EXPLANATORY STATEMENT
Issued by the authority of the Minister for Health and Aged Care
Aged Care Act 1997
Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (Viability Supplement) Determination 2016
Authority
The authority for the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (Viability Supplement) Determination 2016 (the Amending Determination) is subsection 48-1(3) ofthe Aged Care (Transitional Provisions) Act 1997 (the T/P Act) and subsection 33(3) of the Acts Interpretation Act 1901.
Purpose
The purpose of the Amending Determination is to amend the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014 (TP Determination) to give effect to the ‘Aged care provider funding – improving the targeting of the viability supplement for regional aged care facilities’ measure that was announced as part of Budget 2016-17.
Background
The viability supplement is a payment made under the Subsidy Principles 2014 (Subsidy Principles) to improve the capacity of small, rural aged care services to offer quality care to care recipients. The Australian Government’s 2016-17 Budget provided for an extra $102.3 million over four years from 2016-17 to target the viability supplement more effectively to areas of greatest need by replacing the current out-dated remoteness classification system with the more up to date Modified Monash Model (MMM), with effect from 1 January 2017.
Details
The Amending Determination varies the amount of viability supplement for home care payable by cross-referencing the Aged Care (Subsidy, Fees and Payments) Determination 2014.
Consultation
Consultation occurred through the Aged Care Financing Authority’s report Financial Issues Affecting Rural and Remote Provider, which identified greater cost pressures in rural and remote areas and noted that the geographical classification system of the viability supplement in aged care was out-dated and may not be best targeting funding. There were a total of 36 submissions received. Submissions were received from a mix of providers, including not-for-profit, government organisations, regional alliances and peak representative groups.
To support the Budget announcement a fact sheet ‘Changes to the Viability Supplement’ was published on 4 May 2016 providing detail on the Budget measure. Provider peak bodies such as Aged and Community Services Australia, Catholic Health Australia and Leading Age Services Australia made public statements that the changes were welcome.
This Determination commences on 1 January 2017.
This Determination is a legislative instrument for the purposes of the Legislation Act 2003.
Regulation Impact Statement
The Office of Best Practice Regulation (OBPR) has advised that the amendment does not appear to have regulatory impacts on business, community organisations or individuals (OBPR 20306).
EXAMPLE
ATTACHMENT
Details of the Aged Care (Subsidy, Fees and Payments) Amendment (Viability Supplement) Determination 2016
1 Name of Determination
Section 1 states that the name of the amending Determination is Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (Viability Supplement) Determination 2016.
2 Commencement
Section 2 states that these amendments commence on 1 January 2017.
3 Authority
This section provides the authority for making this instrument. This instrument is made under the Aged Care Act 1997.
4 Schedules
This section 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 items in a Schedule to this instrument has effect according to its terms.
Schedule 1 Amendments
Item 1 - Section 81
This item repeals the definition of ARIA. This definition is now redundant as the TP Determination will from 1 January 2017 cross-reference to the Aged Care (Subsidy, Fees and Payments) Determination 2014 (SFP Determination) for viability supplement matters.
Item 2 - Section 85
This item amends section 85. This section now specifies that the amount of the viability supplement in respect of a care recipient is the amount that would apply under Division 2 of Part 4 of Chapter 3 of the Aged Care (Subsidy, Fees and Payments) Determination 2014 if the care recipient were not a continuing care recipient and the viability supplement applied to the care recipient under the Aged Care Act 1997.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2012
The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (Viability Supplement) Determination 2016 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 legislative instrument reflects the 2016–17 Budget measure to improve funding for aged care services in rural and remote areas by using a more modern methodology (the MMM) incorporating more up to date Census data for classifying providers in regional, rural and remote areas. The viability supplement rate will also increase for most remote residential care services.
The Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (Viability Supplement) Determination 2016 amend the TP Determination to vary the amount of viability supplement for home care payable by cross-referencing the Aged Care (Subsidy, Fees and Payments) Determination 2014.
Human rights implications
This legislative instrument concerns the amount of 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. This legislative instrument will result in an increase to the viability supplement payable to some residential care and home care services.
Conclusion
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.
The Hon Sussan Ley
Minister for Aged Care