EXPLANATORY STATEMENT
Statutory Rules 1985 No. 87
SUBJECT: NURSING HOMES ASSISTANCE ACT 1974
NURSING HOMES ASSISTANCE REGULATIONS (AMENDMENT)
(Issued by Authority of the Minister for Community Services, Senator the Hon Don Grimes.)
Regulation 5A of the Nursing Homes Assistance Regulations (the Regulations) was made pursuant to section 37 of the Nursing Homes Assistance Act 1974 (the Act). Regulation 5A provides the prescribed fee the proprietor of a nursing home is to charge nursing home patients under paragraph 13(1)(a) of the Act.
Sub-section 12(1) of the Act provides that the Minister may approve an agreement between the Commonwealth and a nursing home proprietor with respect to the provision, by the Commonwealth, of financial assistance in connection with the carrying on of a nursing home or the provision of approved services in association with the carrying on of a nursing home. Paragraph 13(1)(a) of the Act provides that any such agreement is to include a provision under which the proprietor is to charge a fee of $32 per week, or such other rate as is prescribed, for each nursing home patient, other than certain specified patients.
In effect, the fee prescribed in regulation 5A is the standard financial contribution of nursing home patients towards the cost of their nursing home care. Since 1978, and until 1 November 1984, the rate of the patient contribution prescribed was equivalent to 87.5% of the sum of the maximum standard rate of pension and supplementary (rent) assistance payable under the Social Security Act 1947. On 1 November 1984, the minimum rate of financial contribution was increased by 42.45 per week, a rate which was 44.20 per week less than the increase which would have occurred through the application of the 87.5% formula.
The amount of patient contribution has been reviewed following the increase in pension rates which became effective on 2 May 1985. The rate of patient contribution will increase to restore the 87.5% rate.
Accordingly, the regulations will increase the rate of patient contribution to the new level, from $89.25 to $95.55 per week.
Paragraph 13(1)(d) of the Act prescribes the fees to be charged to nursing home patients in nursing homes approved under the Act where the patient has received, has established a 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 in respect of the nursing home care to which the fees relate. Regulation 6 of the Regulations prescribes fees for the purposes of paragraph 13(1)(d). These fees have been set at a rate equivalent to the sum of the fee prescribed under paragraph 13(1)(a) of the Act, and the rate of Commonwealth nursing home benefit prescribed in regulation 28A of the National Health Regulations. With the increase in the fee prescribed under paragraph 13(1)(a), corresponding increases will be made to the weekly fees prescribed by paragraph 13(1)(d) of the Act.
The regulations will increase each of the weekly fees prescibed in regulation 6 in line with the increase in the weekly fee prescribed under paragraph 13(1)(a).
The regulations will come into operation on 13 June 1985, which is the earliest practicable date for their commencement.