EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Community Care Grant 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 Community Care Grant Principles 1997 (the Community Care Grant Principles) is one of the sets of Principles made under the Act.
The purpose of the Community Care Grant Amendment Principles 2008 (No. 1) (the Amending Principles) is to achieve the objectives detailed below. The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Community Care Grant 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.
As part of the amendments, changes were also made to enable the broadening of eligibility for community care grants for providers of Community Aged Care Packages, and to extend eligibility to providers of the flexible care types Extended Aged Care at Home (EACH) and Extended Aged Care at Home – Dementia (EACH-D). New Flexible Care Grant Principles have been developed for EACH and EACH-D.
The purpose of these Amending Principles is to make changes to the Community Care Grant Principles to broaden eligibility for community care grants and also to increase the maximum amount of grant.
Consultation
The Department of Health and Ageing has undertaken consultation with the sector in relation to the changes to grants.
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 Community Care Grant Amendment Principles 2008 (No. 1).
Clause 2 states that the Principles commence on 20 March 2008.
Clause 3 states that Schedule 1 amends the Community Care Grant Principles.
Schedule 1 Amendments
Item 1
Section 11.5 sets out additional criteria for the allocation of community care grants. Currently, one of these criterion is that the the purpose of the project is a purpose mentioned in subsection 76‑1(1) of the Act and is not merely to expand an existing project within an existing area.
This item amends this criterion (as detailed in paragraph 11.5(a)) so that the purpose of the project must be a purpose mentioned in subsection 76‑1(1) of the Act. However, there is no longer the limitation that the project not be for expanding an existing project within an existing area. In other words, the criteria for allocation of grants have been broadened to enable grants to be paid for existing projects within existing areas.
Item 2
Another criterion for the allocation of community care grants under section 11.5(b) is that a community care grant has not previously been allocated for a project.
This item removes this criterion. The effect of this is to broaden the eligibility criteria for community care grants such that a grant may be paid in relation to a project that has previously received a grant.
Item 3
This item inserts a new note at the end of section 11.5. The new note reminds readers that one way that an approved provider may seek to establish that a project confers a significant benefit is to demonstrate that the project is for a service in a priority or high-need area.
Item 4
Subsection 11.7(1) currently provides that the maximum amount of a community care grant is the sum of $50,000 and the amount of GST payable by the approved provider on that amount.
This item amends the provision so that the maximum amount of a community care grant is the sum of $65,000 and the amount of GST payable by the approved provider on that amount.
The maximum has been increased so it is approximately equivalent in economic terms to the maximum amount that was stipulated when the grants were introduced in 2001. This change is necessary to allow for continued flexibility within the program.
The amount of a community care grant paid to an approved provider for community care services will continue to be determined on the basis of a competitive process whereby the Secretary considers matters such as:
- the circumstances of the approved provider;
- the purposes for which the grant is payable;
- the location of the community care services; and
- the kinds of people proposed to be provided with community care through the services.
Overview
The Aged Care Act 1997, enacted by the Australian Parliament, governs the funding of aged care services. To address gaps in the system and to ensure fairer and more simplified subsidies for aged care facilities, the Community Care Grant Amendment Principles 2008 (No. 1) were introduced. These principles were developed to broaden eligibility for community care grants, allowing for grants to be paid for existing projects within existing areas and to projects that have previously received grants. Additionally, the maximum amount of a community care grant was increased from $50,000 to $65,000 to maintain economic flexibility within the program. The objective of these amendments is to provide more equitable and flexible funding options for aged care providers, ensuring that the needs of both providers and recipients are met effectively.
Scope and Application
The Community Care Grant Amendment Principles 2008 (No. 1) applies to the Community Care Grant Principles under the Aged Care Act 1997, particularly to the allocation and payment of community care grants to approved providers of Community Aged Care Packages, as well as to the new Extended Aged Care at Home (EACH) and Extended Aged Care at Home – Dementia (EACH-D) services. This legislative instrument broadens the eligibility for community care grants by removing restrictions on grants for projects that seek to expand existing projects within existing areas and by allowing grants to be paid for projects that have previously received a grant. Furthermore, the amendment increases the maximum amount of a community care grant to $65,000 plus GST, aligning it with economic terms comparable to when the grants were initially introduced in 2001. The scope of this legislation is national, applying across Australia as it pertains to the Commonwealth Government’s subsidies and grants under the Aged Care Act. The application of these principles is further extended through subordinate instruments, which may detail specific processes or criteria for the competitive allocation of grants.
Key Provisions
The Community Care Grant Amendment Principles 2008 (No. 1) introduce several key changes to the Community Care Grant Principles under the Aged Care Act 1997. Firstly, section 11.5 of the Principles now allows for community care grants to be allocated for projects that aim to expand existing projects within existing areas (Item 1). This broadens the scope of grant eligibility beyond what was previously permitted, where grants could not be used to expand existing projects. Additionally, Item 2 removes the restriction that prevents a community care grant from being allocated to a project that has previously received a grant. This change means that providers can now apply for grants even if their project has been funded before, thus increasing the opportunities for ongoing support and development of services.
Furthermore, Item 3 adds a note to section 11.5, reminding providers that demonstrating the significance of a project's benefit can be achieved by showing that the service is in a priority or high-need area. This note serves as a guideline for providers to substantiate their grant applications effectively. Lastly, Item 4 increases the maximum amount of a community care grant from $50,000 to $65,000, adjusting for inflation and maintaining the economic value of the grants since their inception in 2001. The grant amount is still subject to a competitive process, considering various factors such as the provider's circumstances, the purpose of the grant, the location of services, and the target population (subsection 11.7(1)).
Approved providers who apply for community care grants under the amended Principles must adhere to the new criteria set forth in the legislation. They are required to ensure that their projects align with the purposes outlined in subsection 76-1(1) of the Act. Additionally, providers must be prepared to demonstrate how their projects meet the priority or high-need areas as noted in the new section 11.5. Failure to meet these criteria may result in their grant applications being unsuccessful. Moreover, the increased maximum grant amount provides more flexibility for providers to implement and expand their services, subject to the competitive assessment process.
Breaches of the provisions outlined in the Amending Principles can lead to significant consequences. While the explanatory statement does not detail specific offences, it is implied that non-compliance with the grant criteria and the competitive process may result in the denial of grants or other penalties as stipulated by the Aged Care Act 1997. The Act may also provide for civil or criminal penalties for deliberate misrepresentation or fraud in grant applications, although the specific penalties are not enumerated in the explanatory statement. Providers are expected to comply with all legislative requirements to avoid any negative repercussions.