EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 309
ISSUED BY AUTHORITY OF THE MINISTER FOR HEALTH
NURSING HOMES ASSISTANCE ACT 1974
NURSING HOMES ASSISTANCE REGULATIONS (AMENDMENT)
Section 37 of the Nursing Homes Assistance Act 1974 (‘the Act’) provides that the Governor-General may make regulations prescribing all matters required or permitted by the Act to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Sub-section 12(1) of the Act provides that the Commonwealth and the proprietor of a nursing home approved under the Act may enter into an agreement under which the Commonwealth meets any approved operating deficit incurred by the home in a financial year or other period. Paragraph 13(1) (a) of the Act provides that any such agreement between the Commonwealth and the proprietor of a nursing home is to include a provision under which the proprietor is to charge a fee of $32 per week or such other amount as is prescribed for nursing home patients other than certain specified classes of patients. Such an amount is currently prescribed in Regulation 5A of the Nursing
Homes Assistance Regulations (‘the Regulations’). The fee prescribed in Regulation 5A is in effect the rate of financial contribution towards the cost of their nursing home care by patients in nursing homes approved under the Act. Since 1978 the amount prescribed has been determined by reference to the sum of the current rates of standard age pension and supplementary assistance payable under the Social Services Act 1947. The increase in pension rates with effect from 1 November 1984 made it necessary to increase the amount of the prescribed fee from that date. The regulations accordingly amend Regulation 5A to increase the amount of the prescribed fee for the purposes of paragraph 13(1)(a) of the Act from $86.80 to $89.25.
Paragraph 13(1) (d) of the Act provides for the prescription of the fees to be charged to nursing home patients in nursing homes approved under the Act where the patient has received, has established his right to receive, or may be entitled to receive, a payment by way of compensation or damages under a law of a State or Territory. Fees for the purposes of paragraph 13(1) (d) are prescribed in Regulation 6 of
the Regulations in respect of ‘extensive care patient’ and ‘ordinary care patients’. These fees are based on the sum of the fee prescribed under paragraph 13(1)(a) of the Act and the amount of Commonwealth nursing home benefit prescribed in the National Health Regulations in respect of each State or Territory for the purposes of sub-section 47(1) of the National Health Act 1953. Increases, therefore, in both the fee prescribed under paragraph 13(1)(a) of the Act, and Commonwealth nursing home benefits, with effect from 1 November 1984, required corresponding increases in the weekly fees prescribed under paragraph 13(1)(d) of the Act from that date. Accordingly, the regulations amend Regulation 6 to increase the fees prescribed therein to reflect these other increases.
The regulations come into operation on 1 November 1984.
Overview
The Nursing Homes Assistance Regulations (Amendment) Statutory Rules 1984 No. 309, issued by authority of the Minister for Health, amend the Nursing Homes Assistance Regulations to address the increase in pension rates and the Commonwealth nursing home benefit that came into effect from 1 November 1984. Enacted by the Parliament, the Nursing Homes Assistance Act 1974 aims to provide financial assistance to nursing homes, ensuring that operating deficits are met and appropriate fees are charged to patients. This amendment seeks to align the prescribed fees with the updated rates, maintaining the financial viability of nursing homes and ensuring that patients contribute fairly towards their care costs in accordance with the policy objectives outlined in the Act.
Scope and Application
The Nursing Homes Assistance Regulations (Amendment) issued under the Nursing Homes Assistance Act 1974, apply to proprietors of nursing homes approved under the Act, who must comply with the prescribed fees for nursing home patients. These regulations are applicable nationwide across Australia, as they are issued by the Commonwealth Government. They are intended to adjust the weekly fees charged to nursing home patients in response to changes in pension rates and Commonwealth nursing home benefits, which took effect from 1 November 1984. The amendment specifically adjusts the prescribed fee for nursing home patients from $86.80 to $89.25 per week, and correspondingly increases the fees for extensive care patients and ordinary care patients to reflect these changes. The amendment is operational from 1 November 1984 and serves to align the financial contributions of nursing home patients with the updated rates of standard age pension and supplementary assistance, as well as Commonwealth nursing home benefits.
Key Provisions
The Nursing Homes Assistance Regulations (Amendment) establish key provisions regarding the fees that nursing home patients must pay under the Nursing Homes Assistance Act 1974. Under section 37 of the Act, these regulations are necessary for carrying out and giving effect to the Act, specifically in relation to the fees prescribed for nursing home care. Regulation 5A has been amended to increase the weekly fee for nursing home patients from $86.80 to $89.25, effective from 1 November 1984. This adjustment reflects the increases in standard age pension and supplementary assistance rates under the Social Services Act 1947. Furthermore, Regulation 6 has been updated to account for corresponding increases in fees for patients who have received, have established a right to receive, or may be entitled to receive compensation or damages under state or territory laws. These fees are determined by the sum of the fee prescribed under section 13(1)(a) of the Act and the Commonwealth nursing home benefit prescribed in the National Health Regulations.
The regulations impose specific obligations on parties governed by the Act, primarily on the proprietors of nursing homes approved under the Act. These obligations include charging a prescribed fee to patients as outlined in Regulation 5A, which is $89.25 per week effective from 1 November 1984. For patients who may be entitled to compensation or damages, Regulation 6 stipulates that proprietors must charge fees based on the prescribed sum, including the increased nursing home benefit. Additionally, the proprietor must ensure that any agreement with the Commonwealth regarding operating deficits includes a provision for the prescribed fee, as stipulated under section 13(1)(a) of the Act.
Breaching the obligations outlined in the regulations can result in various legal consequences. While the explanatory statement does not detail specific offences, penalties, or consequences for non-compliance, it is reasonable to infer that failure to adhere to the prescribed fees and obligations could lead to legal action, including potential fines or other penalties as stipulated in the Act. The precise penalties would likely be detailed in other sections of the Act or in related legislation, but the regulations themselves underscore the importance of compliance to ensure the financial stability of nursing homes and the fair contribution from patients.