EXPLANATORY STATEMENT
Issued by the authority of the Assistant Minister for Social Services
Aged Care Act 1997
Committee Amendment (Aged Care Financing Authority) Principle 2013
The Aged Care Act 1997 (the Act) provides for the regulation and funding of aged care services. 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. Among the Principles made under section 96-1 is the Committee Principles 2013 (the Principles).
The purpose of the Committee Amendment (Aged Care Financing Authority) Principle 2013 (the amending Principle) is to include the Aged Care Pricing Commissioner as a position that forms part of the Aged Care Financing Authority’s constitution. The Aged Care Financing Authority is a committee established under section 96-3 of the Act.
The Amending Principle also repeals Part 3 of the Principles that describes transitional provisions that are no longer in operation.
The Amending Principle is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
Recent amendments were made to the Act to establish the Aged Care Pricing Commissioner and the Aged Care Financing Authority. These amendments were developed in consultation with the aged care sector, including consumers, industry and professional bodies.
Consultation on the proposed amendments to the Act, and to delegated legislation, commenced in November 2012, with the public release of a paper providing an overview of the proposed legislative changes and a video presentation detailing the proposed reforms.
The consultations continued in 2013 with further industry briefings on the proposed changes in Melbourne, Sydney and Canberra.
As part of these consultations, it was noted that consequential changes would be made to Principles (delegated legislation) in order to support the changes made to the Act. Where these are substantial, consultation is being undertaken on the draft Principles. However, where the changes are purely consequential or are minor, technical changes, public consultation is not being undertaken. As this Amending Principle contains only consequential and technical changes, public consultation has not been undertaken on a draft of the Amending Principle.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 15170).
Commencement
The Amending Principle commences on the day after it is registered on the Federal Register of Legislative Instruments.
ATTACHMENT
Details of the Committee Amendment (Aged Care Financing Authority) Principle 2013
Clause 1 states the name of the Amending Principle is the Committee Amendment (Aged Care Financing Authority) Principle 2013.
Clause 2 states that the Amending Principle commences on the day after it is registered.
Clause 3 states that the Amending Principle is made under section 96-1 of the Aged Care Act 1997.
Clause 4 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1 – Amendments
Committee Principles 2013
Item 1 – Section 10.4 (at the end of the definition of Aged Care Financing Authority member)
This item amends the definition of ‘Aged Care Financing Authority member’ to provide that an Aged Care Financing Authority member does not include the Aged Care Pricing Commissioner.
Item 2 – Section 10.8 (heading)
This item substitutes the heading ‘Membership’ with ‘Constitution’ with reference to positions that form the Aged Care Financing Authority.
Item 3 – At the end of section 10.8
This item includes the Aged Care Pricing Commissioner as a position that forms part of the Aged Care Financing Authority’s constitution. While the Aged Care Pricing Commissioner will form part of the constitution of the Aged Care Financing Authority, the Commissioner will not be a member of the Aged Care Financing Authority. The Aged Care Pricing Commissioner will be able to provide input to the Aged Care Financing Authority considerations, particularly on the regulatory impact of any policy considerations. It will also be useful for the Pricing Commissioner’s role to be kept abreast of the broader financial issues in the aged care sector.
Item 4 – Section 10.8 (notes 1 and 2)
This item repeals and substitutes current notes, to clarify that representatives of the Department of Social Services and the Treasury, along with the Aged Care Pricing Commissioner, are not Aged Care Financing Authority members.
Item 5 – Subsection 10.11(1) (note)
This item repeals the note that references Part 3 that relates to transitional arrangements for remunerating members of the Aged Care Financing Authority. The note is being repealed because Part 3 is being repealed.
Item 6 – Part 3
This item repeals Part 3 that describes transitional provisions that are no longer in operation.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Committee Amendment (Aged Care Financing Authority) Principle 2013
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 Committee Principles 2013 (the Principles) describe the functions of the Aged Care Financing Authority which include providing advice to the Minister in relation to any specific issues relevant to the funding and financing of aged care services.
The purpose of the Committee Amendment (Aged Care Financing Authority) Principle 2013 (the Amending Principle) is to include the Aged Care Pricing Commissioner as a position that forms part of the Aged Care Financing Authority’s constitution and to specify that the Aged Care Pricing Commissioner is not a member of the Aged Care Financing Authority. The Amending Principle also repeals Part 3 of the Committee Principles 2013 which sets out redundant transitional provisions.
Human Rights Implications
This legislative instrument is compatible with human rights as it will assist in promoting the right of recipients of residential aged care to an adequate standard of living as contained in article 11(1) of the International Covenant on Economic, Social and Cultural Rights and article 28 of the Convention on the Rights of Persons with Disabilities. The Aged Care Pricing Commissioner will be able to provide input to the Aged Care Financing Authority considerations, particularly on the regulatory impact of any policy considerations. It will also be useful for the Pricing Commissioner’s role to be kept abreast of the broader financial issues in the aged care sector. Attendance by the Aged Care Pricing Commissioner at meetings of the Aged Care Financing Authority will provide an additional source of input to the Aged Care Financing Authority’s deliberations and provide the Commissioner with an insight to the broader financial issues in the aged care sector.
Conclusion
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, as it promotes the human right to an adequate standard of living.
Senator the Hon Mitch Fifield
Assistant Minister for Social Services