EXPLANATORY STATEMENT
Issued by the authority of the Minister for Senior Australians, Aged Care Services
Aged Care Act 1997
Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2021
The Aged Care Act 1997 (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.
Purpose
The Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2021 (Amending Determination) amends the Aged Care (Subsidy, Fees and Payments) Determination 2014 (Subsidy, Fees and Payments Determination).
The purpose of the Amending Determination is to apply routine indexation to the amount of subsidies and supplements payable to approved providers of aged care services in respect of a day from 1 July 2021 and to increase the income thresholds for home care subsidy reductions to retain parity with income thresholds for age pension purposes.
The Amending Determination applies only in respect of care recipients who are not continuing care recipients. Continuing care recipients are those who entered an aged 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. This Determination will be amended by the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2021.
The Amending Determination is a legislative instrument for the purposes of the Legislation Act 2003.
Authority
The Act provides that for each type of aged care, the Minister may determine, by legislative instrument, the amount of subsidy and supplement payable to an approved provider for the provision of that type of aged care. Specifically, the authority in the Act for making specific determinations in the Amending Determination is set out in the following table:
Type of Care | Section |
Residential care | |
Basic subsidy amount | subsection 44-3(2) |
Primary supplement amount | subsection 44-5(3) |
Other supplement amount | subsection 44-27(3) |
Home care | |
Basic subsidy amount | subsection 48-2(2) |
Primary supplement amount | subsection 48-3(3) |
Care subsidy reduction income thresholds | subsection 48-7(6) |
Other supplement amount | subsection 48-9(3) |
Flexible care | |
Flexible care subsidy | section 52-1 |
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.
Commencement
The Amending Determination commences on 1 July 2021.
Consultation
No consultation was undertaken with respect to amounts that have been increased in this Amending Determination by the application of routine indexation or by the implementation of measures announced in Budget 2021-22.
Regulation Impact Statement (RIS)
The Office of Best Practice Regulation (OBPR) has previously advised that a Regulation Impact Statement is not required for legislative instruments in order to implement routine indexation (OBPR ID 11719)
ATTACHMENT
Details of the Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2021
Section 1 states that the name of the instrument is the Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2021.
Section 2 states that the whole of the instrument commences on 1 July 2021.
Section 3 provides that the authority for the making of the instrument 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 respite care;
- the oxygen supplement amount for residential care and home care;
- the enteral feeding supplement amount for residential care and home care;
- the adjusted subsidy reduction amount for residential care;
- the viability supplement safety net amount for residential care;
- the veterans’ supplement amount for residential care;
- the homeless supplement amount for residential care;
- the home care subsidy reduction income thresholds; 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 Aged Care Funding Instrument (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 care recipients being provided with residential care through a 1997 scheme service (as defined in section 56 of the Subsidy, Fees and Payments Determination) 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 care recipients being provided with residential care through a 2001 scheme service (as defined in section 56 of the Subsidy, Fees and Payments Determination) 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 care recipients being provided with residential care through a 2005 scheme service (as defined in section 56 of the Subsidy, Fees and Payments Determination) 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 care recipients being provided with residential care through a 2017 scheme service (as defined in section 56 of the Subsidy, Fees and Payments Determination) by repealing the table to section 60A and substituting a new table with the indexed amounts.
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 the 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 the 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 the definition of ARIA value additional amount)
This item provides for the indexation of amounts in relation to the amount of viability supplement for a home care place allocated in respect of a multi-purpose service 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 the definition of MMM classification additional amount)
This item provides for the indexation of amounts in relation to the amount of viability supplement for a home care place allocated in respect of a multi-purpose service 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.
Item 18 – Subsection 104(1) (table)
This item provides for the indexation of amounts in relation to the amount of flexible care subsidy for care through an innovative care service by repealing the table to subsection 104(1) and substituting a new table with the indexed amounts.
Item 19 – Subsection 104(2) (table)
This item provides for the indexation of amounts in relation to the amount of flexible care subsidy for care through an innovative care service by repealing the table to subsection 104(2) and substituting a new table with the indexed amount.
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 2021
The Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2021 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
The Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2021 (Amending Determination) 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 for a day from 1 July 2021.
Human Rights Implications
The Amending Determination 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 articles 11(1) and 12(1) of the International Covenant on Economic, Social and Cultural Rights, and articles 25 and 28 of the Convention on the Rights of Persons with Disabilities.
The Amending Determination applies routine indexation to increase 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.
Legislation requires government-subsidised aged care homes meet standards to ensure that quality care and services are provided to all residents. The Australian Government’s spending on aged care will protect aged care recipient’s rights to an adequate standard of living.
Conclusion
The Amending Determination 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.
Senator the Hon Richard Colbeck
Minister for Senior Australians, Aged Care Services