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.
Overview
The Aged Care Act 1997 provides for the funding of aged care services in Australia, enabling approved providers to receive residential care subsidy payments for the care they offer to approved care recipients. The Aged Care Amendment (2008 Measures No. 1) Act 2008 introduced significant changes to simplify and make fairer the fees and charges for residents of aged care facilities, as well as the subsidies paid by the Commonwealth Government for residents who cannot fully cover their care and accommodation costs. Among these changes was the creation of a new accommodation supplement. The Certification Amendment Principles 2008 (No. 1) were introduced as a legislative instrument under the Legislative Instruments Act 2003 to incorporate these changes into the Certification Principles. The policy objective, as stated in the explanatory statement issued by the Minister for Ageing, is to ensure that the Certification Principles reflect the new accommodation supplement, alongside the existing references to the concessional resident supplement and the charge exempt resident supplement. The Department of Health and Ageing conducted extensive consultation on the policy before these amendments were enacted.
Scope and Application
The Certification Amendment Principles 2008 (No. 1) applies to approved providers of residential aged care services under the Aged Care Act 1997, and concerns the various supplements and charges associated with the provision of such services. The Act is a Commonwealth legislation, thus it has a national jurisdictional reach within Australia. The Amending Principles primarily address the new accommodation supplement created as a result of the Aged Care Amendment (2008 Measures No. 1) Act 2008, which was designed to simplify and make fairer the fees and charges for aged care facility residents. The principles amend the Certification Principles to include a reference to the new accommodation supplement alongside the existing references to the concessional resident supplement and the charge exempt resident supplement. This legislative instrument is subject to further application or restriction through subordinate instruments as deemed necessary by the Minister.
Key Provisions
The main operative sections of the Certification Amendment Principles 2008 (No. 1) focus on modifying the Certification Principles to align with the new legislative changes introduced by the Aged Care Amendment (2008 Measures No. 1) Act 2008. Specifically, Clause 3 and Schedule 1 detail the amendments to the Certification Principles, which now include a reference to the newly introduced 'accommodation supplement' alongside the existing 'concessional resident supplement' and 'charge exempt resident supplement'. This amendment ensures that the principles reflect the changes in the types of supplements available to approved providers under the Aged Care Act 1997.
The Aged Care Act 1997 and its associated principles impose several obligations on approved providers who offer residential aged care services. These obligations include adhering to the certification requirements under Part 2.6 of the Act to be eligible to charge an accommodation bond or receive any of the supplements. The principles ensure that only certified residential care services can charge an accommodation bond or receive an accommodation supplement, a concessional resident supplement, or a charge exempt resident supplement. This certification process is crucial to maintain the quality and eligibility standards set by the Act.
Failure to comply with the provisions of the Aged Care Act 1997 and the Certification Amendment Principles 2008 (No. 1) can result in various consequences. While the explanatory statement does not specify detailed penalties, non-compliance with certification requirements and improper charging of supplements could lead to enforcement actions by the relevant authorities. Such actions might include fines, legal proceedings, or the revocation of the provider’s approval to offer residential aged care services. The overarching intent is to ensure that all providers adhere to the legislative standards to maintain the integrity and fairness of the aged care system.
Overall, the Certification Amendment Principles 2008 (No. 1) ensure that the legislative framework governing aged care services remains updated and aligned with policy changes. By incorporating the new accommodation supplement into the Certification Principles, the Act aims to provide a transparent and fair system for both service providers and recipients. The principles, therefore, play a vital role in maintaining the balance between the costs borne by residents and the subsidies provided by the Commonwealth Government.