EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Classification Amendment Principles 2013 (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.
Section 96-1 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 Classification Principles 1997 (the Classification Principles) is one of the sets of Principles made under the Act.
The purpose of the Classification Amendment Principles 2013 (No. 1) (the Amending Principles) is to update references to the Aged Care Funding Instrument (ACFI) User Guide and ACFI Answer Appraisal Pack approved by the Minister for Mental Health and Ageing.
The ACFI is an instrument which facilitates the allocation of funding for residents in residential aged care. The ACFI User Guide and ACFI Answer Appraisal Pack, approved by the Minister for Mental Health and Ageing, assist users to answer the twelve care need questions that form part of the ACFI, and to collect diagnostic information about mental and behavioural disorders and other medical conditions. This information is used to categorise residents as having low, medium or high care needs in each of the following care domains: activities of daily living (ADL); behaviour (BEH); and complex health care (CHC).
The revised versions of the ACFI User Guide and Answer Appraisal Pack include five changes which will improve the evidence requirements and enhance the guidance provided to users for questions in the ADL domain and the CHC domain. The Amending Principles ensure the updated documents are used as the guidance authority.
The Amending Principles commence on 1 February 2013.
The Amending Principles is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Regulation impact statement
The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 14515).
Consultation
The changes to the ACFI arrangements have been the subject of extensive consultations with consumers, approved providers and health professionals through the ACFI Monitoring Group and the ACFI Technical Reference Group.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Classification Amendment Principles 2013 (No.1)
This Legislative Instrument is 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 purpose of the Classification Amendment Principles 2013 (No. 1) (the Amending Principles) is to update references to the Aged Care Funding Instrument (ACFI) User Guide and ACFI Answer Appraisal Pack approved by the Minister for Mental Health and Ageing.
The revised versions of the ACFI User Guide and Answer Appraisal Pack include five changes which will strengthen the evidence requirements and enhance the guidance provided to users for questions in the ADL domain and the CHC domain. The Amending Principles ensure the updated documents are used as the guidance authority.
These additions to the ACFI User Guide and Answer Appraisal Pack support the original intention of the ACFI and reinforce current good practice within the sector of using evidence based assessment tools to assess each resident’s care needs. These changes have been developed in consultation with the aged care sector and will not impose a disproportionate administrative burden on the sector.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms as it does not create nor limit any applicable rights or freedoms. Implementation of this Legislative Instrument ensures that the Classification Principles 1997 correctly refer to the most up to date version of the ACFI User Guide and Answer Appraisal Pack.
By updating references to documents, this Legislative Instrument ensures that subsidies paid by the Commonwealth under the Aged Care Act 1997 will be better aligned with the level of care required by care recipients and the costs of providing that care.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Mark Butler
Minister for Mental Health and Ageing
Overview
The Aged Care Act 1997 was enacted to provide for the funding of aged care services in Australia, including the allocation of residential care subsidy payments to approved providers for the care of approved recipients. The Classification Amendment Principles 2013 (No. 1) were introduced to update references to the Aged Care Funding Instrument (ACFI) User Guide and ACFI Answer Appraisal Pack approved by the Minister for Mental Health and Ageing. This was done to ensure that the updated documents, which included enhancements to the evidence requirements and guidance for assessing care needs in the activities of daily living and complex health care domains, were used as the guidance authority. The Amending Principles were made under section 96-1 of the Aged Care Act 1997 and are intended to better align the subsidies paid by the Commonwealth with the level of care required by care recipients and the costs of providing that care. The changes were developed in consultation with the aged care sector and do not impose a disproportionate administrative burden. The Legislative Instrument is compatible with human rights, as it does not create or limit any applicable rights or freedoms.
Scope and Application
The Aged Care Act 1997 provides for the funding of aged care services, including residential care subsidies for approved providers and recipients. The Classification Amendment Principles 2013 (No. 1) update references to the Aged Care Funding Instrument (ACFI) User Guide and ACFI Answer Appraisal Pack approved by the Minister for Mental Health and Ageing. These changes ensure the most current documents are used to assess care needs and categorise residents, thereby aligning subsidies with the level of care required. The Amending Principles apply nationally and involve the aged care sector, including consumers, approved providers, and health professionals. There are no exclusions or exemptions specified in the document, and it does not create or limit any applicable rights or freedoms, thus being compatible with human rights. The Amending Principles commence on 1 February 2013 and are made under the authority of the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Classification Amendment Principles 2013 (No. 1) (Amending Principles) (section 96-1 of the Aged Care Act 1997) serve to update references to the Aged Care Funding Instrument (ACFI) User Guide and ACFI Answer Appraisal Pack, approved by the Minister for Mental Health and Ageing. These updated documents, which incorporate five changes to strengthen evidence requirements and enhance guidance for users, are now to be used as the authoritative source for the ACFI. This ensures that the Classification Principles 1997 correctly refer to the most recent versions of these documents, facilitating more accurate assessment and categorisation of care needs for aged care residents.
The Amending Principles impose obligations on approved providers and other entities involved in the provision of residential aged care services. They must now use the updated ACFI User Guide and Answer Appraisal Pack to answer the twelve care need questions that form part of the ACFI. These questions are critical for categorising residents as having low, medium, or high care needs in the domains of activities of daily living (ADL), behaviour (BEH), and complex health care (CHC). Approved providers are expected to adhere to the enhanced guidance provided in the revised documents to ensure that the classification of care needs is evidence-based and aligned with current best practices in the sector.
While the Amending Principles themselves do not introduce new offences or penalties, they ensure compliance with the existing legislative framework by enforcing the use of updated documents for the assessment and classification of care needs. Any failure to comply with these updated principles could potentially lead to non-compliance with the Aged Care Act 1997, which may result in administrative or legal consequences for the approved providers. This includes possible scrutiny and audit by regulatory authorities, leading to penalties for incorrect classification of care needs, which could affect the level of subsidies received by the providers.
The Amending Principles are compatible with human rights as they do not create or limit any applicable rights or freedoms, as outlined in the Statement of Compatibility with Human Rights. The purpose of these principles is to ensure that the ACFI User Guide and Answer Appraisal Pack correctly reference the most current versions, thereby aligning the subsidies paid by the Commonwealth more closely with the actual care needs and costs of providing that care. This legislative update supports the original intent of the ACFI and reinforces the use of evidence-based assessment tools, which are crucial for accurately determining the level of care required by residents.