Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020

EXPLANATORY STATEMENT

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

Aged Care Act 1997

Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020

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.

Authority

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 (September Indexation) Determination 2020 is set out in the following table:

Purpose

The purpose of the Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020 (the Amending Determination) is to increasing the income thresholds in home care in line with increases to the age pension since March 2020.

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

Schedule 1 of the Amending Determination commences on 20 September 2020.

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 rates and threshold to approved providers from 20 September 2020 will be disseminated via electronic media to approved providers.

ATTACHMENT

Details of the Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation and Other Measures) Determination 2020

Section 1 states that the name of the instrument is the Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020.

Section 2 sets out the commencement date for each Schedule to 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 income thresholds at which the different caps on the income tested care fees in home care apply.

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 (September Indexation) Determination 2020
 

The Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020 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 increase the value of the income thresholds in home care in line with increases to the age pension since March 2020.

Human Rights Implications

This legislative instrument engages the following human rights as contained in Articles 11(1) and 12(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR) and Articles 25 and 28 of Convention of the Rights of Persons with Disabilities (CRPD):

•       the right to an adequate standard of living;

•       the right to the enjoyment of the highest attainable standard of physical and mental health; and

•       the rights of equality and non-discrimination.

These changes helps ensure that aged care providers continue to receive sufficient funds in order to provide care recipients with a high standard of living and care.

In doing the above, this legislative instrument positively engages the rights set out in Articles 11(1) and 12(1) of the ICESCR and Articles 25 and 28 of the CRPD by promoting the right to an adequate standard of living and the right to the enjoyment of the highest attainable standard of physical and mental health for persons receiving aged care.

Conclusion

This legislative instrument is compatible with human rights as it promotes the right to an adequate standard of living and the highest attainable standard of physical and mental health.

Senator the Hon Richard Colbeck

Minister for Aged Care and Senior Australians