EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Aged Care (Residential Care Subsidy – Amount of Transitional Supplement)
Determination 2013 (No. 1)
The Aged Care Act 1997 (the Act) provides for the regulation and 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.
Section 21.25C of the Principles provides for the transitional supplement which is a type of additional primary supplement. This section also sets out the circumstances in which transitional supplement is payable, including that it does not apply to post-2008 reform residents.
The purpose of the transitional supplement is to compensate aged care services in relation to care recipients who could not pay an accommodation bond or accommodation charge as the residential care service they entered was uncertified at the time they entered care, or where the care recipient entered care prior to the commencement of the Aged Care Act 1997.
The purpose of the Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2013 (No. 1) (the Determination) is to set the amount of the transitional supplement with effect from 20 March 2013. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2012 (No. 2).
The difference between the Determinations is that the amount of transitional supplement for a day has been indexed using a well established formula based on the Consumer Price Index as a measure of the movements in the non-labour costs of providers.
Consultation
Indexation of the supplement is in accordance with the general policy for indexation of aged care payments 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 disseminated via electronic media to approved providers.
This Determination commences on 20 March 2013.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2013 (No. 1)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of Legislative Instrument
The purpose of the Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2013 (No. 1) (the Determination) is to set the amount of the transitional supplement with effect from 20 March 2013. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2012 (No.2).
Human rights implications
This Legislative Instrument promotes the human right to health contained in article 12 of the International Covenant on Economic Social and Cultural Rights. The legislative instrument engages the right of everyone to the enjoyment of the highest attainable standard of physical and mental health by ensuring that the amount of the transitional supplement payable to approved providers of residential aged care services is increased in line with the increase in the non-labour costs of providers. This helps to ensure that the standard of care and services provided to recipients of residential aged care services is maintained.
Conclusion
This Legislative Instrument is compatible with human rights as it promotes the human right to health.
The Hon Mark Butler MP, Minister for Mental Health and Ageing
Overview
The Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2013 (No. 1) was enacted by the Commonwealth Parliament to address the issue of indexation of the transitional supplement for residential care services provided under the Aged Care Act 1997. This determination was introduced to ensure that the amount of the transitional supplement payable to approved providers of residential aged care services is adjusted in line with the increase in the non-labour costs of providers. This adjustment is critical for maintaining the standard of care and services provided to recipients of residential aged care services. The policy objective behind this legislative instrument is to uphold the human right to health by ensuring that the quality of care remains consistent despite inflationary pressures.
The determination, which revokes the Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2012 (No. 2), sets the amount of the transitional supplement effective from 20 March 2013. The indexation formula used is based on the Consumer Price Index, reflecting movements in the non-labour costs of providers. Although specific consultation on this instrument was not conducted, the general policy for indexation of aged care payments was developed through extensive consultation. Information regarding the increase in the amount of the supplement will be communicated to approved providers via electronic media. This legislative instrument is compatible with human rights, particularly the right to health as outlined in article 12 of the International Covenant on Economic, Social and Cultural Rights, by ensuring that the highest attainable standard of physical and mental health is maintained for aged care recipients.
Scope and Application
The Aged Care Act 1997, as supplemented by the Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2013 (No. 1), 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. This legislation primarily concerns those care recipients who entered into care prior to the commencement of the Aged Care Act 1997 or when the residential care service they entered was uncertified, thereby unable to pay an accommodation bond or charge. The Act and its Determinations extend across the Commonwealth of Australia, impacting the provision and funding of residential aged care services nationwide. Notably, the legislation excludes post-2008 reform residents from receiving the transitional supplement. The Act's scope is further refined through subordinate instruments, such as the Determination, which specifies the indexed amount of the transitional supplement to reflect changes in non-labour costs, thereby ensuring the maintenance of care standards.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2013 (No. 1) sets the amount of the transitional supplement, which is a type of additional primary supplement under the Aged Care Act 1997 (the Act). Section 21.25C of the Residential Care Subsidy Principles 1997 (the Principles) outlines the circumstances in which this supplement is payable, excluding post-2008 reform residents (subsection 44-16(1) and (3) of the Act). This supplement compensates aged care services for care recipients who could not pay an accommodation bond or charge due to their residential care service being uncertified at the time of entry or entering care before the Aged Care Act 1997 commenced. The Determination specifies the indexed amount of the supplement effective from 20 March 2013, replacing the Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2012 (No. 2). The indexation follows a well-established formula based on the Consumer Price Index, reflecting movements in the non-labour costs of providers.
Under this Determination, approved providers of residential aged care services are required to comply with the specified amount of the transitional supplement, which is adjusted annually to reflect changes in non-labour costs. Approved providers must ensure that their billing and claims for the supplement align with the rates set out in the Determination. Additionally, the Determination mandates that the information about the increase in the amount of the supplement be disseminated via electronic media to all relevant parties. The Determination also revokes the previous Determination, making it imperative for approved providers to update their records and billing systems accordingly.
Breaches of the Determination could result in civil and criminal consequences. Approved providers who fail to comply with the specified supplement rates may face financial penalties or legal action. The Act and associated regulations provide for enforcement mechanisms to ensure compliance, including the ability to audit and review claims for the supplement. In cases of non-compliance, penalties can include fines and other legal sanctions as outlined in the Aged Care Act 1997 and related legislation. The exact penalties are not detailed in the Determination but can be found in the primary Act and relevant regulations.