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

Administered by Department of Health, Disability and Ageing

Legislation au F2020L01188 Not in force Legislative Instrument

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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:

 

Home care

Income threshold

subsection 48-7(6)

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

Overview

The Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020 was enacted to address the need for adjusting income thresholds for home care under the Aged Care Act 1997 in line with the increases to the age pension since March 2020. This determination was made under the authority granted by the Aged Care Act 1997, which empowers the Minister for Aged Care and Senior Australians to set the amounts of subsidy and supplements payable to approved providers for aged care services. The policy objective of this amendment is to ensure that aged care providers receive sufficient funds to maintain a high standard of living and care for recipients. The Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020 aims to positively engage the human rights of aged care recipients, particularly their right to an adequate standard of living and the highest attainable standard of physical and mental health, by ensuring that funding keeps pace with the cost of living. This legislative instrument amends the Aged Care (Subsidy, Fees and Payments) Determination 2014 to increase the income thresholds for home care in accordance with the increases to the age pension since March 2020. It applies specifically to care recipients who are not continuing care recipients, which are individuals who entered a care service before 1 July 2014 and have not left the service for more than 28 days continuously, excluding leave periods, or have not opted to be subject to the new rules for fees and payments that took effect on 1 July 2014. The increase in rates and thresholds to approved providers will be communicated through electronic media. This determination is compatible with human rights, particularly engaging the rights to an adequate standard of living and the highest attainable standard of physical and mental health, ensuring that recipients of aged care continue to receive high-quality care.

Scope and Application

The Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020 applies to approved providers of aged care services who are eligible to receive subsidy and supplement payments for the care they provide to non-continuing care recipients. This legislative instrument amends the Aged Care (Subsidy, Fees and Payments) Determination 2014 to adjust the income thresholds in home care in line with increases to the age pension since March 2020. The amendments pertain to the income thresholds at which different caps on the income-tested care fees in home care apply. This determination applies nationwide under the Commonwealth jurisdiction, and it specifically excludes continuing care recipients who were in a care service prior to 1 July 2014 and have not left the service for a continuous period of more than 28 days since then. The Minister for Aged Care and Senior Australians has the authority to make this determination under the Aged Care Act 1997, and it is a legislative instrument for the purposes of the Legislation Act 2003. The Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020 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 for persons receiving aged care.

Key Provisions

The Aged Care (Subsidy, Fees and Payments) Amendment (September Indexation) Determination 2020 amends the Aged Care (Subsidy, Fees and Payments) Determination 2014 to index income thresholds for home care services in line with increases to the age pension since March 2020 (Section 4). This adjustment ensures that approved providers of aged care services can continue to receive adequate subsidies and payments for the care they provide, thus maintaining the quality of care for care recipients. Specifically, the income thresholds at which different caps on income-tested care fees in home care apply have been increased (Schedule 1, Item 1). The obligations under this Determination are primarily placed on approved providers who must ensure that they comply with the updated income thresholds and apply them correctly when calculating the fees for care recipients. Approved providers are also required to provide accurate information and documentation to substantiate their claims for subsidy and supplement payments. The Minister for Aged Care and Senior Australians has the responsibility to monitor compliance with these updated thresholds and to ensure that the subsidy and supplement payments are disbursed in accordance with the amended Determination. Breaches of the provisions of this Determination could result in administrative consequences for approved providers, including the potential for incorrect subsidy and supplement payments. While specific offences and penalties are not detailed in the Determination itself, it is understood that failure to comply with the Aged Care Act 1997 and its associated regulations could lead to investigations, audits, and possible financial penalties or corrective actions. The exact penalties would be determined based on the severity and nature of the breach, as outlined in the broader legislative framework of the Aged Care Act 1997.

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