EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Allocation Amendment Principles 2005 (No. 1)
The Aged Care Act 1997 (“the Act”) provides for the funding of aged care services. Persons who are approved under the Act to provide residential aged care services (“Approved Providers”) can be eligible to receive residential care subsidy payments in respect of the care they provide to approved care recipients.
In the 2005 Budget, the Australian Government announced a Residential Respite Funding Boost as a component of the Recognising Senior Australians: Their Needs and Their Carers Budget Measure. The Funding Boost is intended to “encourage and reward” aged care homes which make respite bed days available for high level recipients, and to increase high care respite availability where there is greatest demand. This Measure delivers on the Australian Government’s election commitment Recognising Senior Australians – Their Needs and Their Carers: Caring for Carers.
The Budget Measure states that the Australian Government will:
‘provide an extra $28 per respite resident per day to aged care providers who dedicate at least 70 per cent of their respite allocations (sic) for respite care’.
These amendments are part of a package of measures to implement this Budget Measure.
Subsection 96-1(1) of the Act allows the Minister to make Principles providing for matters required or permitted by a Part or section of the Act to be provided, or necessary or convenient to be provided, in order to carry out or give effect to that Part or section.
The Allocation Principles 1997 are one of several sets of Principles which have been made under the Act. The Allocation Principles deal with a number of aspects of the allocation of places to an approved provider through which aged care is provided. Providers may apply to vary their conditions of allocation under Division 17 of the Act.
Part 8 of the Allocation Principles deals with variations of conditions of places, and Division 2 of Part 8 specifies the matters that the Secretary must take into account in deciding whether any proposals in respect of places being relinquished, are satisfactory.
Providers could vary their conditions of allocation to attract the additional $28 of respite supplement by applying for a reduction in the total amount of respite they are required to provide. It is important that this measure does not result in a reduction of residential respite in a region.
The Allocation Amendment Principles 2005 (No. 1) amend section 4.70 of Part 8 of the Allocation Principles to provide an additional matter for the Secretary to consider in deciding whether the variation of conditions of an allocation is justified in the circumstances. The additional matter is the extent to which current and future care recipients in the region will have access to respite care. These amendments provide that the Secretary must consider the effect of the proposed variation on the provision of respite within a region. This will assist in ensuring that the overall levels of respite within a region are not reduced.
The Budget Measure will also be implemented through amendments to the Residential Care Subsidy Principles, which provide the eligibility requirements for the subsidy, including how it is paid and what amount is paid. They include requirements for the respite supplement. Amendments to section 21.19 of Part 7 of the Residential Care Subsidy Principles specify the proportion that the Minister’s determination of different amounts of the respite supplement may be based upon, namely, the extent to which the approved provider has provided care to recipients of respite care, as a proportion of the conditions of allocation attached to the places allocated to that service in relation to respite care.
A new Determination made by the Minister under section 44-12 of the Act will also be made as part of the package of measures to provide for the additional $28 of respite supplement to be payable in respect of high care respite where a provider provides more than 70% of the amount of respite they are required to provide.
The Allocation Amendment Principles (No.1) should be read alongside the amendments to the Residential Care Subsidy Principles and the new Determination.
The Allocation Amendment Principles 2005 (No. 1) will come into force on 1 January 2006.
Industry has been consulted in December 2005 through the Aged Care Advisory Committee. ACAC greatly welcomed the Budget Measure, in recognition of the need for increased residential respite which will be achieved through the new payment. They were supportive of the implementation approach and payment methodology which are expressed through this package of legislative amendments.
The Allocation Amendment Principles 2005 (No. 1) are a “legislative instrument” for the purposes of the Legislative Instruments Act 2003.
The Office of Regulation Review has advised the Department that a regulation impact statement is not required.
Details of the Allocation Amendment Principles 2005 (No. 1) are set out in the Attachment.
ATTACHMENT
NOTES ON CLAUSES
Clauses 1 and 2 set out the title of the Amending Principles and their commencement
date (1 January 2006).
Clause 3 amends the Allocation Principles according to the Schedule.
Item 1 of the Schedule provides for the insertion of a new subsection 4.70 (1A). This subsection sets out an additional matter that the Secretary must consider in deciding whether the variation of the conditions of an allocation is justified in the circumstances.
Subsection 4.70 (1A) of the Allocation Principles provides an additional matter for the Secretary to consider in deciding whether a variation of conditions of an allocation is justified in the circumstances. The additional matter is the extent to which current and future care recipients in the region will have access to respite care. This will allow the Secretary to consider, as a relevant consideration, the effect of the proposed variation on the amount of care required to be provided as respite in the region.