EXPLANATORY STATEMENT
Issued by the authority of the Assistant Minister for Social Services
Aged Care Act 1997
Aged Care (Residential Care Subsidy – Amount of Transitional Supplement)
Determination 2014 (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 2014 (No. 1) (the Determination) is to set the amount of the transitional supplement with effect from 20 March 2014. This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2013 (No. 2).
Consultation
Routine indexation of the supplement uses a well-established formula based on the consumer price index (CPI) as a measure of the movements in the non-labour costs of providers. As this is in accordance with policy upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this indexation.
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 2014.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Regulation Impact Statement
The Office of Best Practice Regulation (OBPR) has advised that no Regulation Impact Statement is required. (OBPR ID 11719)
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 2014 (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 Determination revokes and replaces Aged Care (Residential Care Subsidy – Amount of Transitional Supplement) Determination 2013 (No.2), and increases the amount of the transitional supplement payable to approved providers of residential aged care services in line with the changes to the consumer price index (CPI).
Human rights implications
The legislative instrument helps to ensure that the standard of care and services provided to recipients of residential aged care services is maintained and not unduly affected by the movements in the non-labour costs of providers.
The legislative instrument is compatible with the right to an adequate standard of living and the right to the enjoyment of the highest attainable standard of physical and mental health as contained in article 11(1) and article 12(1) of the International Covenant on Economic, Social and Cultural Rights, and article 25 and article 28 of the Convention on the Rights of Persons with Disabilities.
Conclusion
This Legislative Instrument is compatible with human rights as it promotes the human right to health and the right to an adequate standard of living.
Senator the Hon Mitch Fifield, Assistant Minister for Social Services