EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Residential Care Subsidy Amendment Principles 2005 (No. 4) Amendment Instrument 2005
Subsection 96-1(1) of the Aged Care Act 1997 (“the Act”) allows the Minister to make Principles providing for matters required or permitted by a Part or section of the Act to be provided, or necessary or convenient to be provided, in order to carry out or give effect to that Part or section. Subsection 96-1(2) of the Act provides that Principles are disallowable instruments for the purposes of section 46A of the Acts Interpretation Act 1901.
The Residential Care Subsidy Principles 1997 are one of several sets of Principles which have been made under the Act. The Residential Care Subsidy Principles deal with the eligibility for the subsidy, how it is paid and what amount is paid.
On 23 June 2005, the Minister for Ageing made two sets of amendments to the Residential Care Subsidy Principles:
- The Residential Care Subsidy Amendment Principles 2005 (No. 4), FRLI number F2005L01837, which clarify the operation of the financial reporting requirement for the conditional adjustment payment.
- The Residential Care Subsidy Amendment Principles 2005 (No. 4), FRLI number F2005L01721 which change the arrangements for the payment of viability supplement.
The Amendment Instrument will remove any potential for confusion between these two sets of amendments by renumbering the Residential Care Subsidy Amendment Principles 2005 (No. 4), FRLI number F2005L01721. In future the amendments will be referred to as the Residential Care Subsidy Amendment Principles 2005 (No. 5).
This is a technical amendment which seeks to avoid difficulties in the future with referring to, amending or revoking these amendments. There are no changes to the content of the amendments. As a result, no consultation has been undertaken with industry.
The Office of Regulation Review has advised that no Regulation Impact Statement is required for the Amendment Instrument. The Amendment Instrument is a “legislative instrument” for the purposes of the Legislative Instruments Act 2003.
Details of the Amendment Instrument are set out in the Attachment.
ATTACHMENT
NOTES ON CLAUSES
Clauses 1 and 2 set out the title of the Amendment Instrument and its commencement
date (the day after it is registered on the Federal Register of Legislative Instruments).
Clause 3 amends the Residential Care Subsidy Amendment Principles 2005 (No. 4), FRLI number F2005L01721 according to the Schedule.
Item 1 in Schedule 1 substitutes a new name for these Principles. In future, they will be the Residential Care Subsidy Amendment Principles 2005 (No. 5).
Overview
The Aged Care Act 1997, enacted by the Australian Parliament, provides the legislative framework for aged care services in Australia. To refine and update the operation of the Residential Care Subsidy within this framework, the Residential Care Subsidy Amendment Principles 2005 (No. 4) Amendment Instrument 2005 was introduced. This amendment was intended to address potential confusion arising from the existence of two similarly named sets of principles, thus ensuring clarity and consistency in the application of the subsidy. The enacting body for this amendment was the Minister for Ageing, who utilised the authority granted under section 96-1 of the Aged Care Act 1997 to make the necessary changes. The primary policy objective of this amendment was to streamline the administrative processes and enhance the efficiency of the subsidy scheme without altering the substantive content of the amendments themselves.
Scope and Application
The Residential Care Subsidy Amendment Principles 2005 (No. 4) Amendment Instrument 2005 pertains to the Aged Care Act 1997, focusing on the clarification and adjustment of the Residential Care Subsidy Principles. This legislation applies to entities and individuals who are involved in the provision of aged care services and the administration of the residential care subsidy within Australia. It specifically addresses the eligibility criteria, payment mechanisms, and amounts for the subsidy. The jurisdictional reach of the Act is Commonwealth-wide, thereby impacting all aged care facilities and subsidy recipients across Australia. The Amendment Instrument does not introduce new exclusions, exemptions, or thresholds but rather serves to rectify an administrative oversight by renumbering the existing Residential Care Subsidy Amendment Principles 2005 (No. 4), FRLI number F2005L01721 to avoid future confusion. This change ensures that the subsequent amendments are clearly identified as the Residential Care Subsidy Amendment Principles 2005 (No. 5). The Amendment Instrument is subject to disallowance under the Acts Interpretation Act 1901 and is considered a legislative instrument under the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Residential Care Subsidy Amendment Principles 2005 (No. 4) Amendment Instrument 2005 (F2005L03159) focus on technical adjustments to the Residential Care Subsidy Principles 1997. Specifically, Clause 3 of the Amendment Instrument renames the Residential Care Subsidy Amendment Principles 2005 (No. 4), FRLI number F2005L01721, to clarify and avoid future confusion. These amendments are purely re-denominational and do not alter the substantive content of the original principles (Sections 96-1(1) and 96-1(2) of the Aged Care Act 1997).
The Act imposes specific obligations on entities governed by the Residential Care Subsidy Principles, ensuring clarity and consistency in the application of financial reporting requirements and payment arrangements. These entities must adhere to the revised naming convention to correctly reference and implement the updated principles. The Amendment Instrument ensures that any future amendments or revocations can be accurately tracked and applied.
There are no new offences or penalties introduced by this Amendment Instrument, as it is intended solely to avoid confusion and streamline the identification of the principles. However, any failure to correctly apply the updated principles, once in effect, could result in administrative errors or non-compliance with the Aged Care Act 1997. The penalties for non-compliance would be as stipulated in the main Act, which could include fines or other administrative sanctions.
This technical amendment is designed to prevent potential difficulties in the future with referring to, amending, or revoking the principles. It ensures that the principles are correctly identified and implemented, thereby maintaining the integrity of the financial reporting and payment processes within the aged care sector. No consultation with industry was deemed necessary as the changes are purely administrative and do not affect the substantive content of the principles.