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

Administered by Department of Health, Disability and Ageing

Legislation au F2017L01190 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 (September 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 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 came into effect on 1 July 2014.

 

Section 96‑1 of the Transitional Provisions Act allows the Minister to make Aged Care (Transitional Provisions) 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 (September 2017 Indexation) Principles 2017 (the Amending Principles) is to amend 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.

 

The Amending Principles are a legislative instrument for the purposes of the Legislation Act 2003.

 

Commencement

The Amending Principles commence on 20 September 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 September 2017 will be disseminated via electronic media to approved providers.

 


ATTACHMENT

 

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

 

Section 1 states that the name of the principles is the Aged Care (Transitional Provisions) Amendment (September 2017 Indexation) Principles 2017 (the Amending Principles).

 

Section 2 sets out the commencement date for the Amending Principles.

 

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

 

Section 4 provides that each instrument that is specified in a Schedule to the Amending Principles is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Amending Principles has effect according to its terms.

 

Schedule 1 – Amendments

 

Aged Care (Transitional Provisions) Principles 2014

 

Item 1 – Subsection 118(1) (after table item 19)

This item inserts a new item 20 in the table to subsection 118(1) 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 2017 and before 20 March 2018.

The amount is $19.64.

Item 2 – Subsection 118(2) (after table item 19)

This item inserts a new item 20 in the table to subsection 118(2) 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 September 2017 and before 20 March 2018.

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 these care recipients.

The amount is $36.13.

Item 3 – Subsection 118(3) (after table item 15)

This item inserts a new item 16 in the table to subsection 118(3) 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 September 2017 and before 20 March 2018 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 these care recipients.

The amount is $36.13.

Item 4 – Subsection 118(4) (after table item 19)

This item inserts a new item 20 in the table to subsection 118(4) 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 September 2017 and before 20 March 2018 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 these care recipients.

The amount is $30.36.

 


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 2017 Indexation) Principles 2017

 

The Aged Care (Transitional Provisions) Amendment (September 2017 Indexation) Principles 2017 (the Principles) are 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 amend the Aged Care (Transitional Provisions) Principles 2014 to update the specified amount of maximum accommodation charge for a post 2008-reform resident in a residential aged care facility 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 (September 2017 Indexation) Principles 2017 were enacted to amend the Aged Care (Transitional Provisions) Principles 2014, updating the maximum accommodation charges for post-2008 reform residents in residential aged care facilities as a result of routine indexation. This legislation is a response to the need for periodic adjustments to the charges to reflect changes in the cost of living, ensuring that the payments to approved providers remain consistent with the consumer price index. The Aged Care (Transitional Provisions) Act 1997 and the Aged Care Act 1997 form the legislative framework within which these amendments are made, and the policy objective is to maintain the value of payments in line with economic changes. The principles were made under the authority of the Minister for Aged Care and the Minister for Indigenous Health, and they are 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. Information about the updated subsidies and supplements will be disseminated electronically to approved providers.

Scope and Application

The Aged Care (Transitional Provisions) Amendment (September 2017 Indexation) Principles 2017 applies to approved providers who offer aged care services to continuing care recipients, specifically those who entered a service prior to 1 July 2014 and have not left the service for more than 28 days since then. The Act allows for the updating of subsidy payments to these providers, ensuring the accommodation charges are reflective of the routine indexation and maintain the value of payments. The Amending Principles adjust the maximum accommodation charge amounts for different categories of post-2008 reform residents based on their entry date into care and their income support status. These principles are a part of the broader Aged Care (Transitional Provisions) Act 1997 and the Aged Care Act 1997, which together provide for the funding of aged care services. The legislation applies nationally across Australia and includes no specific exclusions, although it is subject to amendment or variation through subordinate instruments as necessary. The Amending Principles, which amend the Aged Care (Transitional Provisions) Principles 2014, commenced on 20 September 2017. They are made under the authority of section 96-1 of the Transitional Provisions Act and specify new maximum daily accommodation charges for various categories of post-2008 reform residents. These principles ensure that the value of payments to approved providers is maintained in line with movements in the consumer price index, thereby supporting the human right to an adequate standard of living and the highest attainable standard of physical and mental health as recognised in international human rights instruments. The compatibility of these principles with human rights has been affirmed, ensuring they support the needs of elderly individuals with conditions of frailty or disability.

Key Provisions

The Aged Care (Transitional Provisions) Amendment (September 2017 Indexation) Principles 2017 (Amending Principles) make amendments to the Aged Care (Transitional Provisions) Principles 2014 (Transitional Provisions Principles) to update the maximum accommodation charges for post-2008 reform residents in residential aged care facilities due to routine indexation. The Amending Principles, which commenced on 20 September 2017, were made under section 96-1 of the Aged Care (Transitional Provisions) Act 1997 (Transitional Provisions Act) and are effective by virtue of subsection 33(3) of the Acts Interpretation Act 1901. The Principles specify new maximum daily accommodation charges for various categories of post-2008 reform residents re-entering care between 20 September 2017 and 20 March 2018. Approved providers of aged care services, who are eligible to receive subsidy payments under the Transitional Provisions Act for care provided to continuing care recipients, must adhere to the updated accommodation charge amounts specified in the Amending Principles. These providers are required to ensure that the charges they levy on eligible residents do not exceed the amounts set out in the Amending Principles for the specified periods. This includes accurately calculating and applying the new rates to the appropriate resident categories, which are determined based on the date of first entry into care, receipt of an income support payment, and whether the service meets specific building requirements. Failure to comply with the updated accommodation charges as specified in the Amending Principles may result in financial discrepancies or potential legal challenges from residents. However, the Amending Principles do not explicitly outline specific offences, penalties, or consequences for non-compliance. Generally, breaches of the Transitional Provisions Act or its subsidiary instruments could lead to administrative actions, such as financial penalties or corrective measures imposed by the relevant authorities. It is important for approved providers to stay informed about changes to the legislation to avoid any inadvertent non-compliance.

Legal classification tags

Area of Law
Aged Care
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Regulatory Standards

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.