EXPLANATORY STATEMENT
Issued by the authority of the Assistant Minister for Social Services
Aged Care (Transitional Provisions) Act 1997
Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (September 2014 Indexation) Determination 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 came into 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.
The Transitional Provisions Act also allows the Minister to determine, by legislative instrument, the amounts of subsidy and supplements.
The purpose of the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (September 2014 Indexation) Determination 2014 (the Amending Determination) is to increase the amount of supplements payable to approved providers of aged care services in line with the changes to the consumer price index (CPI).
The Amending Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
Routine indexation of subsidies and supplements in this determination is calculated through the use of a well-established formula based on the consumer price index (CPI) as a measure of the movements in the non-labour costs of providers. As this is in accordance with the general policy for indexation of aged care payments upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this indexation.
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) (Subsidy and Other Measures) Amendment (September 2014 Indexation) Determination 2014
Clause 1 states that the name of the determination is the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (September 2014 Indexation) Determination 2014.
Clause 2 sets out the commencement dates the Amending Determination.
Clause 3 provides that the authority for the making of the determination is the Aged Care (Transitional Provisions) Act 1997.
The authority for making specific determinations is set out in the following table:
Subsidy, supplement or reduction in subsidy | Authority in Transitional Provisions Act |
Accommodation supplement | subsection 44-5A(3) |
Concessional resident supplement | subsection 44-6(4) |
Charge exempt resident supplement | subsection 44-8A(3) |
Respite supplement | subsection 44-12(3) |
Transitional supplement | subsection 44-16(3) |
Transitional accommodation supplement | subsection 44-16(3) |
Pensioner supplement | subsection 44-28(7) |
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) (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 accommodation supplement;
- the concessional resident supplement;
- the charge exempt resident supplement;
- the respite supplement;
- the transitional supplement;
- the transitional accommodation supplement; and
- the pensioner supplement.
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 (September 2014 Indexation) Determination 2014
The Aged Care (Transitional Provisions)(Subsidy and Other Measures) Amendment (September 2014 Indexation) Determination 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 Legislative Instrument
This legislative instrument amends the Aged Care (Transitional Provisions) (Subsidy and Other Measures)Amendment (September 2014 Indexation) Determination 2014 and increases the amount of particular supplements payable to approved providers of aged care services in line with the changes to the consumer price index (CPI).
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 concerns 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.
Specifically, this legislative instrument increases the amounts of additional payments in the form of supplements that are payable to approved providers to assist with the costs of caring for certain groups including people who are financially disadvantaged.
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.
Senator the Hon Mitch Fifield
Assistant Minister for Social Services