any overpaid amounts.
The Determination does not explicitly outline specific offences, penalties, or consequences for breach. However, the Act and associated regulations may impose civil or criminal penalties for non-compliance with the Act's requirements or for the fraudulent claiming of subsidies. For instance, under section 116 of the Act, a person who contravenes a provision of the Act or associated regulations may be liable to a civil penalty not exceeding $22,200 for each contravention. In more serious cases, criminal penalties may apply, including fines of up to $277,500 for individuals and $1,387,500 for bodies corporate, along with potential imprisonment for up to five years. Furthermore, the Determination's provisions are subject to the oversight of the Department of Health and Ageing, which may take enforcement action against non-compliant approved providers.