Quality of Care Amendment Principles 2008 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2008L00834 Not in force Legislative Instrument

Legislation content

 

 

 

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Ageing

 

 Aged Care Act 1997

 

Quality of Care Amendment Principles 2008 (No. 1)

 

The Aged Care Act 1997 (the Act) provides for the regulation and Commonwealth funding of aged care services.

 

Subsection 96-1(1) of the Act provides for the Minister to make Principles providing for various matters required or permitted by a Part or section of the Act. 

 

Among the Principles made under s 96-1(1) are the Quality of Care Principles 1997 (the Quality of Care Principles).

 

The purpose of the Quality of Care Amendment Principles 2007 (No. 1) (the Amending Principles) is to allow a resident who was receiving a high level of residential care prior to commencement of the Amending Principles  to be taken to continue receiving that care after the introduction of the ACFI.  This will allow such residents to continue to be eligible to receive care and services to be provided for residents receiving a high level of residential care as specified in Schedule 1 Part 3 of the Quality of Care Principles.    

 

In the 2004 Budget, measures were announced to implement a new funding model for residential aged care with a reduced number of funding categories for personal care.  The funding model is also designed to better target funding towards the care of care recipients with challenging behaviours related to dementia and complex nursing and health care needs including palliative care.

 

To initiate these changes the Aged Care Funding Instrument (ACFI) will replace the Resident Classification Scale (RCS) as the means of allocating subsidy to providers of residential aged care.

 

The Amending Principles will commence on the commencement of Schedule 1 to the Aged Care Amendment (Residential Care) Act 2007.

 

The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Consultation

The Department of Health and Ageing has worked closely with a Reference Group to advise on the development of the new funding model.  Members of this reference group include peak industry bodies, consumer bodies, the Aged Care Standards and Accreditation Agency and the Australian Nursing Federation.

 

 

 Regulation Impact Statement

The Office of Regulation Review has advised that no Regulation Impact Statement is required (RIS ID 8112).

 

Details of the Amending Principles are set out in Attachment A.


ATTACHMENT A

 

Details of the Quality of Care Amendment Principles 2008 (No. 1)

 

Section 1 states that the name of the Principles is the Quality of Care Amendment Principles 2008 (No. 1).

 

Section 2 states that the Amending Principles commence on  the commencement of Schedule 1 to the Aged Care Amendment (Residential Care) Act 2007.

 

Section 3 states that Schedule 1 amends the Quality of Care Principles.

 

Schedule 1  Amendments

 

Item 1

This Item removes two definitions from Section 18.3 which are specific to the RCS and hence will be redundant from the date of commencement of the ACFI.

 

Item 2

This Item substitutes new subsections 18.6(3) and 18.6(4) for existing subsection 18.6(3). 

 

New subsection (3) defines which residents will be eligible to receive the services stated in Part 3 of Schedule 1 of the Quality of Care Principles.

 

Paragraph (a) in new subsection (3) will allow a resident who was receiving a high level of residential care on the day before commencement  to be eligible to receive the services stated in Part 3 of Schedule 1 of the Quality of Care Principles.

 

Paragraph (b) in new subsection (3) will allow a resident who is receiving a high level of residential care (as defined in the Act immediately before commencement) to be eligible to receive the services stated in Part 3 of Schedule 1 of the Quality of Care Principles.

 

Paragraph (c) in new subsection (3) will allow a resident who is receiving a high level of residential care (as defined in the Act on or after commencement) to be eligible to receive the services stated in Part 3 of Schedule 1 of the Quality of Care Principles.

 

New subsection (4) inserts a definition of the term commencement used in new subsection (3).

 

 

Overview

The Quality of Care Amendment Principles 2008 (No. 1) were introduced to address a gap in the Aged Care Act 1997 concerning the transition to a new funding model for residential aged care, specifically the Aged Care Funding Instrument (ACFI) replacing the Resident Classification Scale (RCS). Enacted by the Parliament of Australia under the authority of the Minister for Ageing, these principles aim to ensure that residents who were receiving a high level of care prior to the implementation of the ACFI continue to be eligible for the same level of care services. This is part of a broader policy objective to better target funding towards the care of residents with complex needs, including those with dementia and palliative care requirements. The policy objective of these principles is to facilitate a smooth transition to the new funding model by preserving the care standards for existing residents, while also introducing the ACFI to more effectively allocate resources according to the needs of aged care recipients. The principles were developed in consultation with a Reference Group that included various stakeholders such as industry bodies, consumer groups, and professional nursing associations. The introduction of these principles ensures that the legislative changes align with the goals of the new funding model, thereby maintaining the quality of care for aged care residents.

Scope and Application

The Quality of Care Amendment Principles 2008 (No. 1) is a legislative instrument designed to amend the Quality of Care Principles 1997 under the Aged Care Act 1997. This Act governs the regulation and funding of aged care services by the Commonwealth, encompassing both residential and community care services. The Amending Principles apply to entities and individuals providing aged care services within Australia, ensuring that residents who were receiving a high level of residential care prior to the introduction of the Aged Care Funding Instrument (ACFI) continue to receive that level of care. The legislation aims to maintain the continuity of care for residents with high care needs, particularly those with complex nursing and health care needs, including palliative care, as part of the transition from the old Resident Classification Scale (RCS) to the new ACFI funding model. The Amending Principles are applicable nationally, and their provisions are effective from the date of commencement of Schedule 1 to the Aged Care Amendment (Residential Care) Act 2007. The Act does not specify exclusions or thresholds, but it does clarify that certain definitions specific to the RCS will no longer apply from the commencement of the ACFI.

Key Provisions

The Quality of Care Amendment Principles 2008 (No. 1) (section 1) outlines the legislative changes to the existing Quality of Care Principles, which are integral to the Aged Care Act 1997. These principles are designed to ensure that residents who were receiving a high level of care prior to the introduction of the Aged Care Funding Instrument (ACFI) continue to receive the same level of care. This change is particularly important to ensure continuity of care for residents with significant care needs, particularly those with dementia and complex health requirements (section 2). These principles come into effect on the same date as Schedule 1 of the Aged Care Amendment (Residential Care) Act 2007 (section 3). Under these principles, the obligations on aged care providers are to maintain the level of care for residents who were receiving high-level care before the commencement of the Amending Principles. This includes ensuring that such residents continue to receive care and services equivalent to those specified in Part 3 of Schedule 1 of the Quality of Care Principles. Providers must adhere to the definitions and criteria set out in the new subsections 18.6(3) and 18.6(4) to determine eligibility for high-level residential care services (Item 2). These obligations ensure that the transition to the new funding model does not adversely affect the quality of care provided to vulnerable residents. Failure to comply with the Quality of Care Amendment Principles 2008 (No. 1) could result in serious consequences for aged care providers. Although specific penalties are not outlined in the explanatory statement, breaches of the Aged Care Act 1997 generally may lead to civil or criminal penalties, including fines and potential disqualification from providing aged care services. The precise penalties would depend on the nature and severity of the breach, as well as any other relevant provisions of the Act. Compliance with these principles is essential to avoid legal repercussions and ensure the well-being of residents.

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Area of Law
Aged Care
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
Eligibility Criteria
Funding Model
Transitional Provisions

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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.