EXPLANATORY STATEMENT
AGED CARE ACT 1997
Flexible Care (Transition Care) Subsidy Amount Determination 2005
The Aged Care Act 1997 (“the Act”) provides for the funding of aged care services. Persons who are approved under the Act to provide flexible aged care services can be eligible to receive flexible care subsidy payments in respect of the care they provide to approved care recipients.
Subsection 50-2(1) of the Act provides that the Flexible Care Subsidy Principles may specify the kinds of care for which flexible care subsidy may be payable. The Flexible Care Subsidy Principles 1997 presently provide for three types of flexible care. These kinds of care include extended aged care at home services, multi-purpose services and innovative care services. A further category, transition care, is being included in those Principles through the Flexible Care Subsidy Amendment Principles 2005 (No.1).
Paragraph 52-1(1)(a) provides that the Minister may determine in writing the amount of the Flexible Care Subsidy.
The present Determination (“the Determination”) sets the amount of flexible care subsidy that is payable for flexible care in the form of transition care.
Regulation impact statement
The Office of Regulation Review (ORR) assessed the proposed amendments and determined that the preparation of a Regulation Impact Statement was not required (ORR ID number 7299)
Consultation
The parameters of transition care have been developed through a consultation process with State and Territory Government representatives. All States and Territories were included in a Transition Care Task Group, along with appropriate clinical representatives. The Task Group was consulted prior to setting the amount of the subsidy, which took into account the issues the Group raised. The Task Group accepted the amount set.
ATTACHMENT
NOTES ON CLAUSES
Clause 1 provides that the Determination is to be cited as the Flexible Care (Transition Care) Subsidy Amount Determination 2005.
Clause 2 provides that the Determination commences on 1 July 2005.
Clause 3 provides definitions of “Act”, which means the Aged Care Act 1997, and “transition care”, which has the meaning given by section 15.28 of the Flexible Care Subsidy Principles 1997 (introduced in the Flexible Care Subsidy Amendment Principles 2005 (No. 1) ).
Subclause 4(1) sets out the amount of the flexible care (transition care) subsidy which is payable to an approved provider in respect of a day and a care recipient who is provided with flexible care in the form of transition care on that day, as being $102.77.
Subclause 4(2) is intended to overcome a potential inconsistency with a previous determination made under paragraph 52-1(b) of the Act on 23 June 2004, and known as “ACA Ch.3 No. 17/2004”. While the determination known as “ACA Ch.3 No. 17/2004” only applied to flexible care subsidy payable for flexible care provided in the form of extended aged care at home or multi-purpose services, the language of the determination could be interpreted to suggest that it exhaustively determines the amounts of flexible care subsidy.
Overview
The Aged Care Act 1997, enacted by the Australian Parliament, provides for the funding and regulation of aged care services within Australia. This Act was introduced to address the growing need for structured and funded care services for the elderly, ensuring that they receive appropriate care and support as they age. The Act facilitates the provision of flexible aged care services, including the payment of subsidies to approved providers for the care they deliver to approved recipients. The Flexible Care (Transition Care) Subsidy Amount Determination 2005 further refines these provisions by specifically addressing the amount of subsidy payable for transition care services under the Act.
This Determination, made under the authority of the Aged Care Act 1997, was developed in consultation with State and Territory Government representatives to ensure that the subsidy amount adequately reflects the needs and costs associated with transition care. The policy objective is to provide a consistent and fair subsidy amount for transition care, supporting the provision of this essential service and ensuring that care recipients receive the necessary support during transitional phases in their care. The Determination sets the flexible care subsidy for transition care at $102.77 per day per care recipient, effective from 1 July 2005.
Scope and Application
The Flexible Care (Transition Care) Subsidy Amount Determination 2005 applies to approved providers who offer flexible aged care services under the Aged Care Act 1997, specifically those providing transition care to approved care recipients. This legislation sets the amount of the flexible care subsidy payable for transition care services, which are defined under section 15.28 of the Flexible Care Subsidy Principles 1997. The Determination is effective from 1 July 2005 and establishes that the subsidy amount for each day a care recipient receives transition care is $102.77. This Determination was developed through consultations with representatives from all State and Territory governments, as well as clinical representatives, ensuring the parameters of transition care were comprehensively considered. The Act applies across the Commonwealth and is subject to amendments through subordinate instruments, which may further define or modify the application of the subsidy.
Key Provisions
The Flexible Care (Transition Care) Subsidy Amount Determination 2005 (the Determination) is a legislative instrument under the Aged Care Act 1997. It sets out the amount of the flexible care subsidy that is payable for flexible care in the form of transition care. This subsidy is intended to support approved providers who offer transition care services to eligible care recipients. The Determination is structured to provide clarity and legal certainty regarding the financial support available for these services.
The main operative sections of the Determination (clauses 1-4) establish the name and commencement date of the Determination (clauses 1 and 2), define key terms such as “Act” and “transition care” (clause 3), and specify the subsidy amount for transition care services (clause 4). Clause 4(1) explicitly states that the flexible care subsidy for transition care is set at $102.77 per day per care recipient. Clause 4(2) addresses an inconsistency with a previous determination, clarifying that the current Determination applies specifically to transition care and does not exhaust the types of flexible care subsidies that may be payable.
The Determination imposes obligations on parties and entities it governs by specifying the conditions under which the flexible care subsidy for transition care is payable. Approved providers must meet the eligibility criteria set out in the Aged Care Act 1997 and the Flexible Care Subsidy Principles 1997 to qualify for the subsidy. They must also ensure that the transition care services provided meet the standards and requirements established by the Act and the relevant principles. The Determination mandates that the subsidy amount of $102.77 be paid for each day a care recipient receives transition care services, provided the services are delivered by an approved provider.
Failure to comply with the provisions of the Determination may result in civil or criminal consequences. While the Determination itself does not explicitly outline specific penalties for breaches, the Aged Care Act 1997 and associated regulations may provide for penalties in such cases. The Act includes provisions for the recovery of overpayments, fines, and other enforcement measures to ensure compliance with the subsidy arrangements. The maximum penalties for breaches would depend on the specific nature of the non-compliance and would be in accordance with the relevant sections of the Aged Care Act 1997 and any applicable regulations.