Committee Amendment (Aged Care Financing Authority) Principle 2013

Administered by Department of Social Services

Legislation au F2013L02185 Not in force Legislative Instrument

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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

Overview

The Committee Amendment (Aged Care Financing Authority) Principle 2013 amends the Committee Principles 2013, which describe the functions of the Aged Care Financing Authority under the Aged Care Act 1997. The primary objective of this amending Principle is to incorporate the Aged Care Pricing Commissioner into the constitution of the Aged Care Financing Authority, while also clarifying that the Commissioner is not a member of the Authority. This change aims to ensure that the Commissioner can contribute to the Authority's deliberations, particularly regarding the regulatory impact of policy considerations, while maintaining a clear distinction between the roles of the Commissioner and the Authority members. Additionally, the amending Principle repeals Part 3 of the Committee Principles 2013, which pertains to transitional provisions that are no longer in operation. Enacted by the Parliament of Australia under section 96-1 of the Aged Care Act 1997, this legislative instrument is designed to support the ongoing refinement of aged care financing and regulation, ensuring that the Authority benefits from expert input on pricing and financial matters without altering the Authority’s membership structure.

Scope and Application

The Committee Amendment (Aged Care Financing Authority) Principle 2013 amends the Aged Care Act 1997 to integrate the Aged Care Pricing Commissioner into the constitution of the Aged Care Financing Authority, while ensuring the Commissioner is not a member of the Authority. This legislative instrument applies to the Aged Care Pricing Commissioner and the Aged Care Financing Authority, affecting the conduct and operations of these entities within the aged care sector. The amendment is part of the broader regulatory framework governing aged care services in Australia and does not extend beyond the established jurisdiction of the Commonwealth. The Amending Principle repeals obsolete transitional provisions, streamlining the legislative instruments related to the Authority's constitution. Although the Amending Principle itself does not require public consultation as it only involves consequential changes, the initial amendments to the Act were developed through extensive consultation with stakeholders in the aged care sector. The Amending Principle commences on the day after its registration on the Federal Register of Legislative Instruments, ensuring timely updates to the regulatory framework.

Key Provisions

The Committee Amendment (Aged Care Financing Authority) Principle 2013 introduces several significant changes to the Aged Care Act 1997 through its provisions. Section 10.4 amends the definition of "Aged Care Financing Authority member" to exclude the Aged Care Pricing Commissioner, clarifying that while the Commissioner is part of the Authority's constitution, they are not a member of the Authority (Section 10.8). This change is aimed at ensuring the Commissioner's role remains distinct and focused on pricing and regulatory impact assessment. Additionally, Section 10.8 updates the heading from "Membership" to "Constitution," reflecting the broader composition of the Aged Care Financing Authority. Subsection 10.11(1) removes a note referencing transitional arrangements that are no longer applicable. The most substantial amendment is the inclusion of the Aged Care Pricing Commissioner as a position within the constitution of the Aged Care Financing Authority (Item 3, Section 10.8). This inclusion allows the Commissioner to provide valuable input on regulatory impacts and stay informed on broader financial issues in the aged care sector, although they will not be a member of the Authority. The Aged Care Financing Authority, now including the Aged Care Pricing Commissioner within its constitution, must ensure that the Commissioner's role is clearly defined to avoid confusion with the roles of its members. The Authority must facilitate the Commissioner's participation in its meetings to leverage their expertise on pricing and financial matters, while maintaining a clear distinction between the Commissioner’s advisory role and the decision-making roles of the Authority members. This includes ensuring that the Commissioner's inputs are appropriately acknowledged and considered in the Authority's deliberations. Under the amending Principle, there are no new offences or penalties introduced. However, any breaches of existing provisions within the Aged Care Act 1997 or the Aged Care (Residential Care) Principles 2009 (as amended) could result in consequences as per those existing provisions. For instance, misleading or deceptive conduct under the Aged Care Act 1997 could attract penalties of up to $222,000 for individuals and $1,110,000 for bodies corporate, as outlined in Section 12GA of the Act. Similarly, non-compliance with the Aged Care (Residential Care) Principles 2009 could lead to fines of up to $1,650,000 for bodies corporate and $330,000 for individuals, as per Section 16 of the Act. The Authority must also ensure compliance with these provisions to avoid any civil or criminal liabilities associated with their operations. The legislative instrument is deemed compatible with human rights, particularly the right to an adequate standard of living, as it facilitates better financial oversight and pricing transparency within the aged care sector. By including the Aged Care Pricing Commissioner within the constitution of the Aged Care Financing Authority, the legislation supports the Authority's ability to provide comprehensive advice on funding and financing issues, ultimately benefiting the recipients of aged care services. The changes ensure that the Commissioner’s role is well-defined and integrated into the Authority’s framework, allowing for informed and effective policy considerations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.