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 2009 (No. 1)
(ACA Ch. 3 No. 6/2009)
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.
This Determination sets the amount of the transitional supplement with effect from 20 March 2009.
The Determination revokes the previously made Determination.
This Determination differs from the previously made Determination in that the amount of the transitional supplement for a day has been increased in accordance with increases in the consumer price index published by the Australian Statistician.
This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Department of Health and Ageing (the Department) undertook extensive consultation on the policy, which included policy on increases in the rates of supplements, that was implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 and related amendments to the Principles and other instruments made under the Act.
Further consultation was undertaken by the Department on aged care funding arrangements as part of the Review of the Conditional Adjustment Payment and there is ongoing consultation with the aged care industry on funding arrangements.
As the indexation of the supplement uses a well established formula based on the consumer price index, and is in accordance with policy 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 sent to all approved providers by facsimile and will be available to the public on the Department’s website.
Overview
The Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2009 (No. 1) was introduced to address the need for adjustments to the transitional supplement payments made to approved providers of residential aged care services under the Aged Care Act 1997. This legislation, enacted by the Minister for Ageing, aims to ensure that the financial support provided to these providers remains aligned with economic changes, specifically through adjustments based on the consumer price index. The policy objective is to maintain the purchasing power of these subsidies in light of inflation, thereby supporting the sustainability and effectiveness of residential care services for the elderly. The determination reflects the outcome of extensive consultations with the aged care industry and is designed to seamlessly integrate with the broader aged care funding framework.
Scope and Application
The Aged Care Act 1997 applies to approved providers who deliver residential aged care services and are eligible to receive residential care subsidy payments for the care they provide to approved care recipients. The Act also pertains to care recipients who have entered a residential care service after 30 September 1997 or who were already occupying a hostel place or nursing home bed on that date and continued to receive residential care from the service, and have been classified under Part 2.4 of the Act. This Act operates within the Commonwealth jurisdiction and its application is extended or restricted through legislative instruments such as the Residential Care Subsidy Principles 1997 and the Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2009. The latter sets the amount of the transitional supplement and indexes it according to the consumer price index, reflecting policy decisions that have undergone extensive consultation with the aged care industry. Notably, the determination does not specify exclusions or thresholds beyond those outlined in the Act and related principles, and it revokes the previous determination concerning the transitional supplement.
Key Provisions
The main operative sections of the Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2009 (No. 1) establish the amount of the transitional supplement for eligible aged care services, effective from 20 March 2009. This supplement applies to residential care provided under specific conditions, such as when a care recipient entered a residential care service after 30 September 1997, which was not certified at the time of entry, or when a person continued to receive care from a service after 30 September 1997 and was classified under the Aged Care Act 1997 (sections 21.25C of the Residential Care Subsidy Principles 1997). This Determination replaces the previously made one and adjusts the supplement amount in line with the consumer price index published by the Australian Statistician.
The Act imposes several obligations on approved providers of residential aged care services, ensuring they meet the eligibility criteria for the transitional supplement. These include verifying the care recipient's entry date and the certification status of the service at that time, as well as confirming that the care recipient was classified under Part 2.4 of the Act if they were already receiving care on 30 September 1997. Approved providers must accurately document these details to substantiate their claims for the supplement. The Department of Health and Ageing plays a crucial role in overseeing these processes and ensuring compliance through its consultations and policy reviews.
Failure to comply with the requirements set forth in the Act may result in penalties. The exact nature and extent of these penalties are not explicitly detailed within the Determination itself, but they generally encompass both civil and criminal consequences. Civil penalties might include fines or other monetary sanctions, while criminal penalties could involve imprisonment. The maximum penalties would depend on the specific breach and the applicable laws under which the Act operates. The Determination, as a legislative instrument, ensures that the supplement amount is appropriately indexed, maintaining fairness and consistency in funding arrangements for aged care services.