EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Certification Amendment Principles 2008 (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.
Subsection 96-1(1) of the Act allows the Minister to make Principles providing for various matters required or permitted by a Part or section of the Act.
The Certification Principles 1997 (the Certification Principles) is one of the sets of Principles made under the Act.
The purpose of the Certification Amendment Principles 2008 (No. 1) (the Amending Principles) is detailed below. The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Certification Amendment Principles 2008 (No. 1)
The Aged Care Amendment (2008 Measures No. 1) Act 2008 amended the Act and related legislation to simplify, and make fairer, the fees and charges paid by residents of aged care facilities as well as the subsidies paid by the Commonwealth Government for residents who cannot fully meet their own care and accommodation costs.
One of the changes that was made to the Act (in order to give effect to the new system of fees and charges) was the creation of a new type of supplement known as the ‘accommodation supplement’. As the result of the creation of this new supplement, consequential changes were required throughout the Act and are also required throughout the Aged Care Principles.
The purpose of these Amending Principles is to include a reference to the new accommodation supplement alongside the existing references to the concessional resident supplement and the charge exempt resident supplement in the Certification Principles.
Consultation
The Department of Health and Ageing undertook extensive consultation on the policy that is implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 which amends the Act. These Amending Principles flow from these amendments.
Details of the amendments to the Principles are listed at Attachment A.
ATTACHMENT A
NOTES ON CLAUSES
Clause 1 states that the name of the amending Principles is the Certification Amendment Principles 2008 (No. 1).
Clause 2 states that the Principles commence on 20 March 2008.
Clause 3 states that Schedule 1 amends the Certification Principles.
Schedule 1 Amendments
Item 1
This is a consequential amendment that results from the creation of the new accommodation supplement.
This item amends the note at the commencement of the Certification Principles to provide that only if a residential care service has been certified under Part 2.6 of the Act, may an approved provider:
(a) charge an accommodation bond or charge; and
(b) receive an accommodation supplement, a concessional resident supplement or a charge exempt resident supplement.