EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Extra Service 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 Extra Service Principles 1997 (the Extra Service Principles) is one of the sets of Principles made under the Act.
The purpose of the Extra Service Amendment Principles 2008 (No. 1) (the Amending Principles) is detailed below. The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Extra Service 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.
One of the changes that was made to the Act (in order to give effect to the new system of fees and charges) was the creation of a new class of residents for which residential care subsidy is payable under Chapter 3 of the Act. The new class of ‘supported residents’ joins the existing classes of residents known as ‘assisted residents’ and ‘concessional residents’.
As the result of the creation of this new class, consequential changes were required throughout the Act and are also required throughout the Aged Care Principles.
The purpose of these Amending Principles is to include ‘supported residents’ alongside the existing references to concessional and assisted residents in the Extra Service Principles.
Consultation
The Department of Health and Ageing undertook extensive consultation on the policy that is implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 which amends the Act. These Amending Principles flow from these amendments.
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 Extra Service Amendment Principles 2008 (No. 1).
Clause 2 states that the Principles commence on 20 March 2008.
Clause 3 states that Schedule 1 amends the Extra Service Principles.
Schedule 1 Amendments
Item 1
This is a consequential amendment that results from the creation of a new class of residents (supported residents) for which residential care subsidy is payable under Chapter 3 of the Act.
Section 14.17 specifies matters to which the Secretary must have regard when determining whether granting extra service status would unreasonably reduce access to residential care by certain groups of people.
Paragraph 14.17(2)(a) provides that the Secretary must have regard to the proportion (if any) determined under section 12-5 of the Act as the proportion of residential care that must be provided to concessional residents and assisted residents in the State, Territory or region concerned.
This item amends this paragraph such that the Secretary must have regard to the proportion of residential care that must be provided to supported, concessional and assisted residents in the State, Territory or region concerned.