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.
Overview
The Extra Service Amendment Principles 2008 (No. 1) were enacted to address the need for updated principles governing the provision of extra services in aged care, following legislative amendments introduced by the Aged Care Amendment (2008 Measures No. 1) Act 2008. This Act was enacted by the Australian Parliament to reform and streamline the fees and charges for aged care services, as well as to make the subsidy system fairer for residents who cannot fully meet their care and accommodation costs. The introduction of a new class of residents, known as "supported residents", necessitated amendments to existing principles. The policy objective of these amendments is to ensure that the Extra Service Principles reflect the changes introduced by the 2008 Act, thereby maintaining consistency and fairness across the aged care system. These principles are a legislative instrument under the Legislative Instruments Act 2003, and they commenced on 20 March 2008.
Scope and Application
The Aged Care Act 1997 governs the funding of aged care services in Australia, applicable to approved providers who offer residential aged care services and their approved care recipients. The Act facilitates the provision of residential care subsidy payments to these providers for the care they offer to recipients. The Extra Service Amendment Principles 2008 (No. 1) are a legislative instrument made under the Aged Care Act 1997, designed to amend the Extra Service Principles to incorporate a new class of residents called ‘supported residents’. This amendment reflects changes in the Act introduced by the Aged Care Amendment (2008 Measures No. 1) Act 2008, which aimed to simplify and make fairer the fees and charges paid by residents and the subsidies paid by the Commonwealth Government. These Amending Principles extend across the Commonwealth of Australia and are effective as of 20 March 2008. They require the Secretary to consider the proportion of residential care to be provided to supported, concessional, and assisted residents when determining extra service status, ensuring that such status does not unreasonably reduce access to residential care by certain groups. The Act applies nationally, and while specific exclusions or exemptions are not detailed in the explanatory statement, the Amending Principles are subject to further refinement through subordinate instruments as necessary.
Key Provisions
The Extra Service Amendment Principles 2008 (No. 1) amend the Extra Service Principles under the Aged Care Act 1997, introducing changes to reflect the new category of ‘supported residents’ who are eligible for residential care subsidy payments. These principles ensure that the updated Extra Service Principles align with the legislative amendments made by the Aged Care Amendment (2008 Measures No. 1) Act 2008. Specifically, Schedule 1 of the Amending Principles modifies various references in the Extra Service Principles to include ‘supported residents’ alongside ‘concessional’ and ‘assisted residents’ (Item 1). The changes are designed to maintain consistency and fairness in the application of subsidies across different resident categories.
The Amending Principles impose obligations on approved providers of residential aged care services, requiring them to consider the needs and proportions of supported, concessional, and assisted residents when determining eligibility for extra service status. This includes ensuring that the provision of extra services does not unreasonably reduce access to residential care for any group of residents (Section 14.17). Approved providers must also comply with the updated definitions and requirements set forth in the Extra Service Principles to avoid any negative impacts on access to care.
Breaches of the obligations and requirements outlined in the Amending Principles may result in civil or criminal penalties. While the document does not specify maximum penalties, violations of the Aged Care Act 1997 and its subsidiary legislation can lead to enforcement actions by the Department of Health and Ageing, including fines, corrective orders, or other administrative sanctions. In severe cases, criminal charges may be pursued, depending on the nature and extent of the breach. Compliance with the Amending Principles is crucial for maintaining the integrity of the aged care funding system and ensuring equitable access to care for all eligible residents.