Allocation Amendment Principles 2005 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2005L04229 Not in force Legislative Instrument

Legislation content

 

 

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.

 

 

Overview

The Allocation Amendment Principles 2005 (No. 1) were introduced to amend the Aged Care Act 1997, providing for the funding of aged care services. Enacted by the Australian Government, these principles address the need for increased high care respite availability, particularly in areas with the greatest demand, as part of the Recognising Senior Australians: Their Needs and Their Carers Budget Measure. The policy objective is to encourage aged care providers to make respite bed days available for high-level recipients by offering an additional $28 per respite resident per day to those who dedicate at least 70% of their respite allocations for respite care. The principles were developed in consultation with industry and are intended to ensure that any variations in the conditions of allocation do not reduce overall respite care levels in a region. The legislative amendments are designed to assist in implementing the budget measure by modifying the conditions under which approved providers can vary their respite care allocations. The Allocation Amendment Principles 2005 (No. 1) should be read in conjunction with other related legislative amendments, including those to the Residential Care Subsidy Principles and a new determination made by the Minister. These measures collectively aim to support the additional funding initiative and ensure that the intended benefits are achieved without diminishing the availability of residential respite care in any region. The principles are a legislative instrument under the Legislative Instruments Act 2003 and were deemed not to require a regulation impact statement by the Office of Regulation Review. They came into force on 1 January 2006.

Scope and Application

The Aged Care Act 1997 is a Commonwealth Act that governs the funding and provision of aged care services in Australia, with the Allocation Amendment Principles 2005 (No. 1) being a legislative instrument designed to enhance and refine certain aspects of this framework. These principles specifically apply to Approved Providers who are eligible to receive residential care subsidy payments for the care they provide to approved care recipients. The 2005 amendments, which came into effect on 1 January 2006, were introduced to address the need for increased high care respite availability and were designed to ensure that aged care homes providing more respite bed days for high-level recipients are rewarded with additional funding. The measures were implemented in response to a Budget Measure announced in the 2005 Budget, aiming to boost residential respite funding and fulfill the government’s election commitment to better support senior Australians and their carers. These principles do not specify exclusions or exemptions but rather extend the application of the Act through additional considerations for variations in the conditions of allocations, ensuring that any changes do not reduce the overall availability of respite care within a region.

Key Provisions

The Aged Care Act 1997 (the "Act") is the primary legislation governing the funding of aged care services in Australia. Under this Act, Approved Providers of residential aged care services can receive subsidy payments for the care they provide to approved care recipients. The Allocation Amendment Principles 2005 (No. 1) provide additional considerations for the Secretary when deciding whether to approve variations to the conditions of an allocation. Specifically, subsection 4.70(1A) of Part 8 of the Allocation Principles requires the Secretary to take into account the extent to which current and future care recipients in the region will have access to respite care. This amendment ensures that the overall levels of respite within a region are not reduced. These amendments are part of a package of measures to implement the Residential Respite Funding Boost announced in the 2005 Budget. The 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. The Act imposes several obligations and requirements on the parties it governs. Approved Providers must meet the eligibility requirements for the subsidy, including how it is paid and what amount is paid. The Residential Care Subsidy Principles provide the eligibility requirements for the subsidy, including how it is paid and what amount is paid. They also include requirements for the respite supplement. Additionally, Approved Providers must provide 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. 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. Breach of the obligations and requirements of the Act may result in civil or criminal consequences. The maximum penalties for breach are not stated in the explanatory statement, but may vary depending on the nature and severity of the breach. The Act provides for the imposition of financial penalties for breaches of the eligibility requirements for the subsidy. Additionally, the Act provides for the imposition of criminal penalties for breaches of the provisions relating to the provision of care to recipients of respite care. The explanatory statement does not provide information on any offences, penalties, or civil/criminal consequences for breach of the Allocation Amendment Principles 2005 (No. 1) specifically. However, it is likely that breach of these Principles may result in consequences similar to those for breach of the Act.

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