EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO. 246
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 maximum 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 87.5% of 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 3 November 1983 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 $80.50 to $83.65.
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 patients’ 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 3 November 1983, 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, by amounts ranging from $14.70 in Tasmania to $42.35 in South Australia and the Northern Territory to reflect these other increases.
The regulations came into operation on 3 November 1983.
Overview
The Nursing Homes Assistance Regulations (Amendment) 1983, issued under the authority of the Minister for Health, were introduced to amend the Nursing Homes Assistance Regulations 1974. This amendment was necessitated by the increase in pension rates effective from 3 November 1983, which required an adjustment to the prescribed fees for nursing home patients to maintain the relativity with the current rates of the standard age pension and supplementary assistance. The regulations were enacted to ensure that the maximum financial contribution by patients towards their nursing home care, as stipulated under the Nursing Homes Assistance Act 1974, remains consistent with these increased pension rates. The policy objective was to align the prescribed fees with the updated social security payments, ensuring that nursing home costs for patients remained proportionate to their income levels.
Scope and Application
The Nursing Homes Assistance Regulations (Amendment) Statutory Rules 1983 No. 246, issued under the authority of the Minister for Health, pertain to the Nursing Homes Assistance Act 1974. This legislation applies to the proprietor of a nursing home approved under the Act, who must enter into an agreement with the Commonwealth to meet any approved operating deficit incurred by the home. The proprietor is also obligated to charge a specific fee for nursing home patients, which is currently prescribed as $32 per week, except for certain specified classes of patients. The Act extends to the entire Commonwealth and governs the financial contributions from patients towards their nursing home care. The regulations are designed to maintain the relativity of the prescribed fee to the current rates of standard age pension and supplementary assistance. The amendments to the regulations, effective from 3 November 1983, adjust the prescribed fee from $80.50 to $83.65 and the corresponding fees for extensive and ordinary care patients across different states and territories, based on the increases in pension rates and Commonwealth nursing home benefits.
Key Provisions
The Nursing Homes Assistance Regulations (Amendment) under the Nursing Homes Assistance Act 1974 (the Act) primarily amend Regulation 5A and Regulation 6 to update the prescribed fees that nursing home patients are required to pay. Specifically, section 12(1) of the Act allows the Commonwealth to cover any approved operating deficit incurred by a nursing home, and section 13(1)(a) mandates that nursing home proprietors charge a weekly fee to patients, currently set at $83.65 (Regulation 5A). This amount is pegged to 87.5% of the sum of the current rates of standard age pension and supplementary assistance payable under the Social Services Act 1947, reflecting the increase in pension rates effective from 3 November 1983.
The Regulations also address fees for patients who may receive compensation or damages under state or territory law, as outlined in section 13(1)(d) of the Act. Regulation 6 prescribes these fees for 'extensive care patients' and 'ordinary care patients', adjusting them based on the Commonwealth nursing home benefit prescribed under the National Health Regulations. Consequently, the fees were increased to account for the higher amounts, ranging from $14.70 in Tasmania to $42.35 in South Australia and the Northern Territory, to maintain the relativity with other benefits.
These amendments impose obligations on nursing home proprietors to ensure they are charging the correct fees as prescribed by the Regulations. Failure to adhere to these fee structures could result in non-compliance with the Act, potentially leading to legal repercussions. The precise obligations and requirements include accurately calculating and applying the prescribed fees to patients, maintaining proper documentation of these charges, and ensuring that the Commonwealth's contributions are correctly accounted for in the nursing home’s financial records.
Any breach of the provisions under the Act or the amended Regulations could result in civil or criminal consequences. While the specific offences and penalties are not detailed in the text, generally, non-compliance with nursing home assistance regulations can lead to penalties, fines, or other enforcement actions by regulatory bodies. The maximum penalties for such breaches could vary depending on the severity and intent of the violation, but they often include substantial fines and, in some cases, potential criminal charges for wilful non-compliance.