Residential Care Grant Amendment Principles 2008 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2008L00902 Not in force Legislative Instrument

Legislation content

 

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. 

 

 

 

 

 

 

 

 

Overview

The Aged Care Act 1997, enacted by the Parliament of Australia, governs the funding of aged care services, ensuring that approved providers can receive residential care subsidy payments for the services they deliver to approved care recipients. One of the key legislative instruments under this Act is the Residential Care Grant Principles 1997, which was amended by the Residential Care Grant Amendment Principles 2008 (No. 1). These Amending Principles, issued by the Minister for Ageing, aim to address the policy gap created by the introduction of a new class of residents, referred to as "supported residents," as part of the Aged Care Amendment (2008 Measures No. 1) Act 2008. This new classification was intended to simplify and make fairer the fees and charges for aged care residents, as well as the subsidies paid by the Commonwealth Government. The Amending Principles ensure that the Residential Care Grant Principles now include references to supported residents, alongside existing references to concessional and assisted residents, thereby reflecting the changes in the legislative framework.

Scope and Application

The Residential Care Grant Amendment Principles 2008 (No. 1) amends the Residential Care Grant Principles, which were made under the Aged Care Act 1997. The Act provides for the funding of aged care services, and approved providers who offer residential aged care services can be eligible to receive residential care subsidy payments for the care they provide to approved care recipients. These Amending Principles were created to reflect the introduction of a new class of ‘supported residents’ in the Act, alongside the existing classes of ‘assisted residents’ and ‘concessional residents’. The Amending Principles ensure that the Residential Care Grant Principles include references to this new class of supported residents. The Amending Principles apply nationally as they are based on federal legislation, and there are no stated exclusions, exemptions, or thresholds in the text. The application of the Act is extended through subordinate instruments such as the Residential Care Grant Principles and these Amending Principles.

Key Provisions

The main operative sections of the Residential Care Grant Amendment Principles 2008 (No. 1) pertain to the amendments made to the Residential Care Grant Principles. These amendments are necessary to accommodate the introduction of a new class of residents, known as 'supported residents', who are eligible for residential care subsidy (section 3). This new class joins the existing categories of 'concessional residents' and 'assisted residents'. The changes reflect the legislative amendments introduced by the Aged Care Amendment (2008 Measures No. 1) Act 2008, which aims to simplify and make fairer the fees and charges for aged care facilities, as well as the subsidies provided by the Commonwealth Government. The Residential Care Grant Amendment Principles impose specific obligations on the parties governed by the Act. These obligations include ensuring that the Residential Care Grant Principles are updated to include references to 'supported residents' alongside 'concessional' and 'assisted residents'. This is crucial for maintaining consistency and fairness in the allocation of residential care grants. The principles must be amended to reflect the new class of residents, as specified in Schedule 1 of the Amending Principles. Additionally, the Secretary must ensure that priority is given to grants for projects that serve a higher proportion of care recipients who are supported, concessional, or assisted residents, or people with special needs, compared to similar projects. Breach of the provisions set out in the Amending Principles may lead to various consequences. While the specific offences and penalties are not detailed within the Amending Principles themselves, it is important to note that non-compliance with the Aged Care Act 1997 and its related principles could result in administrative, civil, or criminal penalties. These could include fines, sanctions, or other legal actions, depending on the nature and severity of the breach. The exact penalties would be determined by the relevant authorities under the broader legislative framework of the Aged Care Act and other applicable laws.

Legal classification tags

Area of Law
Administrative Law
Social Welfare Law
Instrument
Legislative Instrument
Concepts
Commencement Provisions
Regulatory Standards
Reporting & Disclosure Obligations
Consultation Requirements

Interactions

Authorises

All Versions

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.