Aged Care (Subsidy, Fees and Payments) Amendment (March Indexation and Other Measures) Determination 2019

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Senior Australians and Aged Care and

Minister for Indigenous Health

Aged Care Act 1997

Aged Care (Subsidy, Fees and Payments) Amendment (March Indexation and Other Measures) Determination 2019

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. Specifically, the authority for making specific determinations in the Aged Care (Subsidy, Fees and Payments) Amendment (March Indexation and Other Measures) Determination 2019 is set out in the following table:

The purpose of the Aged Care (Subsidy, Fees and Payments) Amendment (March Indexation and Other Measures) Determination 2019 (the Amending Determination) is to increase the amount of supplements payable to approved providers of aged care services in respect of a day from 20 March 2019 in line with the changes to the consumer price index (CPI), in addition to increasing the value of a number of caps and thresholds in line with the age pension.

The Amending Determination gives effect to the measures announced on 17 December 2018 by the Prime Minister, the Hon Scott Morrison MP, of a 30 per cent increase to the Viability Supplement for eligible residential aged care providers and a 30 per cent increase to the Homeless Supplement.

The Amending Determination also gives effect to the measures announced on 10 February 2019 by the Prime Minister, the Hon Scott Morrison MP, of a $320 million temporary general subsidy boost for residential aged care services to be paid for the period 20 March 2019 to 30 June 2019 and a permanent $35.7 million boost increase in home care supplements for dementia and cognition, and veterans.

The Amending Determination also corrects two misprints by amending the amount of home care viability supplement in item 7 in the definition of ARIA value viability supplement amount in section 84A of the Determination, and by amending the safety net amount for the residential care viability supplement 2017 scheme in subsection 60B(4) of the Determination. No adverse effects have occurred as a result of the incorrect amounts in the current determination.

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 determined in the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014.

The Amending Determination is a legislative instrument for the purposes of the Legislation Act 2003.

Commencement

The Amending Determination commences on 20 March 2019.

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 supplements in this determination is calculated through the use of a well-established formula based on the CPI as a measure of the movements in the non-labour costs of providers. As this is in accordance with the general policy for indexation of aged care payments upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this indexation.

Information about the increase in the amount of the subsidy and supplements payable to approved providers from 20 March 2019 will be disseminated via electronic media to approved providers.

The increase to the residential aged care basic subsidy rates provides an additional $320 million for the residential aged care sector from 20 March 2019 to 30 June 2019.

That increase along with the increases to the Viability Supplement for eligible residential aged care providers; the Homeless Supplement; the home care dementia and cognition supplement; and the increase of the home care veterans’ supplement reflect calls from the sector for additional support in these areas.

ATTACHMENT

Details of the Aged Care (Subsidy, Fees and Payments) Amendment (March Indexation and Other Measures) Determination 2019

Section 1 states that the name of the instrument is the Aged Care (Subsidy, Fees and Payments) Amendment (March Indexation and Other Measures) Determination 2019.

Section 2 sets out the commencement date for the instrument.

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 respite supplement;
• the caps which limit the amount of means tested and income tested care fees payable by care recipients;
• the cap on the value of the former principal residence;
• the asset thresholds at which different taper rates apply in the asset test;
• the accommodation supplement; and
• the income thresholds at which the different caps on the income tested care fees in home care apply.

Item 2 – Amendments of listed provisions – increased amounts

This item provides for increased amounts in relation to the following:

• low level respite care basic subsidy;
• high level respite care basic subsidy;
• the viability supplement safety net amount for certain former 1997, 2001, and 2005 scheme residential services;
• homeless supplement;
• home care dementia and cognition supplement;
• home care veterans’ supplement.

Item 3 – Subsection 7(3) (table)

This item provides for an increase of ACFI basic subsidy amounts for residential care by repealing the table to subsection 7(3) and substituting a new table with the increased amounts.

Item 4 – Section 57 (table)

This item provides for an increase 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 increased amounts.

Item 5 – Section 58 (table)

This item provides for an increase 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 increased amounts.

Item 6 – Section 59 (table)

This item provides for an increase 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 increased amounts.

Item 7 – Section 60A (table)

This item provides for an increase 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 increased amounts.

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

This item corrects a typographical error 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 correct amounts.

Item 9 – Section 97 (table)

This item provides for an increase 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 increased amounts.

Item 10 – Section 98 (table)

This item provides for an increase 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 increased amounts.

Item 11 – Section 99 (table)

This item provides for an increase 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 increased amounts.

Item 12 – Section 99A (table)

This item provides for an increase 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 increased 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 (March Indexation and Other Measures) Determination 2019
 

The Aged Care (Subsidy, Fees and Payments) Amendment (March Indexation and Other Measures) Determination 2019 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 supplements payable to approved providers of aged care services in line with the changes to the consumer price index (CPI), in addition to increasing the value of certain caps and thresholds in line with the age pension.  The legislative instrument also increases the amount of the basic subsidy that is payable to approved providers of residential 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 concerns the amount of 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.

This legislative instrument increases the amounts of additional payments in the form of supplements that are payable to approved providers to assist with the costs of caring for people who are financially disadvantaged.  It also increases the thresholds and caps that are taken into account in determining how much people who can afford to contribute to the cost of their care can be asked to pay.  These increases are designed to ensure the payments and contributions keep pace with increases in the consumer price index.

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 Minister for Senior Australians and Aged Care and Minister for Indigenous Health,

the Hon Ken Wyatt AM, MP