Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018

Administered by Department of Health, Disability and Ageing

Legislation au F2018L01299 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

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

Minister for Indigenous Health

 

Aged Care (Transitional Provisions) Act 1997

 

Aged Care (Transitional Provisions) Amendment (September 2018 Indexation)
Principles 2018

 

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 961 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.

 

 The Aged Care (Transitional Provisions) Principles 2014 (the Transitional Provisions Principles) are made under section 961 of the Transitional Provisions Act.

 

The purpose of the Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 (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 2018.

 

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 2018 will be disseminated via electronic media to approved providers.

 


ATTACHMENT

 

Details of the Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018

 

Section 1 states that the name of the instrument is the Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 (the Amending Principles).

 

Section 2 sets out the commencement date for the instrument.

 

Section 3 provides that the authority for the making of the instrument is section 961 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 instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the instrument has effect according to its terms.

 

Schedule 1 – Amendments

 

Aged Care (Transitional Provisions) Principles 2014

 

Item 1 – Subsection 118(1) (after table item 20)

This item inserts a new item 21 in the table in 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 2018 and before 20 March 2019.

The amount is $20.05

Item 2 Subsection 118(2) (after table item 20)

This item inserts a new item 21 in the table in 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 2018 and before 20 March 2019.

The effect of this amendment is to specify, for the purpose of paragraph 57A6(1)(c) of the Transitional Provisions Act, an amount of maximum daily accommodation charge for these care recipients.

The amount is $36.88

Item 3 Subsection 118(3) (after table item 16)

This item inserts a new item 17 in the table in 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 reenters on or after 20 September 2018 and before 20 March 2019 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 57A6(1)(c) of the Transitional Provisions Act, an amount of maximum daily accommodation charge for these care recipients.

The amount is $36.88

Item 4 Subsection 118(4) (after table item 20)

This item inserts a new item 21 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 reenters on or after 20 September 2018 and before 20 March 2019 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 57A6(1)(c) of the Transitional Provisions Act, an amount of maximum daily accommodation charge for these care recipients.

The amount is $30.99

 


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 2018 Indexation) Principles 2018

 

The Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 (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 Senior Australians and Aged Care and

Minister for Indigenous Health,

the Hon Ken Wyatt AM, MP

 

Overview

The Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 were enacted to address the need for updating the specified amount of maximum accommodation charge for post-2008-reform residents in residential aged care facilities, as a result of routine indexation. This legislative instrument was introduced by the Australian government, under the authority of the Minister for Senior Australians and Aged Care and Minister for Indigenous Health. The policy objective of this amendment is to ensure that the value of payments made to approved providers for the care of continuing care recipients is maintained, thus promoting their right to an adequate standard of living and the highest attainable standard of physical and mental health. The Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 were made under section 96-1 of the Aged Care (Transitional Provisions) Act 1997 and are compatible with human rights as they consider the impact on the recipients of aged care services. The Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 serve 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. This amendment ensures that the payments made to approved providers for the care of continuing care recipients are in line with the changes in the consumer price index, thus maintaining the value of these payments. The Minister for Senior Australians and Aged Care and Minister for Indigenous Health, the Hon Ken Wyatt AM, MP, introduced this legislative instrument to ensure the continued provision of quality aged care services to those who require assistance to achieve and maintain the highest attainable standard of physical and mental health. The instrument 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.

Scope and Application

The Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 applies to approved providers of aged care services who are eligible to receive subsidy payments under the Aged Care (Transitional Provisions) Act 1997 for the care they provide to continuing care recipients. These recipients are individuals who have been in the aged care service continuously since before 1 July 2014 or who have moved to another service but have not chosen to be subject to the new rules for fees and payments that took effect on that date. The Principles aim to update the maximum accommodation charge for post-2008 reform residents based on routine indexation, which is reflected in the adjustments made to the maximum daily accommodation charges for different categories of residents. The changes, which came into effect on 20 September 2018, are intended to maintain the value of payments made to approved providers in line with changes in the consumer price index. The Principles do not apply to new care recipients who have not been in an aged care service before 1 July 2014 or who have chosen to be subject to the new rules for fees and payments. The scope of the Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 is national, applying across Australia. The Principles are made under section 96-1 of the Aged Care (Transitional Provisions) Act 1997 and are a legislative instrument for the purposes of the Legislation Act 2003. The authority to make the Principles is also supported by subsection 33(3) of the Acts Interpretation Act 1901, which allows for the repeal, rescission, revocation, amendment, or variation of any legislative instrument. There are no specific exclusions, exemptions, or thresholds outlined in the Principles; however, the application of these Principles is contingent on the recipients' eligibility under the Aged Care (Transitional Provisions) Act 1997. Information about these changes will be disseminated to relevant parties via electronic media.

Key Provisions

The Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 amends the Aged Care (Transitional Provisions) Principles 2014 to update the maximum daily accommodation charges for post-2008 reform residents in residential aged care facilities, effective from 20 September 2018. These updates are a result of routine indexation to reflect changes in the consumer price index. Section 1 identifies the instrument as the Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018, while Section 2 establishes the commencement date for the instrument. Section 3 clarifies that the authority for making this instrument is derived from section 96-1 of the Aged Care (Transitional Provisions) Act 1997. Under the Act, approved providers of aged care services are eligible to receive subsidy payments for the care they provide to continuing care recipients. These are individuals who entered an aged care service before 1 July 2014 and have remained in the service without leaving for more than 28 consecutive days, apart from temporary leave, or who 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. The Amending Principles set out new maximum daily accommodation charges for different categories of post-2008 reform residents, which are detailed in Schedule 1. Approved providers must ensure they are aware of and comply with the updated maximum accommodation charges specified in the Amending Principles. They are required to accurately calculate and charge the correct accommodation fees to eligible residents based on their category and the effective dates provided. Approved providers must also keep accurate records of these charges and be prepared to provide documentation to support their billing practices if required by the Department of Health or any other relevant authority. Breaches of the requirements under the Aged Care (Transitional Provisions) Act 1997 and the Aged Care (Transitional Provisions) Amendment (September 2018 Indexation) Principles 2018 may result in penalties and other consequences. While the Amending Principles themselves do not specify penalties, non-compliance with the broader Act and its associated regulations can lead to financial penalties, enforcement actions, or even the suspension or termination of approval to provide aged care services. The severity of the penalties depends on the nature and extent of the breach, with potential fines and other administrative actions possible.

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