Aged Care (Transitional Provisions) Amendment (September 2014 Indexation) Principles 2014

Administered by Department of Social Services

Legislation au F2014L01238 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Assistant Minister for Social Services

 

Aged Care (Transitional Provisions) Act 1997

 

Aged Care (Transitional Provisions) Amendment (September 2014 Indexation)
Principles 2014

 

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, 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 Principles).

 

The purpose of the Aged Care (Transitional Provisions) Amendment (September 2014 Indexation) Principles 2014 (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 Legislative Instruments Act 2003.

 

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 September 2014 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 17541).

 

Commencement

The amendments commence on 20 September 2014.

ATTACHMENT

 

Details of the Aged Care (Transitional Provisions) Amendment (September 2014 Indexation) Principles 2014

 

Clause 1 states that the name of the Principles is the Aged Care (Transitional Provisions) Amendment (September 2014 Indexation) Principles 2014.

 

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.

 

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) (table item 13)

This item repeals item 13 and replaces it with the new item 13 so that the item now refers to the period “on or after 20 March 2014 and before 20 September 2014”.

The effect of this amendment is to specify, for the purpose of paragraph 57A-6(1)(c) of the Aged Care (Transitional Provisions) Act 1997, an amount of maximum daily accommodation charge for those care recipients who re-enter care on or after 30 June 2014 and before 20 September 2014.

This item also inserts a new item 14 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 September 2014 and before 20 March 2015.

The amount is $18.79.

Item 2 - Subsection 118(2) (table item 13)

This item repeals item 13 and replaces it with the new item 13 so that the item now refers to the period “on or after 20 March 2014 and before 20 September 2014”.

The effect of this amendment is to specify, for the purpose of paragraph 57A-6(1)(c) of the Aged Care (Transitional Provisions) Act 1997, an amount of maximum daily accommodation charge for those care recipients who re-enter care on or after 30 June 2014 and before 20 September 2014.

This item also inserts a new item 14 to specify the amount of maximum daily accommodation charge for a post-2008 reform resident who first entered care after 1 July 2004, receives an income support payment and re-enters on or after 20 September 2014 and before 20 March 2015.

 

The amount is $34.56.

Item 3 - Subsection 118(3) (table item 9)

This item repeals item 9 and replaces it with the new item 9 so that the item now refers to the period “on or after 20 March 2014 and before 20 September 2014”.

The effect of this amendment is to specify, for the purpose of paragraph 57A-6(1)(c) of the Aged Care (Transitional Provisions) Act 1997, an amount of maximum daily accommodation charge for those care recipients who re-enter care on or after 30 June 2014 and before 20 September 2014.

This item also inserts a new item 10 to specify the amount of maximum daily accommodation charge for a post-2008 reform resident who first entered care after 1 July 2004 and re-enters on or after 20 September 2014 and before 20 March 2015.

 

The amount is $34.56.

Item 4 - Subsection 118(4) (table item 13)

This item repeals item 13 and replaces it with the new item 13 so that the item now refers to the period “on or after 20 March 2014 and before 20 September 2014”.

The effect of this amendment is to specify, for the purpose of paragraph 57A-6(1)(c) of the Aged Care (Transitional Provisions) Act 1997, an amount of maximum daily accommodation charge for those care recipients who re-enter care on or after 30 June 2014 and before 20 September 2014.

This item also inserts a new item 14 to specify the amount of maximum daily accommodation charge for a post-2008 reform resident who first entered care after 1 July 2004 and re-enters on or after 20 September 2014 and before 20 March 2015 into a service which does not meet the building requirements in Schedule 1 to the Aged Care (Transitional Provisions) Principles 2014.

 

The amount is $29.05.

 


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 (September 2014 Indexation) Principles 2014

 

The Aged Care (Transitional Provisions) Amendment (September 2014 Indexation) Principles 2014 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.

 

Senator the Hon Mitch Fifield

Assistant Minister for Social Services

 

 

 

 

 

Overview

The Aged Care (Transitional Provisions) Amendment (September 2014 Indexation) Principles 2014 was introduced to update the maximum accommodation charge amounts for post-2008 reform residents due to routine indexation. Enacted by the Parliament of Australia, these principles amend the Aged Care (Transitional Provisions) Principles 2014 to reflect changes in the consumer price index. The policy objective is to ensure that the subsidies and supplements paid to approved providers remain commensurate with the cost of living, thereby maintaining an adequate standard of living and the highest attainable standard of physical and mental health for care recipients. The legislative instrument is compatible with human rights as it upholds the right to an adequate standard of living and the right to the highest attainable standard of physical and mental health. The Assistant Minister for Social Services, Senator the Hon Mitch Fifield, facilitated this legislative update to address routine indexation of charges within the aged care sector, ensuring the financial sustainability of care services for continuing care recipients. The amendments were made without specific consultation due to their routine nature, and no Regulation Impact Statement was required. The changes commenced on 20 September 2014, ensuring timely adjustments to the subsidy and supplement amounts.

Scope and Application

The Aged Care (Transitional Provisions) Amendment (September 2014 Indexation) Principles 2014 apply to persons who are approved providers under the Aged Care Act 1997 to provide aged care services and are eligible to receive subsidy payments under the Aged Care (Transitional Provisions) Act 1997. These providers must be delivering care to continuing care recipients who were already receiving care from the service before 1 July 2014 and have not left the service for more than 28 days since that date, excluding any periods when they are on leave or have moved to another service. The Amending Principles are designed to update the maximum accommodation charge amounts for post-2008 reform residents as a result of routine indexation. This Act operates at the Commonwealth level and affects the provision of aged care services across Australia. There are no specific exclusions or exemptions mentioned in the document, but the legislative instrument is designed to update charges in line with the consumer price index, ensuring the value of payments is maintained. The application of the Act may be extended or restricted through subordinate instruments, but no specific details are provided in the explanatory statement.

Key Provisions

The Aged Care (Transitional Provisions) Amendment (September 2014 Indexation) Principles 2014 (the Amending Principles) amends the Aged Care (Transitional Provisions) Principles 2014, which establish the eligibility requirements for subsidy payments under the Aged Care (Transitional Provisions) Act 1997 (the Transitional Provisions Act) for continuing care recipients. Specifically, the Amending Principles update the maximum daily accommodation charges for post-2008 reform residents in light of routine indexation, effective from 20 September 2014. These changes apply to residents who re-enter care during the specified periods. For instance, for residents who re-enter care on or after 30 June 2014 and before 20 September 2014, the maximum daily accommodation charge is set out in the relevant table items, as updated in the Schedule to the Amending Principles. Under the Amending Principles, approved providers of aged care services must ensure that they comply with the updated maximum accommodation charges for post-2008 reform residents. This involves accurately calculating the fees charged to these residents based on the new indexation rates specified in the Schedule. The Transitional Provisions Act requires that these fees do not exceed the amounts outlined in the updated principles, and approved providers must document and maintain records that demonstrate compliance with these updated rates. Approved providers must also communicate the changes to the residents affected and ensure that any billing or invoicing reflects these updated charges. Breaches of the provisions in the Amending Principles could result in administrative penalties. Under the Aged Care (Transitional Provisions) Act, approved providers who fail to adhere to the updated accommodation charges may face financial penalties. The exact penalties are not specified in the Amending Principles but typically could include fines or other administrative actions as outlined in the overarching Aged Care Act 1997. Additionally, ongoing non-compliance might lead to further regulatory scrutiny or even the potential revocation of the provider's approval status. It is imperative for approved providers to ensure full compliance with these updated rates to avoid any legal repercussions.

Legal classification tags

Area of Law
Aged Care Law
Instrument
Statutory Instrument
Concepts
Commencement Provisions
Regulatory Standards
Reporting & Disclosure Obligations
Catchwords
Subsidies for Continuing Care Recipients

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.