EXPLANATORY STATEMENT
Issued by the authority of the Minister for Aged Care
Aged Care (Transitional Provisions) Act 1997
Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2016
The Aged Care (Transitional Provisions) Act 1997 (the TP 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 TP 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.
The purpose of the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2016 (the Amending Determination) is to increase the amount of subsidies and supplements payable to approved providers of aged care services.
Authority
The authority for making specific determinations is set out in the following table:
Residential Section | |
Basic subsidy | subsection 44-3(2) |
Accommodation supplement | subsection 44-5A(3) |
Concessional resident supplement | subsection 44-6(4) |
Charge exempt resident supplement | subsection 44-8A(3)(b) |
Oxygen supplement | subsection 44-13(6) |
Enteral feeding supplement | subsection 44-14(6) |
Additional primary supplements | subsection 44-16(3) |
Adjusted subsidy reduction | subsection 44-19(2) |
Hardship supplement | subsection 44-30(5) |
Veterans’ supplement | subsection 44-27(3) |
Homeless supplement | subsection 44-27(3) |
Home care | |
Basic subsidy amount | subsection 48-1(3) |
Top-up supplement | subsection 48-1(3) |
Viability supplement | subsection 48-1(3) |
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 subsidies and supplements in this Amending Determination is calculated through the use of a well-established formula based on the relevant wage and price indices. This Amending Determination gives effect to routine indexation adjusted to reflect the Government’s 2016-17 Budget announcement. Accordingly, no specific consultation was undertaken with respect to this indexation.
Regulation Impact Statement
The Office of Best Practice Regulation (OBPR) has advised that no Regulation Impact Statement is required to set routine indexation (OBPR ID 17541) or to make changes in line with the Amending Bill (OBPR 18406).
Commencement
The Amending Determination commences on 1 July 2016.
The Amending Determination is a legislative instrument for the purposes of the Legislation Act 2003.
ATTACHMENT
Details of the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2016
Clause 1 states that the name of the determination is the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2016.
Clause 2 sets out the commencement date for the Amending Determination.
Clause 3 provides that the authority for the making of the determination is the Aged Care (Transitional Provisions) Act 1997.
Clause 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 this instrument has effect according to its terms.
Schedule 1 – Indexation
Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014
Item 1 – Amendment of listed provisions – indexation of amounts of supplements
This item provides for the indexation of amounts in relation to the following supplements:
- the oxygen supplement;
- the enteral feeding supplement;
- the veterans’ supplement;
- the homeless supplement
- the adjusted subsidy reduction; and
- the top-up supplement.
Item 2 – Subsection 8(3) (table)
This item provides for the indexation of amounts in relation to the ACFI amounts by repealing the table to subsection 8(3) and substituting a new table with the indexed amounts.
Item 3 – Subsection 10(3) (table)
This item provides for the indexation of amounts in relation to the RCS amounts by repealing the table to subsection 10(3) and substituting a new table with the indexed amounts.
Item 4 – Section 83 (table)
This item provides for the indexation of amounts in relation to the basic subsidy amount for home care by repealing the table to section 83 and substituting a new table with the indexed amounts.
Item 5 – Section 85 (table)
This item provides for the indexation of amounts in relation to the amount of viability subsidy for home care by repealing the table to section 85 and substituting a new table with the indexed amounts.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (Indexation) Determination 2016
The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2016 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 Legislative Instrument
This legislative instrument amends the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014 and increases the amount of particular subsidies and supplements payable to approved providers of aged care services.
Human Rights Implications
This legislative instrument is compatible with the right to an adequate standard of living and the right to 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 increases the amount of residential care subsidy payable 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.
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.
The Hon Sussan Ley
Minister for Aged Care