EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Aged Care (Residential Care Subsidy –Transitional Homeless Supplement Amount) 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.
Section 96-1 of the Act allows the Minister to make Principles providing for various matters required or permitted by a Part or section of the Act. Among the Principles made under section 96-1 are the Residential Care Subsidy Principles 1997 (the Principles).
Part 3.1 of the Act relates to residential care subsidy. Residential care subsidy is a payment by the Commonwealth to approved providers for providing residential care to care recipients. Section 44-5 of the Act provides for the payment of primary supplements. Supplements are paid to approved providers in respect of a payment period as part of residential care subsidy. Section 44-16 of the Act states that the Principles may provide for additional primary supplements. The Principles describe a supplement called the transitional homeless supplement, along with the eligibility criteria for this supplement.
Subsection 44-16(3) of the Act provides that the Minister may determine, by legislative instrument, in respect of each supplement the amount of the supplement.
The purpose of the Aged Care (Residential Care Subsidy - Transitional Homeless Supplement Amount) Determination 2013 (the Determination) is to set the level of funding provided through the transitional homeless supplement.
The amount of transitional homeless supplement payable in respect of a day for an eligible care recipient is $15. Details are set out in the attachment.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
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.
As part of the reform, changes are needed to the Act and to delegated legislation. This new Determination enables the value of a new transitional homeless supplement to be set.
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.
The Senate Community Affairs Legislation Committee in its report on the Living Longer Living Better aged care reform package recommended that the government create a homeless supplement. The Government supported this recommendation.
In the 2011-12 Budget, the Government introduced changes to the viability supplement. These changes included additional funding for providers that specialise in providing care to people who have a history of, or are at risk of, homelessness, following a finding from the Aged Care Funding Instrument (ACFI) review. Recent monitoring of the changes suggests that additional assistance above that already provided is required to support the ongoing viability of these services.
This Determination sets the amount of the new transitional homeless supplement in recognition of the additional costs of caring for people with a history of, or at risk of, homelessness.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 15086).
Commencement
The Determination commences on 1 October 2013.
ATTACHMENT
Details of the Aged Care (Residential Care Subsidy – Transitional Homeless Supplement Amount) Determination 2013
Section 1 - Name of determination
This section states that this determination is the Aged Care (Residential Care Subsidy –Transitional Supplement Amount) Determination 2013.
Section 2 - Commencement
This section states that this determination commences on 1 October 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 a definition of ‘transitional homeless supplement’. This means the transitional homeless supplement referred to in section 21.25EA of the Residential Care Subsidy Principles 1997.
Section 5 - Amount of transitional homeless supplement
Section 5 states that the amount of the transitional homeless supplement that is payable in respect of a day for an eligible care recipient is $15. The intent of the transitional homeless supplement is to support those providers providing care to people who have a history of, or are at risk of, homelessness.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Residential Care –Transitional Homeless Supplement Amount) 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 –Transitional Homeless Supplement Amount) Determination 2013 (Legislative Instrument) is to set the level of funding provided through the transitional homeless supplement at $15 per day for each eligible care recipient.
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 additional funding is provided to eligible providers providing care to people who have a history of, or are at risk of, homelessness. 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 and the right to an adequate standard of living.
The Hon. Mark Butler MP
Minister for Mental Health and Ageing