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 2010 (No. 1)
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.
The purpose of the Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2010 (No. 1) (the Determination) is to set the amount of the transitional supplement with effect from 20 March 2010. This Determination also revokes Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2009 (No.2).
The difference between the Determinations is that the amount of transitional supplement for a day has been increased in accordance with increases in the consumer price index published by the Australian Statistician.
The 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 instruments.
Further consultation was undertaken as part of the Review of the Conditional Adjustment Payment and is ongoing in relation to 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 Act 1997 was enacted to provide a comprehensive framework for the funding and regulation of aged care services in Australia, addressing the growing need for quality care for the elderly population. This Act established the mechanisms for the provision of residential care subsidy payments to approved providers who offer care services to approved recipients. One of the key amendments to this Act was introduced through the Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2010 (No. 1), which aimed to adjust the amount of the transitional supplement provided to residential aged care providers. This adjustment was in response to the increases in the consumer price index, ensuring that the subsidy remains relevant and effective in meeting the financial needs of aged care services. The determination was made under the authority of the Minister for Ageing and was intended to maintain the purchasing power of the subsidy, reflecting the actual cost of living increases. Extensive consultations were conducted by the Department of Health and Ageing to inform this policy, ensuring it aligns with broader aged care funding strategies.
Scope and Application
The Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2010 (No. 1) applies to the residential aged care sector in Australia, specifically to approved providers who are eligible to receive residential care subsidy payments for the care they provide to approved recipients, as outlined in the Aged Care Act 1997. The Determination sets the amount of the transitional supplement, which has been adjusted in accordance with increases in the consumer price index. This legislative instrument replaces the previous Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2009 (No.2). The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003 and extends the application of the Act through subordinate instruments. There are no stated exclusions or thresholds in this Determination, but it is subject to ongoing consultation and review as part of the broader policy framework.
Key Provisions
The main operative sections of the Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2010 (No. 1) (the Determination) are those that set the amount of the transitional supplement and revoke the previous Determination (ss 1-2). Under section 1 of the Determination, the amount of the transitional supplement for a day is set, and this amount reflects increases in the consumer price index. Section 2 revokes the Aged Care (Residential care subsidy – amount of transitional supplement) Determination 2009 (No. 2), ensuring that the new Determination is the current governing instrument.
The Determination imposes specific obligations on approved providers of residential aged care services. These providers must be aware of the updated amount of the transitional supplement as set out in the Determination and ensure that their claims for residential care subsidy payments are based on this updated amount. The Department of Health and Ageing has committed to disseminating information about these changes to approved providers through various media channels to ensure compliance.
In terms of consequences for breach, the Determination itself does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance. However, under the Aged Care Act 1997, non-compliance with the requirements for receiving subsidy payments could result in penalties. For instance, section 113 of the Aged Care Act 1997 provides that a person who contravenes a provision of the Act may be liable to a civil penalty. The maximum penalty for a corporation is $126,000, and for an individual, it is $25,200. Furthermore, in cases of serious misconduct or fraud, the Aged Care Act 1997 also allows for criminal penalties, which could include fines and imprisonment.