Quality Agency Principles Amendment Principle 2016

Administered by Department of Health, Disability and Ageing

Legislation au F2016L00830 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Aged Care

 

Australian Aged Care Quality Agency Act 2013

 

Quality Agency Principles Amendment Principle 2016

 

Purpose

The Quality Agency Principles Amendment Principle 2016 (the Amending Principle) amends the Quality Agency Principles 2013 to simplify arrangements for full cost recovery of accreditation services.

The Amending Principle removes details of how accreditation fees are calculated and indexation arrangements of accreditation fees. This will be replaced by cost recovery fees for accreditation services set by the Chief Executive Officer of the Australian Aged Care Quality Agency (Quality Agency) under Section 15 of the Australian Aged Care Quality Agency Act 2013 (the Act).  The fees will be publically available on the Quality Agency website http://www.aacqa.gov.au.

Background

As part of the 2015–16 Budget measures, the Australian Government announced its decision to expand the scope of cost recovery arrangements for residential aged care accreditation services.  This is line with the Australian Government policy on cost recovery which sets out that users of Government services pay the efficient cost of those services.

Commencement

The instrument commences the day after the Amending Principle is registered on the Federal Register of Legislation.

Consultation

Consultation with the aged care sector on the expansion of cost recovery for accreditation services was first undertaken in January 2016 through the National Aged Care Alliance Quality Advisory Group. Further consultation is being undertaken through the exhibition of a draft Cost Recovery Implementation Statement on the Quality Agency website in May 2016.

Regulation Impact Statement (RIS)

A Short Form Regulation Impact Statement (RIS) for the May 2015-16 cost recovery Budget proposal has been assessed by the Office of Best Practice Regulation (OBPR) as compliant with Australian Government requirements (OBPR ID 18287).

This Amending Principle is a legislative instrument for the purposes of the Legislation Act 2003.

 

Explanation of the provisions

Section 1

This section provides how the proposed instrument is to be cited, that is, as Quality Agency Principles Amendment Principle 2016.

Section 2

This section sets out the commencement of this instrument.  The commencement date is on registration of the Amending Principle.

Section 3

This section provides the authority for making this instrument. This instrument is made under section 53 of the Australian Aged Care Quality Agency Act 2013 (the Act).

Under subsection 33(3) of the Acts Interpretation Act 1901 (the Acts Interpretation Act), where an act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Accordingly, the power in section 53 of the Act is relied on, in conjunction with subsection 33(3) of the Acts Interpretation Act, to vary the Quality Agency Principles.

Section 4

This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 – Amendments

 

Quality Agency Principles 2013

Item 1 Section 1.4 - Definitions 

This item repeals the definition of CPI number as this definition is only used in the indexation of application fees in Chapter 2 Part 7 which is to be repealed by item 9 below.

Item 2 - Section 1.4 - Definitions 

This item repeals the definition of earlier CPI number as this definition is only used in the indexation of application fees in Chapter 2 Part 7 which is to be repealed by item 9 below.

Item 3 - Section 1.4 - Definitions 

This item repeals the definition of indexable amount as this definition is only used in the indexation of application fees in Chapter 2 Part 7 which is to be repealed by item 9 below.

Item 4 - Section 1.4 - Definitions 

This item repeals the definition of latest CPI number as this definition is only used in the indexation of application fees in Chapter 2 Part 7 which is to be repealed by item 9 below.

Item 5 Part 1 Division 1 Section 2.3 (1)(d) 

This item omits the words ‘under section 2.5’ from paragraph 2.3(1)(d) because section 2.5 is to be repealed by item 6 below.

Item 6 Part 1 Division 1 Section 2.5 

This item repeals section 2.5 as the fees are no longer going to be set out in the Quality Agency Principles, and will instead by published directly by the CEO of the Quality Agency on the Agency’s website.

Item 7 Part 1 Division 3 Subdivision B Section 2.10 

This item makes minor editorial change to section 2.10 to cross-reference applications made under section 2.2 of the Principles.

Item 8 Part 1 Division 3 Subdivision B Section 2.10 

This item makes a minor editorial change to section 2.11 to cross-reference applications made under section 2.2 of the Principles.

Item 9 Item 6 Part 7 Miscellaneous Section 2.73 

This item repeals all of Part 7 of Chapter 2 of the Principles, which sets out how application fees are indexed each year. Instead the CEO of the Quality Agency will publish the applicable application fees and update the published figures as necessary after indexation.

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Quality Agency Principles Amendment Principle 2016

This Principle is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Background

The legislative instrument reflects the Government’s commitment to reduce red tape and administrative costs on business.

The Quality Agency Principles Amendment Principle 2016 amends the Quality Agency Principles 2013 to implement the 2015-16 Budget decision to cost recover, through a fee for service, accreditation services provided by the Australian Aged Care Quality Agency (the Quality Agency). These services include initial accreditation and re-accreditation.

Currently, accreditation services are partially cost recovered by the Quality Agency. Legislative amendments are required as a result of the 2015-16 Budget decision to fully cost recover accreditation services (initial accreditation, accreditation of previously accredited services and re-accreditation) by the Quality Agency from approved providers of Commonwealth funded residential aged care services.

The amendments do not affect any human rights in relation to the rights of approved providers.

Human rights implications

This Principle does not engage any of the applicable rights or freedoms.

Conclusion

This Principle is compatible with human rights as it does not raise any human rights issues.

 

 

The Hon Sussan Ley MP, Minister for Aged Care

Overview

The Australian Aged Care Quality Agency Act 2013 was enacted to ensure that aged care services in Australia meet quality and safety standards. The Quality Agency Principles Amendment Principle 2016 was introduced to address the need for full cost recovery of accreditation services by the Australian Aged Care Quality Agency, as part of the 2015-16 Budget measures. This legislative instrument simplifies the arrangements for cost recovery by removing the detailed calculations of accreditation fees and their indexation, and instead sets the fees to be determined by the Chief Executive Officer of the Agency, to be published on the Agency’s website. The policy objective is to align with the Australian Government’s policy on cost recovery, ensuring that users of Government services pay the efficient cost of those services. The instrument was enacted by the Minister for Aged Care, pursuant to Section 53 of the Australian Aged Care Quality Agency Act 2013. The Amending Principle is intended to streamline the process of fee setting for accreditation services, making the cost recovery process more efficient and transparent. By repealing the detailed indexation of fees and replacing it with a system of cost recovery fees set by the CEO, the legislation ensures that the Quality Agency can adjust fees in response to changing costs while maintaining a clear and accessible fee structure for service providers. This change is intended to reduce administrative burden and promote cost efficiency in the delivery of aged care services. The legislative instrument is designed to be compatible with human rights, with no adverse implications on the rights of approved providers of Commonwealth funded residential aged care services.

Scope and Application

The Australian Aged Care Quality Agency Act 2013 applies to the Australian Aged Care Quality Agency (Quality Agency) and its operations in accrediting residential aged care services, which includes the provision of initial accreditation, re-accreditation, and the setting of fees for these services. The Act operates at the Commonwealth level, governing the Quality Agency’s activities across Australia. The Quality Agency Principles Amendment Principle 2016 simplifies the full cost recovery of accreditation services by removing the detailed calculations and indexation arrangements of accreditation fees, instead setting these fees to be determined by the Chief Executive Officer of the Quality Agency and made publicly available on the Agency’s website. The amendment streamlines the process for setting fees and removes the need for specific legislative detail in this area. The Quality Agency Principles Amendment Principle 2016 itself commences on the day after its registration on the Federal Register of Legislation. The Act extends its application through subordinate instruments, which may include regulations or guidelines, to ensure that the Quality Agency’s operations align with the broader policy objectives of the Australian Government.

Key Provisions

The Quality Agency Principles Amendment Principle 2016 (the Amending Principle) brings about significant changes to the Quality Agency Principles 2013, primarily by simplifying the arrangements for the full cost recovery of accreditation services provided by the Australian Aged Care Quality Agency (Quality Agency) (section 1). This includes the removal of specific details on how accreditation fees are calculated and the indexation arrangements for these fees, which will be replaced by cost recovery fees set by the Chief Executive Officer of the Quality Agency under Section 15 of the Australian Aged Care Quality Agency Act 2013 (the Act) (section 1). These new fees will be publicly available on the Quality Agency’s website (section 1). The Amending Principle imposes specific obligations on the Quality Agency, including the responsibility to set and publish cost recovery fees for accreditation services (section 15 of the Act). It also requires the Quality Agency to ensure that these fees are made publicly available on their website, thereby enhancing transparency and accessibility for all stakeholders (section 1). The Quality Agency is further obligated to periodically update these fees as necessary, reflecting changes in the cost of providing accreditation services (section 1). Under the Amending Principle, breaches of the provisions may lead to civil or criminal consequences depending on the nature and severity of the breach. While specific penalties are not detailed in the explanatory statement, the overarching legislative framework may include provisions for fines or other penalties for non-compliance with the Act. The maximum penalties for breaches of the Australian Aged Care Quality Agency Act 2013 can vary, with potential sanctions including substantial fines and, in some cases, imprisonment for serious breaches. The exact penalties would be determined based on the specific nature of the offence and the provisions of the Act. The Amending Principle also aligns with the Australian Government’s policy on cost recovery, ensuring that users of Government services pay the efficient cost of those services. This principle is consistent with the Government's broader commitment to reduce red tape and administrative costs on business, thereby enhancing the efficiency and effectiveness of service delivery within the aged care sector. This legislative change is a response to the 2015-16 Budget measures, which aimed to expand the scope of cost recovery arrangements for residential aged care accreditation services.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.