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. 2)
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.
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 September 2009 at $18.54 and revokes Determination ACA Ch. 3 No. 6/2009.
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 transitional supplement will be disseminated via print and electronic media to approved providers.
Overview
The Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2009 (No. 2) was enacted in 2009 to address the need for a clear and updated specification of the transitional supplement under the Aged Care Act 1997. This determination was made by the Minister for Ageing and is intended to provide clarity and consistency in the subsidy payments to approved providers of residential aged care services. The policy objective, as outlined in the explanatory statement, is to ensure that the transitional supplement is set in a manner that reflects the changes brought about by the Aged Care Amendment (2008 Measures No. 1) Act 2008, and aligns with ongoing consultation and policy adjustments regarding aged care funding. This legislative instrument aims to maintain the integrity of the residential care subsidy payments by setting the amount of the transitional supplement at $18.54, effective from 20 September 2009, thereby superseding the previous determination ACA Ch. 3 No. 6/2009.
Scope and Application
The Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2009 applies to approved providers of residential aged care services who are eligible to receive residential care subsidy payments under the Aged Care Act 1997. This legislation, enacted by the Commonwealth of Australia, sets the amount of the transitional supplement at $18.54, effective from 20 September 2009, as authorised by the Act. The Determination revokes the previous Determination ACA Ch. 3 No. 6/2009 and is part of a broader policy framework that underwent extensive consultation with stakeholders, including the aged care industry, to ensure alignment with the objectives of the Aged Care Act 1997 and related instruments. The supplement amount is determined using an established formula based on the consumer price index, which was also subject to comprehensive consultation as part of the policy reforms implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008.
Key Provisions
The Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2009 (No. 2) establishes the specific amount of the transitional supplement, effective from 20 September 2009, at $18.54 per day. This supplement is intended to provide additional support to residential care recipients under the Aged Care Act 1997 (the Act). The determination also revokes the previous Determination ACA Ch. 3 No. 6/2009, indicating an update in the policy framework governing aged care subsidies (subsections 44-16(1) and (3)).
The Act requires approved providers of residential aged care services to be eligible for residential care subsidy payments for the care they provide to approved care recipients. These providers are subject to the Residential Care Subsidy Principles 1997, which may include additional primary supplements. The determination sets the transitional supplement amount, ensuring that providers receive this financial support in line with the established policy. This legislative instrument is a response to the need for updated subsidy rates, reflecting changes introduced by the Aged Care Amendment (2008 Measures No. 1) Act 2008 and amendments to the Principles.
Providers of residential aged care services must ensure they comply with the updated transitional supplement amount set out in the Determination. This involves accurately calculating and applying the $18.54 supplement per day in their billing and subsidy claims. Additionally, they must remain informed about any changes to the subsidy rates and ensure their records and practices reflect these updates to maintain compliance with the Act.
Breach of the requirements set out in the Aged Care Act 1997 and the Determination could lead to penalties. Although the specific penalties are not detailed in the text, breaches of aged care funding provisions can generally result in fines, suspension of subsidies, or other administrative sanctions. Non-compliance could also have broader implications for the provider's operations and their ability to deliver care services, impacting the care recipients they serve. The precise nature and extent of penalties would be determined according to the relevant provisions of the Act and any related regulations.