EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Ageing
Aged Care Act 1997
Extra Service Amendment Principles 2005 (No. 1)
From 1 July 2005, Extra Service status, under the Aged Care Act 1997 (‘the Act’), no longer needs to be renewed.
Amending legislation to the Aged Care Act 1997 (‘the Act’) removed the requirement to renew terms of Extra Service status, the Aged Care Amendment (Extra Service) Act 2005, received Royal Assent on 26 June 2005 (Act No. 59 of 2005).
Changes to the Extra Service Principles (the Principles) are technical amendments to align provisions in the Principles to changes made to provisions in the Act. Amendments to the Principles will be taken to have commenced from 1 July 2005 to be consistent with the Aged Care Amendment (Extra Service) Act 2005.
Background
The Aged Care Act 1997 (‘the Act’) regulates the Australian Government’s role in supporting quality aged care in Australia. The Extra Service Principles are made under section 96(1) of the Act. One function of the Act is to determine the rules under which aged care may operate. One form of residential aged care is Extra Service which can operate when a provider of aged care has been granted Extra Service status for residential aged care places.
An aged care service with Extra Service status allows residents to choose, and pay for, a higher than average level of hotel-type services, including accommodation, the range and quality of food and the provision of non-care services such as recreational and personal interest activities.
Changes to the Principles will align subordinate legislation (the Principles) to the Act which has been amended to remove the requirement that Extra Service providers need to reapply for Extra Service status every five years.
Extra Service status is granted by the Secretary of the Department of Health and Ageing under Part 2.5 of the Act.
The Aged Care Amendment (Extra Service) Act 2005 removed the expiry date for Extra Service status. It has also removed all provisions relating to the renewal of Extra Service status under Division 34 and the extension of the period of Extra Service status under subsection 33-2(3). It has also removed the ability to “continue” Extra Service status under section 31-2 but provides for Extra Service status to “continue” for residents already receiving the benefit of section 31-2. The Act has also made consequential amendments to other provisions within the Aged Care Act 1997.
The amendments to the Principles will delete all references to repealed provisions of the Act and to references to the continuation or renewal of Extra Service status.
Consultation
Consultation on these changes was made with aged care providers, their representatives and consumer representatives through the Extra Service Reference Group. This measure will provide more certainty for Extra Service providers, particularly in relation to their capital-raising requirements.
The Office of Regulation Review has advised that no Regulation Impact Statement is required (ORR ID Number 7147).
The Determination is a “legislative instrument” for the purposes of the Legislative Instruments Act 2003. Although the amendment to the Principles will be registered at a date later than 1 July 2005, it does not contravene subsection 12(2) of the Legislative Instruments Act 2003. This subsection provides that if a legislative instrument is expressed to take effect from a time before it is registered, but the instrument would adversely affect the rights of, or impose liabilities on a person at a time before the instrument is registered, the instrument has no such effect in relation to the period before the instrument is registered.
The Extra Service Amendment Principles 2005 (No. 1) make technical amendments to ensure that the Principles are consistent with the Aged Care Act 1997. The relevant provisions in the Principles have had no effect from 1 July 2005, due to the amendments made by the Aged Care Amendment (Extra Service) Act 2005.
Details of the proposed amendments to the Principles are listed at Attachment A.
ATTACHMENT A
DETAILS OF THE PROPOSED EXTRA SERVICE AMENDMENT PRINCIPLES 2005 (No. 1)
Section 1 names the Principles as the Extra Service Amendment Principles 2005 (No. 1).
Section 2 provides for the Principles to be taken to have commenced on 1 July 2005.
Section 3 provides that Schedule 1 amends the Extra Service Principles 1997.
Schedule 1 - Amendments
Item [1]
This Item omits Part 3 (Continuing Extra Service status). This Part set out requirements that needed to be met before the Secretary could determine under section 31-2 of the Act that a place in a residential care service remains an Extra Service place after the residential care service’s Extra Service status expires. The Part also specified the period within which the Secretary had to notify an applicant of that determination. The omission of Part 3 is required following the repeal of section 31-2 of the Act.
Item [2]
This Item substitutes a new heading for Part 4. In essence, it removes the reference to the renewal of Extra Service status.
Item [3]
This Item substitutes a new section 14.11, which describes the purpose of Division 1 of Part 4. In essence, references to section 34-2 of the Act, and renewal of Extra Service status, have been removed.
Item [4]
This Item substitutes a new heading for section 14.12. The reference to the renewal of Extra Service status has been removed.
Item [5]
This Item omits Division 5 (Renewal of Extra Service status) from Part 4. This Division specified additional matters to which the Secretary was to have regard in considering an application for renewal of Extra Service status under section 34-3 of the Act. The omission of Division 5 of Part 4 is required following the repeal of Division 34 of the Act.
Item [6]
This Item substitutes a new heading for Part 5. In essence, it removes the reference to the renewal of Extra Service status.
Item [7]
This Item substitutes a new section 14.24, which describes the purpose of Division 1 of Part 5. In essence, references to section 34-5 of the Act, and renewal of Extra Service status, have been removed.
Item [8]
This Item substitutes a new section 14.26, which describes the purpose of Division 2 of Part 5. As with Item 7, references to section 34-5 and renewal of Extra Service status have been removed.
Item [9]
This Item substitutes a new section 14.32, which sets out additional requirements that must be satisfied by an application for approval of Extra Service fees under section 35-2 of the Act. In essence, it removes references to Division 34 of the Act, and applications for renewal of Extra Service status.