Aged Care (Residential Care Subsidy - Amount of Transitional Supplement) Determination 2012 (No. 1)

Overview

The Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2012 (No. 1) is an instrument enacted to set the amount of the transitional supplement for residential care subsidy under the Aged Care Act 1997, providing a legislative solution to the need for updating the rates in accordance with inflation and cost changes. The Aged Care Act 1997, enacted by the Australian Parliament, regulates and funds aged care services, allowing approved providers to receive residential care subsidy payments for the care they provide to approved recipients. The transitional supplement, an additional primary supplement, compensates aged care services for care recipients who could not pay an accommodation bond or charge due to the uncertified status of the residential care service at the time of entry or entry prior to the commencement of the Aged Care Act 1997. This Determination, made by the Minister for Mental Health and Ageing, aligns with the policy objective of ensuring that the rates of supplements are regularly updated to reflect changes in the cost of living and service provision.

Scope and Application

The Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2012 (No. 1) pertains to the Aged Care Act 1997, governing the regulation and funding of aged care services in Australia. Specifically, this Determination applies to approved providers who deliver residential aged care services and are eligible to receive residential care subsidy payments for the care provided to approved care recipients. This Determination sets the amount of the transitional supplement, which is a type of additional primary supplement, intended to compensate aged care services in relation to care recipients who entered care under certain conditions, such as when their residential care service was uncertified or before the Aged Care Act 1997 commenced. Notably, the transitional supplement does not apply to post-2008 reform residents. The Determination revokes the previous Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2011 (No. 2), and it has been indexed using a formula based on the Consumer Price Index, reflecting changes in non-labour costs of providers. The Determination is applicable nationally, aligning with the Commonwealth jurisdiction, and it is a legislative instrument under the Legislative Instruments Act 2003.

Key Provisions

The Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2012 (No. 1) sets out the amount of the transitional supplement for aged care services providers. Section 1 identifies the title of the Determination, while Section 2 indicates that it commences on 20 March 2012. Section 3 revokes the previous Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2011 (No. 2). Section 4 provides definitions for terms used in the Determination, and Section 5 specifies the amount of the transitional supplement, which has been increased using a formula based on the Consumer Price Index. The Determination imposes certain obligations and requirements on the parties it governs. Approved providers of residential aged care services are entitled to receive the transitional supplement payments in respect of care provided to approved care recipients under specific conditions. Notably, the supplement does not apply to post-2008 reform residents, ensuring that only those who entered care under certain circumstances prior to the 2008 reforms are eligible. This includes care recipients who entered uncertified services or before the commencement of the Aged Care Act 1997. The Act also outlines various offences and penalties for breaches. Although the Determination itself does not specify maximum penalties, it operates under the broader framework of the Aged Care Act 1997. This means that any non-compliance with the requirements for receiving the transitional supplement could result in penalties as stipulated by the overarching Act, which could encompass both civil and criminal consequences depending on the nature and severity of the breach. The Department of Health and Ageing has undertaken extensive consultation on the policy related to these supplements, including the increases implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008. Given that the current basis for indexation remains consistent, no further consultation has been deemed necessary specifically for this Determination. Information regarding the increase in the supplement amount will be disseminated to approved providers through electronic media to ensure they are kept informed about the changes.