EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Residential Care Grant Amendment Principles 2008 (No. 1)
The Aged Care Act 1997 (the Act) provides for the funding of aged care services. Persons who are approved under the Act to provide residential aged care services (approved providers) can be eligible to receive residential care subsidy payments in respect of the care they provide to approved care recipients.
Subsection 96-1(1) of the Act allows the Minister to make Principles providing for various matters required or permitted by a Part or section of the Act.
The Residential Care Grant Principles 1997 (the Residential Care Grant Principles) is one of the sets of Principles made under the Act.
The purpose of the Residential Care Grant Amendment Principles 2008 (No. 1) (the Amending Principles) is detailed below. The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Residential Care Grant Amendment Principles 2008 (No. 1)
The Aged Care Amendment (2008 Measures No. 1) Act 2008 amended the Act and related legislation to simplify, and make fairer, the fees and charges paid by residents of aged care facilities as well as the subsidies paid by the Commonwealth Government for residents who cannot fully meet their own care and accommodation costs.
One of the changes that was made to the Act (in order to give effect to the new system of fees and charges) was the creation of a new class of residents for which residential care subsidy is payable under Chapter 3 of the Act. The new class of ‘supported residents’ joins the existing classes of residents known as ‘assisted residents’ and ‘concessional residents’.
As the result of the creation of this new class, consequential changes were required throughout the Act and are also required throughout the Aged Care Principles.
The purpose of these Amending Principles is to include ‘supported residents’ alongside the existing references to concessional and assisted residents in the Residential Care Grant Principles.
Consultation
The Department of Health and Ageing undertook extensive consultation on the policy that is implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 which amends the Act. These Amending Principles flow from these amendments.
Details of the amendments to the Principles are listed at Attachment A.
ATTACHMENT A
NOTES ON CLAUSES
Clause 1 states that the name of the amending Principles is the Residential Care Grant Amendment Principles 2008 (No. 1).
Clause 2 states that the Principles commence on 20 March 2008.
Clause 3 states that Schedule 1 amends the Residential Care Grant Principles.
Schedule 1 Amendments
Item 1
This is a consequential amendment that results from the creation of a new class of residents (supported residents) for which residential care subsidy is payable under Chapter 3 of the Act.
Section 20.5 of the Residential Care Grant Principles specifies additional groups of people for the criteria for allocation of residential care grants – namely people who are concessional or assisted residents in urban or regional areas (other than rural or remote areas).
This item amends this section so that it specifies supported, concessional or assisted residents in urban or regional areas (other than rural or remote areas).
Item 2
This is a consequential amendment that results from the creation of a new class of residents (supported residents) for which residential care subsidy is payable under Chapter 3 of the Act.
Subsection 20.7F(5) provides that the Secretary must ensure, as far as practicable, that priority is given to grants for projects that meet the requirements of subsection (3), (4) or (5).
Subsection (5) provides that a project meets the requirements of this subsection if it is a project for which the proportion of care recipients who are concessional residents, assisted residents, or people with special needs, is higher than the proportion for similar projects that the Secretary is to consider at the same time.
This item amends subsection 20.7F(5) such that a project will meet the requirements of the subsection if it is a project for which the proportion of care recipients who are supported, concessional or assisted residents, or people with special needs, is higher than the proportion for similar projects that the Secretary is to consider at the same time.