EXPLANATORY STATEMENT
Issued by the authority of the Minister for Aged Care and
Minister for Indigenous Health
Aged Care Act 1997
Aged Care (Subsidy, Fees and Payments) Amendment Determination 2017
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 aged care services (approved providers) can be eligible to receive subsidy and supplement payments in respect of the care they provide to approved care recipients.
The Act provides that for each type of aged care, the Minister may determine the amount of subsidy and supplement payable to an approved provider for the provision of that type of aged care.
The purpose of the Aged Care (Subsidy, Fees and Payments) Amendment Determination 2017 (the Amending Determination) is to implement a pause in the indexation of the Aged Care Funding Instrument amounts of basic subsidy payable to approved providers of aged care services in respect of a day from 1 July 2017.
The Amending Determination gives effect to the measure announced on 6 December 2016 by the (then) Assistant Minister for Health and Aged Care to pause the indexation of Aged Care Funding Instrument amounts during 2017-18 in order to ensure the sustainability of the existing funding arrangements.
The Amending Determination applies only in respect of care recipients who are not continuing care recipients. Continuing care recipients are those who entered a care service before 1 July 2014 and since that time have not left the service for a continuous period of more than 28 days (other than because the person is on leave), or before moving to another service, have not made a written choice to be subject to the new rules relating to fees and payments that took effect on 1 July 2014.
The same indexation pause is applied to continuing care recipients through the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment Determination 2017.
Authority
The authority for making this determination is set out in the following table:
Aged Care Act 1997 Section | |
Basic subsidy amount | 44-3(2) |
Reliance on subsection 33(3) of the Acts Interpretation Act 1901
Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Consultation
This Amending Determination gives effect to the measure announced by the (then) Assistant Minister for Health and Aged Care on 6 December 2016 on which consultation with key stakeholders took place.
Commencement
This Amending Determination commences immediately after the commencement of the Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2017.
The Amending Determination is a legislative instrument for the purposes of the Legislation Act 2003.
ATTACHMENT
Details of the Aged Care (Subsidy, Fees and Payments) Determination 2017
Section 1 states that the name of the determination is the Aged Care (Subsidy, Fees and Payments) Determination 2017.
Section 2 states that the determination commences immediately after the commencement of the Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2017.
Section 3 provides that the authority for the making of the determination is section 44-3 of the Aged Care Act 1997.
Section 4 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1 – Amendments
Aged Care (Subsidy, Fees and Payments) Determination 2014
1 Subsection 7(3) (table)
This item provides for the repealing of amounts in relation to Aged Care Funding Instrument amounts by repealing the table to subsection 7(3) and substituting a new table with the new amounts.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Humans Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Subsidy, Fees and Payments) Amendment Determination 2017
The Aged Care (Subsidy, Fees and Payments) Amendment Determination 2017 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) Act 2011.
Overview of Legislative Instrument
This legislative instrument amends the Aged Care (Subsidy, Fees and Payments) Determination 2014 to implement a pause in the indexation of Aged Care Funding Instrument amounts during 2017-18 in order to ensure the sustainability of the existing funding arrangements.
Human Rights Implications
This 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.
This legislative instrument continues the current rate of payment of the amount of basic subsidy payable to approved providers for the provision of care and services to people with a condition of frailty or disability who require assistance to achieve and maintain the highest attainable standard of physical and mental health.
Conclusion
This legislative instrument is compatible with human rights as it promotes the human right to an adequate standard of living and the highest attainable standard of physical and mental health.
The Hon Ken Wyatt
Minister for Aged Care and Minister for Indigenous Health