EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Community Care Subsidy Amendment Principles 2012 (No. 1)
The Aged Care Act 1997 (the Act) provides for the regulation and funding of aged care services. Persons who are approved under the Act to provide aged care services (approved providers) can be eligible to receive subsidy payments in respect of the care they provide to approved care recipients receiving care in allocated places.
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 are the Community Care Subsidy Principles 1997 (the Community Care Subsidy Principles).
The purpose of the Community Care Subsidy Amendment Principles 2012 (No. 1) (the Amending Principles) is to amend the Community Care Subsidy Principles to specify that community care for a person may be provided at one of four levels. This is to facilitate the transition from current arrangements for the provision of aged care in a person’s own home to new arrangements that it is proposed will commence on 1 July 2013.
Currently an approved provider may be allocated places for the provision of community care and may receive community care subsidy payments for providing care in respect of those places. An approved provider may also be allocated places for the provision of flexible care in the form of extended aged care at home (EACH) or extended aged care at home—dementia (EACH—D) and receive flexible care subsidy for providing these forms of care.
As part of the Living Longer Living Better aged care reforms, it is proposed that from 1 July 2013 there will be four levels of home care packages replacing community care, EACH and EACH—D packages:
- home care level 1, comprising a basic care package;
- home care level 2, comprising a low care package;
- home care level 3, comprising an intermediate care package; and
- home care level 4, comprising a high care package.
A behaviour supplement may be payable in addition to the basic subsidy amount if a care recipient receiving home care at any level has a relevant diagnosis.
It is proposed that details regarding the composition of these packages will be set out in new Home Care Subsidy Principles to be made under section 96-1 of the Act for commencement on 1 July 2013. The Home Care Subsidy Principles will be made following consultation with representatives of the aged care industry, consumer groups, unions, older Australians, their families and carers.
To allow for the allocation of places to approved providers for the provision of the four levels of home care in the 2012-2013 Aged Care Approvals Round (ACAR) prior to the commencement of the Home Care Subsidy Principles, these Amending Principles specify that community care may be provided to a care recipient at one of four levels. These four levels correspond to the proposed four levels of home care. Paragraph 12-5 of the Act currently provides that the Secretary may, in respect of each type of subsidy, determine for the places available for allocation the proportion of care that must be provided to people needing a particular level of care.
The amendments to the Community Care Subsidy Principles made by the Amending Principles will enable the Secretary, in the fourth quarter of 2012, to invite applications from approved providers under section 13-2 of the Act for community care places, Levels 1 to 4, that it is intended will become home care places, levels 1 to 4, by force of legislation from 1 July 2013.
Consultation
As part of the Living Longer Living Better aged care reforms, extensive consultation was undertaken with relevant Commonwealth Departments, the aged care industry, consumer groups, unions, older Australians, their families and carers and the broader community regarding support for people who wish to receive aged care in their own homes.
As the amendments in these Amending Principles are minor or machinery in nature, no specific consultation was undertaken in relation to this instrument.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 14239).
Commencement
This instrument commences on the day after registration.
The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Community Care Subsidy Amendment Principles 2012 (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 Community Care Subsidy Amendment Principles 2012 (No. 1) amend the Community Care Subsidy Principles 1997 to specify that community care for a person may be provided at one of four levels. This is to facilitate the transition from current arrangements for the provision of aged care in a person’s own home to new arrangements that it is proposed will commence on 1 July 2013.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
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