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

Overview

The Aged Care (Transitional Provisions) Act 1997 was enacted to address the funding of aged care services for continuing care recipients, those who were already receiving care in an aged care facility before the introduction of new rules on 1 July 2014. The Act, in conjunction with the Aged Care Act 1997, ensures that approved providers of aged care services receive subsidy payments for the care they provide to these continuing care recipients. It provides a legislative framework for the Minister to determine the eligibility requirements and amounts of subsidy and supplements, as seen in the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (September 2017 Indexation) Determination 2017. This determination, made under the authority of the Aged Care (Transitional Provisions) Act, adjusts the amounts of various supplements payable to approved providers in line with the changes to the consumer price index (CPI). The policy objective is to ensure that the financial support provided to aged care providers keeps pace with inflation, thereby maintaining the quality of care provided to vulnerable elderly individuals. The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (September 2017 Indexation) Determination 2017 was issued by the Minister for Aged Care and Minister for Indigenous Health, the Hon Ken Wyatt AM, MP, to increase the amount of supplements payable to approved providers of aged care services. This determination, which commenced on 20 September 2017, aligns the payments with the CPI, ensuring that the financial burden on providers does not increase disproportionately. This is achieved through a well-established formula, which has been the subject of extensive consultation as part of the general policy for indexation of aged care payments. The determination is compatible with human rights, particularly the right to an adequate standard of living and the highest attainable standard of physical and mental health, as it supports the provision of quality care to those who need it most.

Scope and Application

The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (September 2017 Indexation) Determination 2017 amends the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014, and applies to the subsidy and supplement payments made to approved providers of aged care services under the Aged Care (Transitional Provisions) Act 1997. It specifically affects those approved providers who are providing care to continuing care recipients who were in the care of an approved provider before 1 July 2014 and have not left the service for a continuous period of more than 28 days since that date. The purpose of the Amending Determination is to adjust the amounts of subsidies and supplements payable to approved providers in line with changes in the consumer price index, ensuring that the financial burden on these providers remains consistent with broader economic changes. The Determination came into effect on 20 September 2017, and it is compatible with human rights, particularly the right to an adequate standard of living and the right to the highest attainable standard of physical and mental health, as recognised in various international human rights instruments. The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (September 2017 Indexation) Determination 2017 is a legislative instrument made under the authority of the Aged Care (Transitional Provisions) Act 1997. It targets approved providers of aged care services who provide care to continuing care recipients under the transitional arrangements of the Act. The Determination applies to the indexed amounts of various supplements, including the accommodation supplement, concessional resident supplement, charge exempt resident supplement, respite supplement, transitional supplement, transitional accommodation supplement, and pensioner supplement. These supplements are intended to assist approved providers in meeting the costs associated with providing care to certain groups, particularly those who are financially disadvantaged. The Determination is a Commonwealth instrument and its application is not restricted by state or territory boundaries, thus applying nationally. There are no specific exclusions or exemptions noted within the text, though the applicability is inherently limited to those within the defined scope of the Transitional Provisions Act and its associated determinations.

Key Provisions

The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (September 2017 Indexation) Determination 2017 amends the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014, primarily to adjust the amounts of various subsidies and supplements payable to approved providers of aged care services. These supplements include the 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)), and pensioner supplement (subsection 44-28(7)). The adjustments are made to align with changes to the consumer price index (CPI), ensuring that the financial support provided to these providers keeps pace with inflationary pressures. Approved providers of aged care services, particularly those who are providing care to continuing care recipients, must comply with the requirements of the Amending Determination. This includes understanding and applying the updated subsidy and supplement rates as of 20 September 2017. Continuing care recipients, who are individuals who entered an aged care service before 1 July 2014 and have not left the service for a continuous period of more than 28 days, are also affected by these changes, as the updated rates will impact the level of care and services they receive. Approved providers must ensure that they are aware of the new rates and adjust their billing and service provision accordingly. There are no specific offences, penalties, or consequences for breach outlined in the Amending Determination itself. However, failure to comply with the provisions of the Aged Care (Transitional Provisions) Act 1997 and the Aged Care Act 1997 could potentially result in civil or criminal penalties under those Acts. For example, under the Aged Care Act 1997, an approved provider who fails to comply with their obligations may face fines, termination of their approval, or other administrative actions. Additionally, if the updated subsidy and supplement rates are not correctly applied, it could lead to disputes with the government or legal challenges from affected parties. The Amending Determination is designed to ensure that the financial support provided to approved providers of aged care services remains adequate and relevant, considering the economic factors affecting the aged care sector. By aligning the subsidy and supplement rates with the CPI, the Determination aims to maintain the quality of care and services provided to continuing care recipients, particularly those who are financially disadvantaged. This legislative instrument supports the broader objective of promoting 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.