Aged Care (Residential care subsidy - amount of viability supplement) Determination 2009 (No. 2)

Administered by Department of Health, Disability and Ageing

Legislation au F2009L04655 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

 

Issued by the authority of the Minister for Ageing

 

Aged Care Act 1997

 

Determination under Subsection 44-29(8)

Aged Care (Residential care subsidy – amount of viability 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 can be eligible to receive residential care subsidy payments in respect of the care they provide to approved care recipients. 

 

The residential care subsidy which is payable in a particular case includes a basic amount and can also include various supplements, which are intended to deal with particular circumstances.  One such supplement is the viability supplement, which is available to eligible rural and remote providers of aged care services in recognition of the particular difficulties faced by such services as a result of their isolation, small size, characteristics of the majority of their residents, and consequentially higher cost structures.  The viability supplement primarily benefits small services operating in rural, remote and isolated areas.

 

Subsection 44-29(8) of the Act provides that the viability supplement for a particular day is the amount determined by the Minister by legislative instrument or worked out in accordance with a method determined by the Minister by legislative instrument.  Subsection 44-29(9) of the Act provides that the Minister may determine different amounts or methods based upon certain matters, including the number of places in services, the degree of isolation of the services, and any other matters determined by the Minister by legislative instrument.

 

In essence, there are three viability supplement schemes – the 1997 scheme (which was put in place when the Act commenced operation); a modified scheme which was put in place in 2001; and the current scheme which commenced operation on 1 January 2005 – which run in parallel.  Each scheme has its own criteria for payment and each pays different amounts of viability supplement, depending on the circumstances of the residential care service.  For example, the 2005 scheme provides increased assistance to the more rural and remote residential care services.

 

This Determination is made pursuant to section 44-29(8) of the Act, which sets the amount of the viability supplement which is payable to services determined by the Secretary to be eligible.  Details of this Determination are set out in the Attachment.

 

This Determination reflects the 2009-10 Budget Measure Measures to Support Older Australians – Aged care viability supplements increase - which provided $14.8 million over two years to increase the viability supplement paid to eligible aged care providers in regional, rural and remote areas.

 

The increase in the Determination is to the 2005 scheme – the current scheme.  This measure does not result in a reduction in payment rates to the 1997 or 2001 schemes. If at any point an aged care provider participating in the 1997 or 2001 schemes would receive a higher supplement under the 2005 scheme, it will be transferred to the 2005 scheme.

 


Consultation

As the increase of the supplement is in accordance with the 2009-10 Budget Measure Measures to Support Older Australians – Aged care viability supplements increase.  The policies reflected in the Amending Principle were the subject of consultation with the aged care sector through the Ageing Consultative Committee, which comprises peak industry, professional and consumer bodies.

 

Information about the increase in the amount of the supplement will be disseminated via print and electronic media to approved providers.

 


ATTACHMENT

 

NOTES ON CLAUSES

 

Clauses 1 and 2 set out the title of the Determination and its commencement date of 1 January 2010.

 

Clause 3 revokes the previous Determination which set amounts under

section 44-29(8) of the Act.

 

Clause 4 defines the concepts of “1997 scheme service”, “2001 scheme service” and “2005 scheme service” by reference to section 21.34 in the Residential Care Subsidy Principles 1997.  Essentially, each concept refers to services which are subsidised in accordance with the terms of the points test set out in the relevant scheme.

 

Clause 4 also defines “Principles” as the Residential Care Subsidy Principles 1997.

 

Clause 5 sets out the amount of viability supplement payable under the 1997 scheme. 

 

Clause 6 sets out the amount of viability supplement payable under the 2001 scheme. 

 

Clause 7 sets out the amount of viability supplement payable under the 2005 scheme. The amount payable under this scheme has increase in the Determination in accordance with the 2009 – 10 Budget Measure - Measures to Support Older Australians – Aged care viability supplements increase.

 

Clause 8 sets out the amount of supplement payable to former 1997 or 2001 scheme services where the score attained by the services on the day under the scoring system set out in the table in subsection 21.35C (1) of the Residential Care Subsidy Principles 1997 is 40 or 45.

 

 

 

 

Overview

The Aged Care (Residential care subsidy – amount of viability supplement) Determination 2009 (No. 2), made under the Aged Care Act 1997, addresses the need to support the viability of residential aged care services in rural and remote areas, where these services often face higher operational costs due to isolation and other factors. This Determination was enacted to implement the 2009-10 Budget Measure, which aimed to provide additional funding to these services. The policy objective is to ensure that aged care providers in regional, rural, and remote areas receive adequate support to maintain the quality of care they offer. The enactment of this Determination by the Minister for Ageing ensures that the viability supplement is adjusted to reflect the specific challenges faced by these providers, thereby supporting their sustainability and the ongoing provision of essential aged care services in less accessible areas.

Scope and Application

The Aged Care Act 1997, as amended by the Aged Care (Residential care subsidy – amount of viability supplement) Determination 2009, governs the funding of aged care services in Australia, with a particular focus on the viability supplement payable to eligible providers of residential aged care. This legislation applies to entities approved to provide residential aged care services and their care recipients, especially those operating in rural, remote, and isolated areas where the cost structure and operational challenges are higher due to the nature of their location and resident demographics. The geographic scope of this Act is national, as it applies across the Commonwealth of Australia. The viability supplement is designed to support these smaller, rural and remote services by providing additional financial assistance. The Determination sets out the specific amounts for these supplements under three different schemes: the 1997, 2001, and 2005 schemes, each with distinct criteria and payment rates. Notably, the 2009 Determination primarily affects the 2005 scheme by increasing the viability supplement, without reducing payments under the earlier schemes, and ensures that providers transitioning from the older schemes will not receive a lower supplement than they would under the 2005 scheme. This measure is in line with the 2009-10 Budget Measures aimed at supporting older Australians, reflecting broader policy decisions that were subject to consultation with industry, professional, and consumer bodies.

Key Provisions

The Aged Care (Residential Care Subsidy – Amount of Viability Supplement) Determination 2009 (No. 2) (the Determination) under section 44-29(8) of the Aged Care Act 1997 (the Act) specifies the amount of the viability supplement payable to eligible residential care providers, particularly those in rural and remote areas, who are approved under the Act. The viability supplement is a form of assistance aimed at addressing the unique challenges faced by smaller, isolated aged care services, including higher operational costs due to their geographic location and the specific needs of their residents. The Determination, which came into effect on 1 January 2005, provides increased support for services that are more rural and remote. The Determination outlines the criteria and payment amounts for three different schemes: the 1997 scheme, the 2001 scheme, and the 2005 scheme. Each scheme has distinct eligibility criteria and payment levels, with the 2005 scheme offering higher assistance to more remote services. Clauses 5, 6, and 7 of the Determination detail the specific amounts payable under each scheme. Clause 8 further addresses the payments to former 1997 or 2001 scheme services, specifying the amount payable if their score under the scoring system set out in the Residential Care Subsidy Principles 1997 is 40 or 45. Providers of residential aged care services who are approved under the Act must adhere to the criteria and payment schedules outlined in the Determination. They must ensure their services meet the specific requirements of the relevant scheme to be eligible for the viability supplement. These obligations include maintaining accurate records and providing necessary documentation to substantiate their eligibility and the amount of subsidy they receive. The Determination imposes specific consequences for non-compliance or fraudulent claims. While the text does not specify particular penalties, breaches of the Act or the Determination could result in financial penalties, recoupment of incorrectly paid subsidies, or other administrative actions. Such breaches may also lead to civil or criminal liability depending on the nature and extent of the violation. The exact penalties for non-compliance are not detailed in the provided text, but they would typically be aligned with the provisions of the Aged Care Act 1997 and any related regulations.

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