EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 65
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 prescribed in Regulation 5A of the Nursing Homes Assistance Regulations (‘the Regulations’).
The fee prescribed in Regulation 5A of the Regulations is in effect the standard 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 equivalent to 87½% of the sum of the current rates of standard age pension and supplementary assistance payable under the Social Services Act 1947. An increase in pension rates with effect from 3 May 1984 made it necessary to increase the amount of the prescribed fee from that date to maintain this relativity. The regulations accordingly amend Regulation 5A to increase the amount of the prescribed fee for the purposes of paragraph 13(1) (a) from $83.65 to $86.80.
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. These fees are in part derived from the fee prescribed under paragraph 13(1)(a) of the Act. The increase, therefore, in that fee required corresponding increases in the weekly fees prescribed under paragraph 13(1)(d) of the Act. Accordingly, the regulations amend Regulation 6 to similarly increase the fees prescribed therein by the amount of $3.15 per week.
The regulations came into operation on 3 May 1984.
Overview
The Nursing Homes Assistance Regulations (Amendment) Statutory Rules 1984, enacted by authority of the Minister for Health, aim to address the need for updating the fees charged to nursing home patients following an increase in pension rates. The Nursing Homes Assistance Act 1974, enacted by the Parliament, established an agreement between the Commonwealth and the proprietors of nursing homes whereby the Commonwealth would cover any approved operating deficit, with patients contributing a set fee towards their care. This fee, set at 87.5% of the sum of the standard age pension and supplementary assistance, was last updated in 1978. With the rise in pension rates effective from 3 May 1984, the regulations amend the Nursing Homes Assistance Regulations to increase the weekly fee from $83.65 to $86.80, ensuring the relativity with pension rates is maintained. Additionally, fees for patients who may receive compensation or damages were also adjusted to reflect this change, increasing by $3.15 per week.
Scope and Application
The Nursing Homes Assistance Act 1974 applies to the Commonwealth and proprietors of nursing homes that have been approved under the Act. It is intended to regulate and support the provision of nursing home care by ensuring that operating deficits can be met, thereby facilitating the smooth operation of approved nursing homes. The Act allows for the establishment of agreements between the Commonwealth and the proprietors of these nursing homes, where the Commonwealth agrees to cover any approved operating deficit that the home incurs in a financial year or other period. This Act has a national reach as it is a Commonwealth Act. Under the Act, the proprietor of a nursing home must charge a standard fee to nursing home patients, except for certain specified classes of patients. This fee is prescribed in the Nursing Homes Assistance Regulations and is subject to adjustments to maintain its relativity to the rates of standard age pension and supplementary assistance. The amendments to the regulations, made under Section 37 of the Act, primarily involve adjusting the weekly fees charged to patients, reflecting the increase in pension rates, to ensure the fees remain in line with the prescribed relativity.
Key Provisions
The Nursing Homes Assistance Regulations (Amendment) (1984) introduce significant changes to the fees that nursing home patients are required to pay under the Nursing Homes Assistance Act 1974 (the Act). Specifically, section 37 of the Act allows for the establishment of regulations concerning the fees charged to patients in approved nursing homes. Under this authority, the Amendment increases the weekly fee from $83.65 to $86.80, effective from 3 May 1984. This adjustment is tied to the increase in pension rates under the Social Services Act 1947, ensuring that the fee remains consistent with 87½% of the sum of the current rates of standard age pension and supplementary assistance.
The Amendment also affects fees for patients who have received, or may be entitled to receive, compensation or damages under state or territory laws. As outlined in paragraph 13(1)(d) of the Act, these fees are partly derived from the standard fee prescribed under paragraph 13(1)(a). Consequently, the Amendment increases these fees by $3.15 per week, as detailed in Regulation 6 of the Nursing Homes Assistance Regulations. This adjustment ensures that the fee structure remains equitable and reflective of the updated standard rates.
Parties governed by the Act, including the Commonwealth and proprietors of approved nursing homes, are required to adhere to the new fee structures as outlined in the Amendment. The Commonwealth, under agreements with nursing home proprietors, must continue to meet any approved operating deficits, while proprietors are mandated to charge the updated weekly fees to eligible patients. Furthermore, proprietors must ensure that all fees charged comply with the amended Regulations, which means updating their billing systems and informing patients of the new rates.
Non-compliance with the amended fees prescribed by the Amendment may result in legal consequences. The Act does not explicitly outline penalties for breach, but any failure to adhere to the prescribed fees could potentially lead to disputes or legal action between the nursing home proprietor and the patient, or between the proprietor and the Commonwealth. The precise nature of any penalties or consequences would depend on the specific circumstances of the breach and the terms of any relevant agreements between the parties involved.