EXPLANATORY STATEMENT
Issued by the authority of the Assistant Minister for Social Services
Aged Care Act 1997
Fees and Payments Amendment Principle 2014 (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.
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 is the Fees and Payments Principles 2014 (No. 2) (the Principles).
Chapter 3A of the Act and the Principles deal with matters relating to contributions care recipients may make to the cost of their care, by paying resident fees or home care fees, as well as fees and payments care recipients may pay for, or contribute to the cost of, accommodation provided with residential care or eligible flexible care.
The purpose of the Fees and Payments Amendment Principle 2014 (No.1) (the Amending Principle) is to remove subsection 41(2), section 42A, subsection 61(2) and section 61A from the Principles, being requirements for approved providers to comply with Part 3A.3 of the Act in relation to managing refundable deposits, accommodation bonds and entry contributions. These requirements will instead be included in the Act once the Aged Care and Other Legislation Amendment Bill 2014 receives Royal Assent. The approved provider responsibility to comply with Part 3A.3 of the Act was included in the Principles as an interim measure only and can be removed when the responsibility is expressed in the Act.
The Amending Principle is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
As the amendments in the Amending Principle are minor and 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 a Regulation Impact Statement is not required (OBPR ID 17515).
Commencement
This Amending Principle commences on the day after it is registered, or the day after the Aged Care and Other Legislation Amendment Bill 2014 receives Royal Assent, whichever is later.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Fees and Payments Amendment Principle 2014 (No. 1)
The Fees and Payments Amendment Principle 2014 (No. 1) (the 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 Legislative Instrument makes technical amendments that remove requirements for approved providers to comply with Part 3A.3 of the Act in relation to managing refundable deposits, accommodation bonds and entry contributions, as these requirements have been included in the Act. These amendments do not alter existing arrangements; rather they merely reflect a relocation of relevant provisions.
Human Rights Implications
The Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
The Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Senator the Hon Mitch Fifield
Assistant Minister for Social Services
Overview
The Fees and Payments Amendment Principle 2014 (No. 1) amends the Fees and Payments Principles 2014 (No. 2) under the Aged Care Act 1997, introduced by the Australian Parliament to streamline the regulation and funding of aged care services. The Act addresses the gap in existing regulations concerning the management of refundable deposits, accommodation bonds, and entry contributions by approved providers. This amendment was designed to transition these requirements from the principles back into the Act itself, pending the passage of the Aged Care and Other Legislation Amendment Bill 2014. The changes are intended to ensure consistency and clarity in the legislative framework governing aged care services. The amendments do not affect existing arrangements but rather adjust the legislative structure to better reflect the responsibilities of approved providers.
The Amending Principle, issued under the authority of the Assistant Minister for Social Services, is a technical adjustment to enhance the coherence of the legislative instruments related to aged care. By removing certain subsections and sections from the Fees and Payments Principles, the amendment ensures that all relevant provisions are consolidated within the Act. This legislative instrument is deemed compatible with human rights, as it does not introduce any new obligations or restrictions that would affect the rights or freedoms of individuals involved in aged care services. The changes are expected to take effect once the Aged Care and Other Legislation Amendment Bill 2014 receives Royal Assent or upon the registration of the Amending Principle, whichever occurs later.
Scope and Application
The Fees and Payments Amendment Principle 2014 (No. 1) amends the Fees and Payments Principles 2014 (No. 2) under the Aged Care Act 1997, primarily to reflect changes that will be enacted through the Aged Care and Other Legislation Amendment Bill 2014. This Act applies to approved providers of aged care services who are eligible to receive subsidy payments for the care they provide to approved care recipients. The amendment removes certain requirements from the Principles that pertain to managing refundable deposits, accommodation bonds, and entry contributions, as these provisions will be integrated directly into the Aged Care Act once the amendment bill receives Royal Assent. The geographic reach of this legislation is national, as the Aged Care Act operates across Australia, with the amendments applying uniformly across all states and territories. There are no specific exclusions or exemptions stated in the Amending Principle, though its application is contingent on the passage and commencement of the Aged Care and Other Legislation Amendment Bill 2014. The principle will either commence on the day after its registration or the day after the amendment bill receives Royal Assent, whichever is later. This legislative instrument does not require consultation or a Regulation Impact Statement due to its technical and interim nature.
Key Provisions
The main sections of the Fees and Payments Amendment Principle 2014 (No. 1) (the Amending Principle) focus on the removal of certain subsections and sections from the Fees and Payments Principles 2014 (No. 2) (the Principles). Specifically, subsection 41(2), section 42A, subsection 61(2) and section 61A of the Principles are removed (Sections 4 and 5). These removed provisions pertain to the management of refundable deposits, accommodation bonds and entry contributions, which will be incorporated into the Aged Care Act 1997 (the Act) once the Aged Care and Other Legislation Amendment Bill 2014 receives Royal Assent (Section 3). This relocation of provisions ensures consistency and clarity in the regulation of aged care services.
The Amending Principle imposes obligations on approved providers to adhere to the new provisions in the Act regarding refundable deposits, accommodation bonds and entry contributions once the Amendment Bill is enacted. Approved providers must ensure that they comply with the updated requirements in the Act, as the obligations previously set out in the Principles will no longer apply (Section 3). This transition requires approved providers to stay informed about legislative changes and adjust their practices accordingly to maintain compliance.
There are no specific offences, penalties, or consequences outlined in the Amending Principle itself. However, failure to comply with the updated provisions in the Act once the Amendment Bill is enacted could result in penalties under the Aged Care Act 1997. The Act may include provisions for fines or other enforcement actions for non-compliance with the new requirements for managing refundable deposits, accommodation bonds and entry contributions. The maximum penalties would be as prescribed within the Act.
In summary, the Amending Principle makes technical amendments to the Fees and Payments Principles 2014 (No. 2) by removing certain subsections and sections that will be incorporated into the Aged Care Act 1997. This ensures that approved providers are aware of the updated legislative requirements and can adjust their practices to remain compliant. While the Amending Principle does not specify penalties, non-compliance with the future Act provisions could result in enforcement actions as outlined in the Aged Care Act 1997.