EXPLANATORY STATEMENT
Statutory Rules 1986 NO 54
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.)
Regulations 5A and 6 of the Nursing Homes Assistance Regulations (the Regulations) were made pursuant to section 37 of the Nursing Homes Assistance Act 1974 (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. The rate of $98.70 per week is prescribed in regulation 5A of the Regulations.
In effect, the fee prescribed in regulation 5A of the Regulations is the standard financial contribution of nursing home patients towards the cost of their nursing home care. The rate currently prescribed is 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 amount of patient contribution has been reviewed to take into account the increase in pension rates which will become effective on 1 May 1986. The rate of patient; contribution will be increased to a level that will maintain the 87.5% rate.
Accordingly, the regulations will amend regulation 5A to increase the rate of the prescribed fee, for the purposes of paragraph 13(1)(a), from $98.70 to $102.20 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, the weekly equivalent of the amount of Commonwealth nursing home benefit prescribed in sub-regulation 28A(2) of the National Health Regulations, and in the case of extensive care patients, $42.00. With the proposed increase in the fee prescribed under paragraph 13(1)(a), corresponding increases will be made to the weekly fees prescribed under paragraph 13(1)(d) of the Act.
Accordingly, the regulations will amend regulation 6 to increase each of the fees prescribed by $3.50 per week.
The regulations will come into operation on 1 May 1986, which is the date the increase in pension rates occurs.
Overview
The Nursing Homes Assistance Act 1974 was enacted to address the need for financial assistance to nursing home proprietors in relation to the provision of nursing home services. This Act was established by the Commonwealth Parliament with the policy objective of ensuring that nursing home patients contribute towards the cost of their care in a manner that is equitable and takes into account changes in social security benefits. The Act allows for agreements between the Commonwealth and nursing home proprietors regarding the provision of financial assistance, and sets out provisions for the fees that nursing home patients must contribute. The Nursing Homes Assistance Regulations (Amendment) 1986, made under the authority of the Minister for Community Services, amended the regulations to adjust the prescribed fees in line with increases in pension rates, ensuring that the contribution from patients remains consistent with policy objectives. These amendments reflect the commitment to maintaining the integrity of the financial assistance framework while adapting to changes in the economic environment.
Scope and Application
The Nursing Homes Assistance Regulations (Amendment) under the Nursing Homes Assistance Act 1974 apply to nursing home proprietors who receive financial assistance from the Commonwealth in connection with the operation of nursing homes or the provision of approved services. This Act is relevant at the Commonwealth level and directly affects nursing home proprietors, patients, and possibly other stakeholders in the nursing home sector. The amendment primarily targets the adjustment of patient contribution rates to reflect changes in pension rates, ensuring that the contribution remains at 87.5% of the maximum standard rate of pension and rent assistance. The increase in the prescribed fee from $98.70 to $102.20 per week, effective from 1 May 1986, will impact the financial obligations of patients in nursing homes. The Act does not explicitly state exclusions, but it is implied that certain specified patients may not be subject to this fee. The amendment to regulation 6 also increases the fees for patients who may receive compensation or damages, aligning these with the new prescribed rates. The amendment reflects the ongoing commitment to maintaining the balance between government assistance and patient contributions.
Key Provisions
The Nursing Homes Assistance Regulations (Amendment) issued under the Nursing Homes Assistance Act 1974, set out key provisions for the fees charged to patients in nursing homes receiving Commonwealth assistance. Regulation 5A, which is amended here, specifies the standard weekly fee a nursing home patient must contribute, currently set at $102.20 per week, reflecting 87.5% of the maximum standard pension and rent assistance rates under the Social Security Act 1947. This fee is to be charged for each patient, excluding certain specified categories. Regulation 6, also amended, addresses fees for patients who may receive compensation or damages related to their nursing home care, setting these fees at a level equivalent to the sum of the fee under Regulation 5A, the weekly Commonwealth nursing home benefit, and an additional amount for extensive care patients. The amendments to these regulations aim to align the fees with the increase in pension rates effective from 1 May 1986.
These regulations impose obligations on nursing home proprietors to charge the specified fees to eligible patients. The proprietor must ensure that the fee structure is adhered to, particularly in relation to the calculation and collection of the standard contribution and any additional fees applicable to patients receiving compensation or damages. The amendments require proprietors to adjust their fee schedules to reflect the new rates as stipulated in the Regulations, ensuring compliance with the legislative requirements.
Breaches of these regulations could result in various consequences, though the Act itself does not explicitly state penalties for non-compliance. However, given the nature of the Act and typical legislative frameworks, non-compliance might lead to administrative or legal actions by the relevant authorities. Such actions could include fines, orders for repayment of improperly collected fees, or even the potential withdrawal of Commonwealth assistance to the nursing home, thereby affecting the proprietor’s ability to operate and receive government support. The specific penalties would depend on the interpretation and enforcement actions taken by the Minister for Community Services or other designated authorities.