EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Flexible Care Grant Principles 2008
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.
These Flexible Care Grant Principles 2008 (Flexible Care Grant Principles) are a new set of Principles under the Act and are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Flexible Care Grant Principles 2008
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.
In addition, changes were made to broaden eligibility for community care grants for providers of Community Aged Care Packages, and to extend eligibility for grants to providers of flexible care types (specifically Extended Aged Care at Home (EACH) and Extended Aged Care at Home – Dementia (EACH-D).
In order to achieve this, the Aged Care Amendment (2008 Measures No. 1) Act 2008 inserted a new Part (Part 2.A – Flexible care grants) into the Act. This describes the broad circumstances in which flexible care grants are payable. The Part permits the Commonwealth to make flexible care grants to contribute towards the costs associated with some projects undertaken by approved providers to establish flexible care services or to enhance their capacity to provide flexible care.
The Part also provides for various matters required or permitted under of the Act to be dealt with through Flexible Care Grant Principles.
The purpose of the Flexible Care Grant Principles is to allow providers of EACH and EACH-D to apply for grants to assist with the establishment costs associated with the provision of EACH and EACH-D.
Consultation
The Department of Health and Ageing has undertaken consultation with the sector in relation to the extension of grants to providers of EACH and EACH-D.
Details of Principles are listed at Attachment A.
ATTACHMENT A
NOTES ON CLAUSES
Part 1 – Preliminary
Section 14A.1 Name of Principles
This section provides that these Principles are the Flexible Care Grant Principles 2008.
Section 14A.2 Commencement
This section provides that these Principles will commence on 20 March 2008.
Section 14A.3 Definitions
This section provides the definitions of terms used in these Principles. These terms (Act, GST, project and service infrastructure) are also used in the Community Care Grant Principles and have the same meanings.
The Note provides that certain other expressions used in the Principles are defined in the Act, including approved provider, flexible care and place.
Part 2 - Allocations
Section 14A.4 Purpose of Part (Act s 78B-2)
This section provides that the purpose of this Part is to specify the additional criteria that must be met for the allocation of flexible care grants.
Section 14A.5 Additional criteria
This section specifies the additional criteria that must be met in order for a project to be considered for the allocation of a flexible care grant. They are broadly similar to the additional criteria specified in the Community Care Grant Principles 1997 for community care grants. However, the criteria for flexible care grants differ in a few respects:
- the kind of care that is to be provided under the project must be EACH or EACH-D;
- there is no equivalent to the criterion in section 11.5 for community care grants (that the purpose of the project is a purpose mentioned in subsection 76-1(1) of the Act). This is because this is already required for flexible care grants under subsection 78B-1(1) of the Act;
- there is no reference to whether the approved provider is disadvantaged in meeting the cost of the project because the project is for an isolated or remote community or the project is for an Aboriginal or Torres Strait Islander community. This is not mentioned in the Principles because it is instead mentioned in the Act as a criterion.
Part 3 – Amount of grants
Section 14A.6 Purpose of Part (Act s 78D-1)
This section provides that the purpose of this Part is to specify the matters relevant to the working out of amounts of flexible care grants.
The Note (Amount of Grants) under this section clarifies how this Part will work.
Section 14A.7 Amount of Grants
This section specifies the maximum amount of a flexible care grant, the matters that the Secretary must have regard to in determining the amount of a flexible care grant to an approved provider for flexible care services and the circumstances to be considered in determining the approved provider’s amount of a flexible care grant.
The maximum amount of a flexible care grant is specified to be the sum of $100,000 and the amount of GST payable by the approved provider on that amount. This reflects the high set-up costs associated with these types of care due to the intensive nature of EACH and EACH-D.
The matters that the Secretary must have regard to in determining the amount of a flexible care grant are identical to the matters specified in the Community Care Grant Principles 1997 for community care grants.
Similarly, the circumstances to be considered in determining the approved provider’s amount of a flexible care grant are identical to the circumstances considered for a community care grant under the Community Care Grant Principles 1997.