Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2017

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 (July Indexation) 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 (July Indexation) Determination 2017 (the Amending Determination) is to increase the amount of subsidies and supplements payable to approved providers of aged care services in respect of a day from 1 July 2017.  The Amending Determination also gives effect to the measure announced on 6 December 2016 by the (then) Assistant Minister for Health and Aged Care, that rural, remote and homeless residential service providers eligible for viability supplement under the 2017 scheme, will have, from 1 July 2017, a flat rate increase of an additional $2.12 per day per resident on top of the indexed amount.

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 amount of subsidy and supplements payable in respect of continuing care recipients is detailed in the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014.

Authority

The authority for making specific determinations is set out in the following table:

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

Routine indexation of subsidies and supplements in this Amending Determination is calculated through the use of a well-established formula based on the relevant wage and price indices.  This Amending Determination gives effect to routine indexation.  Accordingly, no specific consultation was undertaken with respect to this indexation.

Commencement

The Amending Determination commences on 1 July 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) Amendment (July Indexation) Determination 2017

Section 1 states that the name of the determination is the Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2017.

Section 2 states that the determination commences on 1 July 2017.

Section 3 provides that the authority for the making of the determination is 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

Item 1 – Amendments of listed provisions – indexation of amounts

This item provides for the indexation of amounts in relation to the following:

• the basic subsidy amount for residential care and home care;
• the amount of oxygen supplements for residential care and home care;
• the amount of enteral feeding supplement for residential care and home care;
• the adjusted subsidy reduction;
• the amount of other supplements for residential care and home care; and
• the amount of flexible care subsidy.

Item 2 – Subsection 7(3) (table)

This item provides for the indexation of amounts in relation to the ACFI amounts by repealing the table to subsection 7(3) and substituting a new table with the indexed amounts.

Item 3 – Section 57 (table)

This item provides for the indexation of amounts in relation to the amount of viability supplement for residential care through a 1997 scheme service by repealing the table to section 57 and substituting a new table with the indexed amounts.

Item 4 – Section 58 (table)

This item provides for the indexation of amounts in relation to the amount of viability supplement for residential care through a 2001 scheme service by repealing the table to section 58 and substituting a new table with the indexed amounts.

Item 5 – Section 59 (table)

This item provides for the indexation of amounts in relation to the amount of viability supplement for residential care through a 2005 scheme service by repealing the table to section 59 and substituting a new table with the indexed amounts.

Item 6 – Section 60A (table)

This item provides for the indexation of amounts in relation to the amount of viability supplement for residential care through a 2017 scheme service by repealing the table to section 60A and substituting a new table with the indexed amounts. This item also gives effect to the measure announced on 6 December 2016 by the Assistant Minister for Health and Aged Care, that rural, remote and homeless residential service providers eligible for viability supplement under the 2017 scheme, will have from 1 July 2017, a flat rate increase of an additional $2.12 per day per resident on top of the indexed amount.

Item 7 – Section 67 (table)

This item provides for the indexation of amounts in relation to the basic subsidy amount for home care by repealing the table to section 67 and substituting a new table with the indexed amounts.

Item 8 – Section 84A (table to definition of ARIA value viability supplement amount)

This item provides for the indexation of amounts in relation to the amount of viability supplement for home care by repealing the table to the definition of ARIA value viability supplement amount in section 84A and substituting a new table with the indexed amounts.

Item 9 – Section 84A (table to definition of MMM classification viability supplement amount)

This item provides for the indexation of amounts in relation to the amount of viability supplement for home care by repealing the table to the definition of MMM classification viability supplement amount in section 84A and substituting a new table with the indexed amounts.

Item 10 – Section 87 (table to definition of ARIA value additional amount)

This item provides for the indexation of amounts in relation to the amount of viability supplement for home care by repealing the table to the definition of ARIA value additional amount in section 87 and substituting a new table with the indexed amounts.

Item 11 – Section 87 (table to definition of MMM classification additional amount)

This item provides for the indexation of amounts in relation to the amount of viability supplement for home care by repealing the table to the definition of MMM classification additional amount in section 87 and substituting a new table with the indexed amounts.

Item 12 – Section 94 (table)

This item provides for the indexation of amounts in relation to the respite supplement equivalent amount for a multi-purpose service by repealing the table to section 94 and substituting a new table with the indexed amounts.

Item 13 – Section 97 (table)

This item provides for the indexation of amounts in relation to the viability supplement equivalent amount for Category A multi-purpose services by repealing the table to section 97 and substituting a new table with the indexed amounts.

Item 14 – Section 98 (table)

This item provides for the indexation of amounts in relation to the viability supplement equivalent amount for Category B multi-purpose services by repealing the table to section 98 and substituting a new table with the indexed amounts.

Item 15 – Section 99 (table)

This item provides for the indexation of amounts in relation to the viability supplement equivalent amount for Category C multi-purpose services by repealing the table to section 99 and substituting a new table with the indexed amounts.

Item 16 – Section 99A (table)

This item provides for the indexation of amounts in relation to the viability supplement equivalent amount for Category D multi-purpose services by repealing the table to section 99A and substituting a new table with the indexed amounts.

Item 17 – Section 101 (table)

This item provides for the indexation of amounts in relation to the concessional resident equivalent amounts for multi-purpose services by repealing the table to section 101 and substituting a new table with the indexed 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 (July Indexation) Determination 2017
 

The Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) 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, and increases the amount of particular subsidies and supplements payable to approved providers of aged care services. 

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 increases the amount of subsidies and supplements 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