Aged Care (Transitional Provisions) Amendment (March 2017 Indexation) Principles 2017

Administered by Department of Health, Disability and Ageing

Legislation au F2017L00247 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Aged Care and

Minister for Indigenous Health

 

Aged Care (Transitional Provisions) Act 1997

 

Aged Care (Transitional Provisions) Amendment (March 2017 Indexation)
Principles 2017

 

The Aged Care (Transitional Provisions) Act 1997 (the Transitional Provisions Act), in conjunction with the Aged Care Act 1997 (the Act), provides for the funding of aged care services in operation before 1 July 2014 that are providing care to continuing care recipients.

 

Persons who are approved under the Act to provide aged care services (approved providers) can be eligible to receive subsidy payments under the Transitional Provisions Act in respect of the care they provide to 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 new rules relating to fees and payments that take effect on 1 July 2014.

 

Section 96‑1 of the Transitional Provisions Act allows the Minister to make Principles providing for various matters such as the eligibility requirements for the payment of subsidies and supplements in respect of continuing care recipients in residential care and home care.

 

Among the Principles made under section 96‑1 is the Aged Care (Transitional Provisions) Principles 2014 (the Transitional Provisions Principles).

 

The purpose of the Aged Care (Transitional Provisions) Amendment (March 2017 Indexation) Principles 2017 (the Amending Principles) is to update the specified amount of maximum accommodation charge for a post 2008-reform resident as a result of routine indexation.

 

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

 

Commencement

The amendments commence on 20 March 2017.

 

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

As the amendments in the Amending Principles are routine in nature, no specific consultation was undertaken in relation to this instrument.

 

Information about the increase in the amount of the subsidies and supplements payable to approved providers from 20 March 2017 will be disseminated via electronic media to approved providers.

 

Regulation Impact Statement

The Office of Best Practice Regulation (OBPR) has advised that no Regulation Impact Statement is required (OBPR ID 16682).

ATTACHMENT

 

Details of the Aged Care (Transitional Provisions) Amendment (March 2017 Indexation) Principles 2017

 

Clause 1 states that the name of the Principles is the Aged Care (Transitional Provisions) Amendment (March 2017 Indexation) Principles 2017.

 

Clause 2 sets out the commencement dates for the Amending Principle.

 

Clause 3 provides that the authority for the making of the Amending Principle is section 96‑1 of the Aged Care (Transitional Provisions) Act 1997 (the Transitional Provisions Act).

 

Clause 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 (Transitional Provisions) Principles 2014

 

Item 1 – Subsection 118(1) (after table item 18)

This item inserts a new item 19 to specify the amount of maximum daily accommodation charge for a post-2008 reform resident who first entered care before 1 July 2004 and re-enters on or after 20 March 2017 and before 20 September 2017.

The effect of this amendment is to specify, for the purpose of paragraph 57A‑6(1)(c) of the Transitional Provisions Act, an amount of maximum daily accommodation charge for those care recipients who re-enter care on or after 20 March 2017 and before 20 September 2017.

The amount is $19.52.

Item 2 – Subsection 118(2) (after table item 18)

This item inserts a new item 19 to specify the amount of maximum daily accommodation charge for a post-2008 reform resident who first entered care on or after 1 July 2004, receives an income support payment and re-enters on or after 20 March 2017 and before                    20 September 2017.

The effect of this amendment is to specify, for the purpose of paragraph 57A‑6(1)(c) of the Transitional Provisions Act, an amount of maximum daily accommodation charge for those care recipients who re-enter care on or after 20 March 2017 and before 20 September 2017.

The amount is $35.90.

Item 3 – Subsection 118(3) (after table item 14)

This item inserts a new item 15 to specify the amount of maximum daily accommodation charge for a post-2008 reform resident who first entered care on or after 1 July 2004, does not receive an income support payment and re‑enters on or after 20 March 2017 and before        20 September 2017 into a service which meets the building requirements specified in Schedule 1 to the Transitional Provisions Principles.

The effect of this amendment is to specify, for the purpose of paragraph 57A‑6(1)(c) of the Transitional Provisions Act, an amount of maximum daily accommodation charge for those care recipients who re-enter care on or after 20 March 2017 and before 20 September 2017.

The amount is $35.90.

Item 4 – Subsection 118(4) (after table item 18)

This item inserts a new item 19 to specify the amount of maximum daily accommodation charge for a post-2008 reform resident who first entered care on or after 1 July 2004, does not receive an income support payment and re‑enters on or after 20 March 2017 and before        20 September 2017 into a service which does not meet the building requirements in Schedule 1 to the Transitional Provisions Principles.

The effect of this amendment is to specify, for the purpose of paragraph 57A‑6(1)(c) of the Transitional Provisions Act, an amount of maximum daily accommodation charge for those care recipients who re-enter care on or after 20 March 2017 and before 20 September 2017.

The amount is $30.17.

 


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Aged Care (Transitional Provisions) Amendment (March 2017 Indexation) Principles 2017

 

The Aged Care (Transitional Provisions) Amendment (March 2017 Indexation) Principles 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 2011.

 

Overview of the Legislative Instrument

The Principles update the specified amount of maximum accommodation charge for a post 2008-reform resident as a result of routine indexation.

 

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 includes matters relating to the payment of aged care subsidies and supplements 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 instrument increases the maximum amount certain residents can be asked to pay for their accommodation to take account of movements 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 by maintaining the value of these payments.

 

The Minister for Aged Care and Minister for Indigenous Health,

the Hon Ken Wyatt AM, MP

 

Overview

The Aged Care (Transitional Provisions) Amendment (March 2017 Indexation) Principles 2017, enacted by the Australian Parliament, address the need to update the specified amount of maximum accommodation charge for post-2008-reform residents due to routine indexation. This legislation amends the Aged Care (Transitional Provisions) Principles 2014 to reflect changes in the consumer price index. The objective of this amendment is to ensure that the subsidy payments provided to approved providers for the care of continuing care recipients remain aligned with current economic conditions, thereby supporting the provision of high-quality care. The Minister for Aged Care and Minister for Indigenous Health, the Hon Ken Wyatt AM, MP, issued this legislative instrument under the authority of section 96-1 of the Aged Care (Transitional Provisions) Act 1997. As part of the routine indexation process, no specific consultation was conducted, and the changes will be communicated to affected parties through electronic media. This legislative instrument has been assessed and is found to be compatible with human rights, specifically the right to an adequate standard of living and the right to the highest attainable standard of physical and mental health, as outlined in international human rights agreements.

Scope and Application

The Aged Care (Transitional Provisions) Amendment (March 2017 Indexation) Principles 2017 applies to approved providers who are eligible to receive subsidy payments under the Aged Care (Transitional Provisions) Act 1997 for the care they provide to continuing care recipients. The Act pertains to services that have been operational before 1 July 2014 and are providing care to recipients who have not left the service for a continuous period of more than 28 days, except for those who are on leave or have moved to another service, and who have not opted to be subject to new rules relating to fees and payments. The scope of the Act is national as it is a Commonwealth Act. There are no stated exclusions or exemptions within the Act, although its application is limited to those services and recipients fitting the specified criteria. The Act extends its application through subordinate instruments, such as the Transitional Provisions Principles 2014, which are amended by the Amending Principles to reflect routine indexation adjustments. This ensures that the maximum accommodation charge for post-2008 reform residents is updated accordingly.

Key Provisions

The Aged Care (Transitional Provisions) Amendment (March 2017 Indexation) Principles 2017 (the Amending Principles) amend the Aged Care (Transitional Provisions) Principles 2014 (the Transitional Provisions Principles) to update the specified amount of maximum accommodation charge for a post 2008-reform resident as a result of routine indexation. This is achieved by inserting new items into the schedule of the Transitional Provisions Principles. Specifically, these new items (item 19 under subsection 118(1), item 19 under subsection 118(2), item 15 under subsection 118(3), and item 19 under subsection 118(4)) set out the new maximum accommodation charges for different categories of post 2008-reform residents who re-enter care between 20 March 2017 and 20 September 2017. These categories are differentiated by their entry date into care, whether they receive an income support payment, and whether the service they re-enter meets certain building requirements. The Amending Principles impose specific obligations on approved providers of aged care services who are eligible to receive subsidy payments under the Aged Care (Transitional Provisions) Act 1997 (the Transitional Provisions Act). These obligations include adherence to the updated maximum accommodation charges specified in the Amending Principles. Approved providers must ensure that any charges for accommodation made to continuing care recipients who re-enter care between 20 March 2017 and 20 September 2017 comply with the new rates stipulated in the Amending Principles. This includes correctly applying the new daily accommodation charges of $19.52, $35.90, or $30.17, depending on the care recipient's specific circumstances. Accurate record-keeping and billing practices are essential to ensure compliance with these updated charges. There are no specific offences, penalties, or civil or criminal consequences outlined for breaches of the Amending Principles themselves. However, any failure by approved providers to comply with the updated maximum accommodation charges could potentially lead to disputes with care recipients or regulatory scrutiny. While the Amending Principles do not explicitly state penalties for non-compliance, the broader legislative framework under the Aged Care Act 1997 and the Aged Care Quality and Safety Commission's regulatory oversight may impose sanctions for non-compliance. This could include fines, sanctions, or other regulatory actions under the broader aged care legislation. The Amending Principles are compatible with human rights as they maintain the value of payments made to ensure the adequate standard of living and the highest attainable standard of physical and mental health for care recipients. This compatibility is recognised under the International Covenant on Economic, Social and Cultural Rights and the Convention on the Rights of Persons with Disabilities. The legislative instrument ensures that the updated charges account for inflation, thereby preserving the real value of the subsidies and supplements provided to approved providers, which in turn supports the provision of quality care to those in need.

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Area of Law
Elder Law
Instrument
Regulation
Concepts
Commencement Provisions
Regulatory Standards
Subsidies & Supplements

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