Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2017

Administered by Department of Health, Disability and Ageing

Legislation au F2017L00716 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) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2017

 

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 2017 (the Amending Determination) is to increase the amount of subsidies and supplements payable to approved providers of aged care services.

 

 

Authority

The authority in the TP Act to make specific determinations in the Amending Determination 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. Accordingly, no specific consultation was undertaken with respect to this indexation.

 

 

Commencement

The Amending Determination commences on 1 July 2017. 

 

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 2017

 

Section 1 states that the name of the determination is the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2017.

 

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

 

Section 3 provides that the authority for the making of the determination is the Aged Care (Transitional Provisions) Act 1997.

 

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 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 2Subsection 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 3Subsection 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 4Section 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.

 

 

 

 

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 2017

 

The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 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 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 Ken Wyatt

Minister for Aged Care and Minister for Indigenous Health

Overview

The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2017 was enacted to increase the amount of subsidies and supplements payable to approved providers of aged care services, as stipulated under the Aged Care (Transitional Provisions) Act 1997. This determination was made by the Minister for Aged Care and Minister for Indigenous Health, pursuant to the authority provided by the Aged Care (Transitional Provisions) Act 1997. The policy objective of the determination is to ensure that the aged care providers continue to receive appropriate financial support for the services they render to continuing care recipients, particularly those who have been receiving care since before 1 July 2014. The determination aims to maintain an adequate standard of living for these recipients, thereby upholding their right to the highest attainable standard of physical and mental health, as recognised under international human rights instruments. The determination addresses the need for regular indexation of subsidies and supplements, ensuring that the financial support provided to aged care providers keeps pace with economic changes, such as wage and price inflation. By increasing the amount of these payments, the determination seeks to support the ongoing provision of quality aged care services. This legislative instrument is deemed compatible with human rights, as it directly contributes to the provision of an adequate standard of living and the enhancement of the health and well-being of aged care recipients. The determination came into effect on 1 July 2017, aligning with the routine indexation process based on established economic indices.

Scope and Application

The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2017 applies to approved providers of aged care services, who are authorised under the Aged Care Act 1997 to deliver care to continuing care recipients. This includes those who were residing in an aged care service prior to 1 July 2014 and have remained there since, excluding periods of absence for leave or transfer to another service, or those who have not chosen to be subject to new fee and payment rules introduced on 1 July 2014. The Determination amends the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014 to index various subsidies and supplements payable to these providers, such as the oxygen, enteral feeding, veterans’, homeless, adjusted subsidy reduction, and top-up supplements, as well as the Aged Care Financing Instrument and Residential Care Subsidy amounts, and the basic subsidy amount for home care. The Determination applies nationally and is consistent with the human rights to an adequate standard of living and the highest attainable standard of physical and mental health as recognised in international covenants. The Determination commenced on 1 July 2017 and is a legislative instrument under the Legislation Act 2003.

Key Provisions

The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (July Indexation) Determination 2017 (section 2) amends the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014, increasing the amount of certain subsidies and supplements payable to approved providers of aged care services. These include the oxygen supplement, enteral feeding supplement, veterans’ supplement, homeless supplement, adjusted subsidy reduction, top-up supplement, the ACFI (Aged Care Financing Instrument) amounts, the RCS (Residential Care Subsidy) amounts, and the basic subsidy amount for home care (Schedule 1). This determination is effective from 1 July 2017 (section 2). Approved providers of aged care services, as defined in the Aged Care Act 1997, must comply with the updated subsidy and supplement amounts set forth in the Amending Determination. They must ensure that the revised rates are applied to the care provided to continuing care recipients. This includes accurately calculating and reporting the new subsidy and supplement amounts in accordance with the amended determination (Aged Care Act 1997 sections 44-3(2), 44-5A(3), 44-6(4), 44-8A(3)(b), 44-13(6), 44-14(6), 44-16(3), 44-19(2), 44-30(5), 44-27(3), 48-1(3)). Failure to comply with the updated subsidy and supplement amounts may result in financial discrepancies or inaccurate reporting, which could lead to audits and potential penalties. While the legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance, the Australian government may take enforcement actions under the Aged Care Act 1997, including fines or other administrative penalties (Aged Care Act 1997 sections 139, 140). The maximum penalties for offences under the Aged Care Act 1997 can reach up to $222,000 for individuals and $1,110,000 for bodies corporate, depending on the severity of the offence (section 141).

Legal classification tags

Area of Law
Aged Care
Instrument
Regulation
Concepts
Commencement Provisions
Indexation
Reporting & Disclosure Obligations
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.