Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026

Administered by Department of Health, Disability and Ageing

Legislation au F2026L00756 In force Legislative Instrument

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EXPLANATORY STATEMENT

 

National Health Act 1953

 

Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026

 

Purpose and operation

The Continence Aids Payment Scheme (CAPS) provides for a monetary payment (CAPS payment) to be made to an eligible person, which is intended to contribute towards the cost of purchasing their continence aids.

 

The Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026 (the Instrument) amends the Continence Aids Payment Scheme 2020 to increase the amount of the CAPS payment in line with the Consumer Price Index (CPI). The amendment will increase the amount of the CAPS payment from $717.10 to $739.40.

Authority

The Instrument is made under section 12 of the National Health Act 1953 (the Act). Section 12 of the Act provides that the Minister, by legislative instrument, may formulate the CAPS, under which the Commonwealth makes payments as a contribution towards the cost of buying products that help manage incontinence. Paragraph 12(3)(c) of the Act specifies that the legislative instrument may provide for the amount of the contribution that is payable in each financial year in relation to a person who is participating in the scheme.

 

Reliance on subsection 33(3) of the Acts Interpretation Act 1901

Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Commencement

The Instrument commences on 1 July 2026.

Consultation

The CAPS payment amount was calculated according to an indexation formula based on the CPI figures supplied by the Department of Finance.

General

The Instrument is a disallowable legislative instrument for the purposes of the Legislation Act 2003.

 

Details of the Instrument are set out in Attachment A.

 

The Instrument is compatible with the rights and freedoms recognised or declared under
section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility with human rights is set out in Attachment B.

ATTACHMENT A

 

 

Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026

 

Section 1 – Name

 

This section provides that the name of the Instrument is the Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026.

 

Section 2 – Commencement

 

This section provides that the Instrument commences on 1 July 2026.

 

Section 3 – Authority

 

This section provides that the Instrument is made under section 12 of the National Health Act 1953.

 

Section 4 – Schedule

 

This section provides that each instrument that is specified in a Schedule to the 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

 

Continence Aids Payment Scheme 2020

 

Item 1 – Subsection 11(1)

 

Item 1 omits “$717.10” from subsection 11(1) of the Continence Aids Payment Scheme 2020 and substitutes with “$739.40”. This increases the amount of CAPS payment to be made to an eligible person, to assist with the cost of purchasing their continence aids.

 

 

 


ATTACHMENT B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026

This disallowable 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 Legislative Instrument

The Continence Aids Payment Scheme 2020 (the Scheme) provides for a monetary payment (CAPS payment) to be made to an eligible person which is intended to contribute to their costs in purchasing continence aids.

 

The purpose of the Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026 (the Instrument) is to amend the Scheme to increase the CAPS payment in line with the Consumer Price Index (CPI) from 1 July 2025. The amendment will increase the amount of the CAPS payment from $717.10 to $739.40.

 

Human rights implications

The Instrument engages the right to an adequate standard of living in Article 11 and the right to the enjoyment of the highest attainable standard of physical and mental health in Article 12 of the International Covenant on Economic, Social and Cultural Rights.

 

The Instrument increases the amount of payment under the Scheme paid to participating persons. This increase is in accordance with movements in the Consumer Price Index. It provides participating persons with further financial support to help meet some of the costs of their continence products.

 

Conclusion

The Instrument is compatible with human rights as it further promotes the realisation of relevant rights under Articles 11 and 12 of the International Covenant on Economic, Social and Cultural Rights.

 

 

The Hon Sam Rae MP

Minister for Aged Care and Seniors

Overview

The Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026, made under section 12 of the National Health Act 1953, aims to adjust the amount of the Continence Aids Payment Scheme (CAPS) payment to align with the Consumer Price Index (CPI). The purpose of this legislative instrument is to ensure that the financial support provided to eligible individuals for the purchase of continence aids remains relevant and sufficient in the face of inflation. By increasing the CAPS payment from $717.10 to $739.40, the Instrument seeks to address the evolving costs associated with purchasing continence aids, thereby supporting the right to an adequate standard of living and the highest attainable standard of physical and mental health as recognised under international human rights law. This amendment is designed to take effect from 1 July 2026, following consultation with relevant departments and consideration of CPI data.

Scope and Application

The Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026 amends the Continence Aids Payment Scheme 2020 under section 12 of the National Health Act 1953, to increase the monetary payment provided under the Scheme to eligible persons in line with the Consumer Price Index. This legislative instrument applies to eligible persons who participate in the Continence Aids Payment Scheme, providing them with increased financial support for purchasing continence aids. The amendment specifies that the CAPS payment will rise from $717.10 to $739.40, effective from 1 July 2026. This adjustment aims to accommodate changes in the cost of living, ensuring that the financial assistance remains relevant and adequate. The Instrument is a disallowable legislative instrument and is compatible with the rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Continence Aids Payment Scheme Amendment (Indexation of CAPS Payment) Instrument 2026 (the Instrument) amends the Continence Aids Payment Scheme 2020 to adjust the payment amount provided under the scheme. Specifically, Section 4 of the Instrument, via Schedule 1, Item 1, increases the CAPS payment from $717.10 to $739.40, effective from 1 July 2026 (Section 2). This increase is intended to align with the Consumer Price Index (CPI), ensuring that the payment keeps pace with inflation and continues to provide adequate financial support to eligible persons for the cost of continence aids (Section 12(3)(c) of the National Health Act 1953). The Instrument imposes certain obligations on the parties involved. Under Section 12 of the National Health Act 1953, the Minister has the authority to formulate the CAPS through a legislative instrument, ensuring that the scheme provides the intended financial support to eligible persons. The Instrument, by amending the Continence Aids Payment Scheme 2020, ensures that the CAPS payment amount is updated in line with CPI movements. This is crucial for maintaining the scheme's effectiveness and relevance in supporting the health and well-being of individuals reliant on continence aids. There are no explicit offences, penalties, or consequences outlined in the Instrument for breaches of its provisions. However, as a disallowable legislative instrument under the Legislation Act 2003, any failure to comply with the amended CAPS payment amount could potentially lead to legal challenges or other consequences under the broader legislative framework governing the National Health Act 1953 and related schemes. The compatibility of the Instrument with human rights is addressed in Attachment B. The Instrument is designed to enhance the right to an adequate standard of living and the right to the highest attainable standard of physical and mental health, as recognised in the International Covenant on Economic, Social and Cultural Rights. By adjusting the CAPS payment in line with the CPI, the Instrument supports eligible persons in managing their health needs more effectively, thereby promoting the realisation of these rights.

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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.