EXPLANATORY STATEMENT
Statutory Rules 1985 No. 288
SUBJECT: NATIONAL HEALTH ACT 1953
NATIONAL HEALTH REGULATIONS (AMENDMENT)
(Issued by authority of the Minister for Community Services, Senator the Hon Don Grimes.)
Regulations 28A and 29 of the National Health Regulations (the Regulations) were made pursuant to section 140 of the National Health Act 1953 (the Act).
Regulation 28A
Sub-section 47(1) of the Act provides that there is payable to the proprietor of an approved nursing home, in respect of each qualified nursing home patient, for each day on which the patient receives nursing home care in that nursing home a Commonwealth benefit of -
(a) where the nursing home is situated in New South Wales - $13.65 or such higher amount as is prescribed from time to time;
(b) where the nursing home is situated in Victoria - $19.65 or such higher amount as is prescribed from time to time;
(c) where the nursing home is situated in Queensland - $11.80 or such higher amount as is prescribed from time to time;
(d) where the nursing home is situated in South Australia - $17.40 or such higher amount as is prescribed from time to time;
(e) where the nursing home is situated in Western Australia - $11.75 or such higher amount as is prescribed from time to time;
(f) where the nursing home is situated in Tasmania - $14.85 or such higher amount as is prescribed from time to time;
(g) where the nursing home is situated in the Australian Capital Territory - $13.65 or such higher amount as is prescribed from time to time; or
(h) where the nursing home is situated in the Northern Territory - $17.40 or such higher amount as is prescribed from time to time.
Since 1977 the level of nursing home benefits has been adjusted annually on a State by State basis so that it, together with the minimum patient contribution, covers the fees charged for 70% of non-Government nursing home beds approved under the Act in each State.
The amounts below are currently prescribed in regulation 28A of the National Health Regulations for the purposes of each of the following paragraphs of sub-section 47(1) -
(a) $33.35;
(b) $48.50;
(c) $28.10;
(d) $39.05;
(e) $31.55;
(f) $27.80;
(g) $33.35; and
(h) $39.05.
In May 1985, the Treasurer announced that the maximum level of benefits would be frozen at November 1984 levels in Victoria, South Australia and the Northern Territory, and would also be frozen for all State and Territory Government nursing homes approved under the Act.
The rates of benefit for non-Government nursing homes in the States where the freeze does not apply have been reviewed. Benefits will be increased to cover the fees charged for 70% of non-Government nursing home beds in these States and the Australian Capital Territory. The benefit in South Australia will also be increased by $3.00 per day to meet the cost of the introduction of the 38 hour week for nursing home staff in South Australia. The level of benefit in the Northern Territory is currently maintained at the same level as South Australia, and it will also be increased by $3.00 per day.
Sub-section 47(4) of the Act provides that regulations made for the purpose of sub-section 47(1) may prescribe different amounts of Commonwealth benefit payable in respect of different classes of approved nursing homes, being classes of nursing homes identified in or in accordance with those regulations.
Accordingly, the regulations will repeal regulation 28A of the National Health Regulations and substitute a new regulation which prescribes the amounts of Commonwealth benefit payable in respect of Government nursing homes and nursing homes other than Government nursing homes for the purposes of each paragraph of sub-section 47(1).
Regulation 29
Sub-section 47(2) of the Act provides that where a qualified nursing home patient is receiving nursing home care in a non-Government nursing home, the amount of Commonwealth benefit payable under sub-section 47(1) is reduced by the amount that the fees charged in respect of the nursing home care of that patient for that day are exceeded by the sum of -
• the amount of Commonwealth benefit otherwise payable under sub-section 47(1) (sub-paragraph 47(2)(b)(i));
• the amount (if any) of Commonwealth extensive care benefit (sub-paragraph 47(2)(b)(ii)); and
• $6.70. or the amount prescribed (sub-paragraph 47(2)(b)(iii)).
In effect, sub-paragraph 47(2)(b)(iii) of the Act prescribes the minimum rate of daily patient contribution that a qualified nursing home patient who is accommodated in an approved non-Government nursing home is required to contribute towards his or her care and treatment. The rate of $13.65 is prescribed by regulation 29 of the Regulations.
The rate of the patient contribution prescribed by that regulation is currently at a level equivalent to 87.5% of the sum of the maximum standard rate of pension and rent assistance payable under the Social Security Act 1947.
The rate of patient contribution has been reviewed to take into account the increase in pension rates which will become effective on 1 November 1985. The patient contribution rate will increase to a level that will maintain the 87.5% rate.
The regulation will increase the rate of patient contribution to the new level.
The regulations will come into operation on 14 November 1985, which is the first pension pay-day after the increase in pension rates occurs.