Aged Care (Residential Care Subsidy — Dementia and Severe Behaviours and Veterans' Supplement Amounts) Determination 2013

Administered by Department of Social Services

Legislation au F2013L01341 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Mental Health and Ageing

 

Aged Care Act 1997

 

Aged Care (Residential Care Subsidy – Dementia and Severe Behaviours and Veterans’ Supplement Amounts) Determination 2013

 

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. 

 

Residential care subsidy is a payment by the Commonwealth to an approved provider for providing residential care to care recipients. Subsidy is made up of a basic subsidy amount and any supplements that the approved provider may be paid in respect of an eligible care recipient or in respect of the aged care service through which the residential care is provided.

 

Subdivision 44-C of the Act sets out a number of primary supplements that may be payable to an approved provider of residential aged care. Section 44-16 of Subdivision 44-C allows for additional primary supplements to be set out in the Residential Care Subsidy Principles. Subsection 14-16(3) of the Act states that the Minister may determine, by legislative instrument, the amount of primary supplements prescribed in the Residential Care Subsidy Principles 1997 (the Principles). From 1 August 2013, the dementia and severe behaviours supplement is a new additional primary supplement set out in Division 6 of Part 10 of the Principles.

 

The Act also provides for the payment of other supplements, as set out in Subdivision 44-F. The Aged Care (Living Longer Living Better) Act 2013 amends section 44-27 in Subdivision 44-F from 1 August 2013 to insert a new paragraph 44-27(e). This paragraph enables other supplements to be set out in the Residential Care Subsidy Principles. From 1 August 2013, the veterans’ supplement (a new other supplement) will be set out in Part 13A, Division 2 of the Principles.

 

The purpose of the Aged Care (Residential Care Subsidy – dementia and severe behaviours and veterans’ supplement Amounts) Determination 2013 (the Determination) is to set the level of funding paid by the Commonwealth to approved providers in the form of the dementia and severe behaviours supplement and the veterans’ supplement. Details are set out in the Attachment.

 

The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The creation of the veterans’ supplement as an ‘other supplement’ relies on amendments described in the Aged Care (Living Longer Living Better) Act 2013 which commence on 1 August 2013. This Determination is being made in advance of this commencement date. This is possible in accordance with section 4 of the Acts Interpretation Act 1901, which allows for the exercise of powers between enactment and commencement of an Act including, for example, the power to make delegated legislation.

Consultation

The Living Longer Living Better aged care reform package was developed in close consultation with the aged care sector, including consumers, industry and professional bodies. 

 

Consultation on the proposed changes to the Act, and to delegated legislation, commenced in November 2012, with the public release of a paper providing an overview of the proposed legislative changes.

 

A video presentation detailing the changes was also made available through the Living Longer Living Better website, to assist with public understanding of the proposed changes. 

 

During November and December 2012, the Department of Health and Ageing (the Department) also held briefing sessions in Melbourne, Sydney and Canberra on the proposed changes.

 

Stakeholders and the general community were able to provide written comments during a four-week period (21 November – 21 December 2012). The comments were made publicly available on the Living Longer Living Better website, unless the author requested otherwise. The Department received 54 submissions from members of the public, peak bodies and approved providers in response to the published overview of legislative amendments. Submissions received via the consultation on the overview of the proposed legislative changes were used to inform drafting of the amending bills and the delegated legislation.

 

In March and April 2013, the Department held industry briefing sessions across Australia to provide information and to explain, in detail, the proposed legislative changes included in the package of Bills introduced into Parliament on 13 March 2013. The briefing sessions also outlined changes to delegated legislation. For those who were unable to attend the briefings a copy of the presentation, supporting handouts, a detailed Questions and Answers document and an information video were made available on the Living Longer Living Better website.

Information the amount of the supplement will be disseminated via electronic media to approved providers.

 

The new supplements, including eligibility criteria have been subject to extensive consultation since December 2012.  The Dementia and Veterans’ Supplement Working Group was formed to provide advice to the Department on eligibility criteria for new supplements for the care of people with dementia and other behavioural conditions and veterans’ with specified mental health conditions.

 

Commencement

 

This Determination commences on 1 August 2013.

 

 

 


ATTACHMENT

 

Details of the Aged Care (Residential Care Subsidy – Dementia and Severe Behaviours and Veterans’ Supplement Amounts) Determination 2013

 

Section 1 - Name of determination

This section states that this determination is the Aged Care (Residential Care Subsidy – Dementia and Severe Behaviours and Veterans’ Supplement Amounts) Determination 2013.

 

Section 2 - Commencement

This section states that this determination commences on 1 August 2013.

 

Section 3 - Authority

This section states that this determination is made under the Aged Care Act 1997 (the Act).

 

Section 4 - Definitions

This section provides definitions of terms that are used within this determination. Specifically,

  • Act means the Aged Care Act 1997;
  • basic subsidy amount means the amount worked out using Subdivision 44-B of the Act;
  • dementia and severe behaviours supplement means the dementia and severe behaviours supplement referred to in Division 6 of Part 10 of the Residential Care Subsidy Principles 1997;
  • veterans’ supplement means the veterans’ supplement referred to in Division 2 of Part 13A of the Residential Care Subsidy Principles 1997.  

 

Section 5 - Amount of dementia and severe behaviours supplement

This section sets the amount of the dementia and severe behaviours supplement that is payable in respect of a day for an eligible care recipient. For an eligible care recipient, the amount is $16.15 per day.

 

Section 6 - Amount of veterans’ supplement

This section sets the amount of the veterans’ supplement that is payable in respect of a day for an eligible care recipient.  For an eligible care recipient, the amount payable is $6.57 per day.


 

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 – Dementia and Severe Behaviours and Veterans’ Supplement Amounts) Determination 2013

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 – Dementia and Severe Behaviours and Veterans’ Supplement Amounts) Determination 2013 (the Legislative Instrument) is to set the level of funding that is paid to an approved provider in the form of the dementia and severe behaviours supplement and the veterans’ supplement.

 

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 increasing the amount payable to an approved provider of residential care if a care recipient is eligible for the dementia and severe behaviours supplement and/or the veterans’ supplement. It ensures that an approved provider receives a higher level of subsidy in recognition of the costs involved in caring for these care recipients.  

 

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 Jacinta Collins
Minister for Mental Health and Ageing

 

 

Overview

The Aged Care (Residential Care Subsidy – Dementia and Severe Behaviours and Veterans’ Supplement Amounts) Determination 2013 was enacted to address the need for additional funding mechanisms for the care of elderly individuals with specific conditions, particularly those suffering from dementia, severe behaviours, and veterans with certain mental health conditions. This legislative instrument was introduced to supplement the Aged Care Act 1997, which governs the regulation and funding of aged care services. The Australian Parliament, through the Minister for Mental Health and Ageing, established this determination to provide increased financial support to approved residential care providers for the additional costs incurred in caring for these vulnerable populations. The policy objective is to ensure that providers receive adequate compensation for the specialised care required by these individuals, thereby improving the quality of care and addressing potential gaps in service provision. Extensive consultation with the aged care sector, including consumers, industry, and professional bodies, was conducted to inform the creation of this determination. The determination sets the level of funding for the dementia and severe behaviours supplement at $16.15 per day and the veterans' supplement at $6.57 per day for eligible care recipients. This legislative instrument is compatible with human rights, particularly the right to health, by ensuring that approved providers receive a higher subsidy for the care of individuals with dementia and severe behaviours and veterans with specified mental health conditions.

Scope and Application

The Aged Care (Residential Care Subsidy – Dementia and Severe Behaviours and Veterans’ Supplement Amounts) Determination 2013 applies to approved providers of residential aged care services in Australia who are eligible to receive residential care subsidy payments for the care they provide to approved care recipients. This legislative instrument sets out the amount of the dementia and severe behaviours supplement and the veterans’ supplement that are payable to these approved providers on a daily basis for eligible care recipients. The determination is made under the Aged Care Act 1997, and it commenced on 1 August 2013. It is important to note that the creation of the veterans’ supplement as an ‘other supplement’ relies on amendments described in the Aged Care (Living Longer Living Better) Act 2013, which also commence on 1 August 2013. The purpose of this determination is to ensure that approved providers receive a higher level of subsidy in recognition of the costs involved in caring for care recipients who are eligible for the dementia and severe behaviours supplement and/or the veterans’ supplement. This legislative instrument promotes the human right to health and the right to an adequate standard of living. The Aged Care (Residential Care Subsidy – Dementia and Severe Behaviours and Veterans’ Supplement Amounts) Determination 2013 extends the application of the Aged Care Act 1997 by setting out the amount of the dementia and severe behaviours supplement and the veterans’ supplement. These supplements are in addition to the basic subsidy amount and any other primary or other supplements that may be payable to an approved provider of residential aged care. The determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The creation of the veterans’ supplement as an ‘other supplement’ relies on amendments described in the Aged Care (Living Longer Living Better) Act 2013, which commence on 1 August 2013. This determination is being made in advance of this commencement date, in accordance with section 4 of the Acts Interpretation Act 1901, which allows for the exercise of powers between enactment and commencement of an Act including, for example, the power to make delegated legislation.

Key Provisions

The main operative sections of the Aged Care (Residential Care Subsidy – Dementia and Severe Behaviours and Veterans’ Supplement Amounts) Determination 2013 (the Determination) are Sections 5 and 6, which specify the amounts of the dementia and severe behaviours supplement and the veterans’ supplement, respectively, payable per day for an eligible care recipient. Section 5 sets the dementia and severe behaviours supplement at $16.15 per day, while Section 6 sets the veterans’ supplement at $6.57 per day. The Determination applies to approved providers who are eligible to receive these supplements as part of their residential care subsidy payments under the Aged Care Act 1997. The Determination imposes obligations on approved providers to ensure they meet the eligibility criteria for the dementia and severe behaviours supplement and the veterans’ supplement. Providers must accurately assess and document the care needs of their care recipients to determine eligibility for these supplements. They are also required to apply for these supplements as part of their regular subsidy payments process. Additionally, approved providers must comply with any other relevant provisions of the Aged Care Act 1997 and associated regulations. Breach of the obligations imposed by the Determination can lead to civil and administrative consequences. If an approved provider fails to correctly claim or pay the supplements to which they are entitled, they may be subject to audit and investigation by the Department of Health. In cases of non-compliance, the Department may recover any overpayments made and may impose financial penalties. While the Determination does not specify maximum penalties, the Aged Care Act 1997 provides for substantial penalties, including fines, for non-compliance with the Act's provisions. The seriousness of the breach and the provider's history of compliance will be considered in determining the appropriate penalty.

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Elder Law
Instrument
Legislative Instrument
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Commencement Provisions
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Reporting & Disclosure Obligations
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.