EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Residential Care Grant Amendment Principles 2012 (No. 1)
The Aged Care Act 1997 (the Act) provides for the regulation and funding of aged care services. Persons who are approved under the Act to provide aged care services (approved providers) can be eligible to receive residential care grants to contribute towards the cost of the capital works associated with some projects undertaken to establish residential care services or to enhance their capacity to provide residential care.
Section 96-1 of the Act allows the Minister to make Principles providing for various matters required or permitted by a Part or section of the Act. Among the Principles made under section 96-1 are the Residential Care Grant Principles 1997 (the Residential Care Grant Principles).
As part of the Living Longer Living Better reforms, capital grants programs for residential aged care have been combined into a single Rural, Regional and Other Special Needs Building Fund. The purpose of the Residential Care Grant Amendment Principles 2012 (No.1) (the Amending Principles) is to streamline the process for providing assistance to approved providers in the form of capital grants from the combined fund. The Amending Principles clarify the criteria for allocation of residential care grants by removing duplication and overlap of criteria. The Amending Principles also update cross references to provisions in the Act.
Consultation
As the amendments in these Amending Principles are minor or machinery in nature, no specific consultation was undertaken in relation to this instrument.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 14239).
Commencement
This instrument commences on the day after registration.
The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Details of the amendments are listed in the Attachment.
Attachment
Details of the Residential Care Grant Amendment Principles 2012 (No. 1)
Clause 1 Name of Principles
Clause 1 states that the name of the Principles is the Residential Care Grant Amendment Principles 2012 (No. 1).
Clause 2 Commencement
Clause 2 states that the Principles will commence on the day after they are registered.
Clause 3 Amendment of Residential Care Grant Principles 1997
Clause 3 states that Schedule 1 amends the Residential Care Grant Principles 1997.
Schedule 1 Amendments
Item 1 Section 20.3, definition of remote location
This item removes the definition of the term ‘remote location’ as the provision which used this term, section 20.7F, as amended by Item 11 no longer uses this term.
Item 2 Section 20.3, after definition of Act
This item inserts a definition of ‘major city’, which is a term used in section 20.5 as amended by Item 5. The definition refers to the Australian Standard Geographical Classification (ASGC) July 2006 Remoteness Structure prepared by the Australian Bureau of Statistics, which provides an objective way of comparing the remoteness of a location with other locations. In this classification system, remoteness areas are classified as major cities, inner regional, outer regional, remote, very remote or migratory.
Item 3 Section 20.3, boxed note
This item adds the term ‘authority of a State or Territory’ to the boxed note included as part of section 20.3, as this term is used in section 20.7 as amended by Item 7.
Item 4 Section 20.4
This item repeals the boxed note in section 20.4 and substitutes a new boxed note which includes an updated reference to subparagraph 72-2(a)(ii), which was formerly paragraph 72-2(b) of the Act, and substitutes the plural ‘kinds of people’ in place of the singular ‘kind of people’.
Item 5 Subsection 20.5
This item repeals section 20.5, which formerly specified one additional kind of people, and substitutes a new section 20.5 which specifies two additional kinds of people.
The first additional kind of people who are specified are people who live in a location where there is a demonstrated need for additional residential care services. Such a location may be in any remoteness area as given by the Australian Standard Geographical Classification (ASGC) July 2006 Remoteness Structure prepared by the Australian Bureau of Statistics, that is major cities, inner regional, outer regional, remote, very remote or migratory.
The purpose of this amendment is to clarify that people who live anywhere in Australia where the Act applies (see section 4-1 of the Act) may be taken into account for the purposes of subparagraph 72-2(a)(ii) if there is a demonstrated undersupply of residential aged care places in the location where they live.
The second additional kind of people who are specified are people who do not live in a major city. The purpose of this amendment is to clarify that people who live in inner regional, outer regional, remote and very remote areas may be taken into account for the purposes of subparagraph 72-2(a)(ii).
Item 6 Section 20.6
This item repeals the boxed note in section 20.6 and substitutes a new boxed note to update the reference to paragraph 72-2(b), which was formerly paragraph 72-2(c) of the Act.
Item 7 Section 20.7
This item repeals section 20.7 and substitutes a new section 20.7 that sets out the other threshold criteria for the purposes of paragraph 72-2(b) of the Act. The Secretary must be satisfied that the applicant for a grant:
- has demonstrated its on-going financial and organisational viability; and
- has demonstrated that it does not have the capacity to fund all or part of the project without a residential care grant; and
- is not a State or Territory or an authority of a State or Territory; and
- if the applicant is, or has been, a provider of Commonwealth-funded aged care services, has a very good record of, or a demonstrated commitment to improvement in respect of, its conduct as such a provider, compliance with its responsibilities as such a provider, and meeting its obligations arising from receipt of any payment from the Commonwealth for providing aged care.
This item consolidates and clarifies a number of matters that are currently set out in the Residential Care Grant Principles (see current section 20.7 and the first example for current section 20.7D) and the invitation to apply published in accordance with section 71-2 of the Act.
Item 8 Section 20.7B
This item repeals section 20.7B and substitutes a new section 20.7B that sets out the other matters that the Secretary must consider under paragraph 72-3(1)(f) of the Act, which comprise:
- the extent to which the project would meet the needs of care recipients affected by dementia; and
- whether the project would provide high quality accommodation for care recipients; and
- whether the project would provide significantly improved operational efficiency; and
- the adequacy of any arrangements that are proposed for the care of care recipients or other residents while the project is being carried out.
The new list of other matters in section 20.7B includes matters that are currently listed as examples for the purposes of sections 20.7B, 20.7C and 20.7D and avoids restating matters that are already set out or implicit in section 72-3(1) of the Act.
Item 9 Section 20.7C
This item repeals section 20.7C.
Item 10 Section 20.7D
This item repeals section 20.7D
Item 11 Section 20.7F
This item repeals section 20.7F and substitutes a new section 20.7F requiring the Secretary to ensure, as far as practicable, that priority is given to grants for projects that meet specified requirements. The Secretary is not required to allocate a grant to any approved provider.
New subsection 20.7F(3) requires that priority be given, as far as practicable, to a project to meet an urgent need for building, rebuilding, renovation or restoration work to be carried out in order to improve or maintain access to residential care. Such a need might arise, for example, because of fire, flood, earthquake or any other unforseen circumstance, which are specific examples currently mentioned in section 20.7F.
New subsection 20.7F clarifies that an urgent need might also arise because of the increased frailty of care recipients who are being cared for by the residential care service, or who will be provided with care, or because of the increased prevalence of dementia amongst care recipients or prospective care recipients.
New subsection 20.7F also requires that priority be given, as far as practicable, to the project that offers the Commonwealth the best value for money compared with other projects for which applications for residential care grants have been made.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Residential Care Grant Amendment Principles 2012 (No. 1)
This Legislative Instrument 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.
Overview of the Legislative Instrument
The purpose of the Residential Care Grant Amendment Principles 2012 (No. 1) is to streamline the process for providing assistance to approved providers in the form of capital grants from the Rural, Regional and Other Special Needs Building Fund. The Amending Principles clarify the criteria for allocation of residential care grants by removing duplication and overlap of criteria.
Human Rights Implications
This Legislative Instrument engages the right to health in that it facilitates the allocation of capital grants for the provision of residential aged care services to meet the needs of people who might otherwise find it difficult to access these services because of their special needs or the location in which they live. This legislative instrument does not limit the rights of people who do not fall within these target groups to access residential aged care services funded by the Australian Government.
Conclusion
This Legislative Instrument is compatible with human rights because it advances the protection of the right to health.
Mark Butler
Minister for Mental Health and Ageing