Residential Care Subsidy Amendment Principles 2005 (No. 5)

Administered by Department of Health, Disability and Ageing

Legislation au F2005L01721 Not in force Legislative Instrument

Legislation content

Residential Care Subsidy Amendment Principles 2005 (No. 4)

as amended

made under section 96-1 (1) of the

Aged Care Act 1997

This compilation was prepared on 25 October 2005
taking into account amendments up to Residential Care Subsidy Amendment Principles 2005 (No. 4) Amendment Instrument 2005

Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra

Contents

 1 Name of Principles [see Note 1]

 2 Commencement 

 3 Amendment of Residential Care Subsidy Principles 1997

Notes   

 

 

 

 

1 Name of Principles [see Note 1]

  These Principles are the Residential Care Subsidy Amendment Principles 2005 (No. 5).

2 Commencement

  These Principles are taken to have commenced on 1 January 2005.

3 Amendment of Residential Care Subsidy Principles 1997

  Schedule 1 amends the Residential Care Subsidy Principles 1997.

Schedule 1 Amendment

(section 3)

 

[1] Part 14

substitute

Part 14 Viability supplement

21.33 Purpose of Part (Act, s 44-29)

  This Part specifies the other matters to which the Secretary must have regard in deciding whether to make a determination under subsection 4429 (2) of the Act in respect of a residential care service.

21.34 Definitions for Part 14

  In this Part:

Amount Determination, for a day, means the determination under subsection 44-29 (8) of the Act that is in force on that day.

1997 scheme service means a residential care service that:

 (a) meets the requirements of subsection 21.35A (1); and

 (b) does not meet the requirements of subsection 21.35C (3).

2001 scheme service means a residential care service that:

 (a) meets the requirements of subsection 21.35B (1) or (3); and

 (b) does not meet the requirements of subsection 21.35C (4).

2005 scheme service means a residential care service that meets the requirements of subsection 21.35C (1), (3) or (4).

21.35 Other matters to which the Secretary must have regard

  For subsection 44-29 (2) of the Act, the Secretary must have regard to whether a residential care service is a 1997 scheme service, a 2001 scheme service or a 2005 scheme service.

21.35A 1997 scheme services

 (1) A residential care service meets the requirements of this subsection if:

 (a) the service was in operation on 31 December 2004, and, on that date, the point score of the service would have been at least 60 points, under the scoring system set out in the following table; and

 (b) on 1 January 2005, the point score of the service is either:

 (i) less than 50 points, under the scoring system set out in the table in subsection 21.35C (1); or

 (ii) if the amount of viability supplement payable under the Amount Determination for a day in respect of a care recipient to whom care is provided through the service as a 2005 scheme service is less than the amount of viability supplement payable in respect of the care recipient for the day if the service were treated as a 1997 scheme service — at least 50 points, under the scoring system set out in the table in subsection 21.35C (1).

 

Item

Criterion

Points

1

Location:

 

 

 (a) remote zone

40

 

 (b) other rural area

30

 

 (c) small rural centre

20

 

 (d) large rural centre

10

2

Beds:

 

 

 (a) less than 30

20

 

 (b) less than 16

30

3

Service not co-located with another service and unable to co-locate

20

4

Concessional or assisted residents:

 

 

 (a) over 70%

20

 

 (b) 50% to 70%

10

5

Caters largely for special groups, including Aboriginal and Torres Strait Islander groups

10

 (2) For subsection (1):

 (a) a location of a particular kind is a statistical local area of that kind defined in ‘Rural, Remote and Metropolitan Area Classification’, 1991 Census Edition, published by the Australian Government Publishing Service, November 1994; and

 (b) a service is taken to be unable to co-locate with another service if it is:

 (i) not on the same site as, or on an adjoining site to, another residential care or multi-purpose service; or

 (ii) on the same site as, or an adjoining site to another residential care or multi-purpose service, but the total of the residential places and non-acute beds on the same or adjacent sites is less than 45; or

 (iii) more than 25 kilometres from the nearest residential care service; or

 (iv) not more than 25 kilometres from the nearest residential care service, but the total number of places in both services is:

 (A) for a service in a remote zone — less than 30 beds; or

 (B) for a service not in a remote zone — less than 16 beds; and

 (c) multi-purpose service has the meaning given by section 15.3 of the Flexible Care Subsidy Principles 1997; and

 (d) points may be scored under only 1 paragraph in an item that has paragraphs.

21.35B 2001 scheme services

 (1) A residential care service meets the requirements of this subsection if:

 (a) the service was in operation on 31 December 2004, and, on that date, the point score of the service would have been at least 40 points, under the scoring system set out in the following table; and

 (b) on 1 January 2005, the point score of the service is either:

 (i) less than 50 points, under the scoring system set out in the table in subsection 21.35C (1); or

 (ii) if the amount of viability supplement payable under the Amount Determination for a day in respect of a care recipient to whom care is provided through the service as a 2005 scheme service is less than the amount of viability supplement payable in respect of the care recipient for the day if the service were treated as a 2001 scheme service — at least 50 points, under the scoring system set out in the table in subsection 21.35C (1).

 

Item

Criterion

Points

1

Location:

 

 

 (a) very remote location

60

 

 (b) remote location

50

 

 (c) moderately accessible location

40

 

 (d) accessible location

30

 

 (e) highly accessible location

0

2

Places:

 

 

 (a) less than 20

30

 

 (b) more than 19 but less than 30

20

 

 (c) more than 29 but less than 45

10

3

More than 50% of care recipients are people with special needs (other than people who are people with special needs only because they live in rural or remote areas or they are financially or socially disadvantaged)

10

 (2) In this section:

accessible location means a location that has an ARIA score of more than 1.84, but not more than 3.51.

ARIA means the ‘Accessibility/Remoteness Index of Australia (ARIA)’, Occasional Papers Series No. 6, prepared by the Department of Health and Aged Care and the National Centre for Social Applications of Geographic Information Systems, University of Adelaide, and published in March 1999 by the Department of Health and Aged Care.

ARIA score, in relation to a location, means the score given to that location under the document titled ‘Viability Funding — ARIA scores for locations as at 30 July 1999’, published by the Department of Health and Aged Care.

highly accessible location means a location that has an ARIA score of not more than 1.84.

moderately accessible location means a location that has an ARIA score of more than 3.51, but not more than 5.8.

remote location means a location that has an ARIA score of more than 5.8, but not more than 9.08.

very remote location means a location that has an ARIA score of more than 9.08, but not more than 12.

 (3) A residential care service meets the requirements of this subsection if:

 (a) the service commences operating on or after 1 January 2005 and before 1 July 2005; and

 (b) on the day that the service commences operating, the point score of the service:

 (i) is at least 40 points, under the scoring system set out in subsection (1); and

 (ii) is either:

 (A) less than 50 points, under the scoring system set out in the table in subsection 21.35C (1); or

 (B) if the amount of viability supplement payable under the Amount Determination for that day in respect of a care recipient to whom care is provided through the service as a 2005 scheme service is less than the amount of viability supplement payable in respect of the care recipient for that day if the service were treated as a 2001 scheme service — at least 50 points, under the scoring system set out in the table in subsection 21.35C (1).

21.35C 2005 scheme services

 (1) A residential care service meets the requirements of this subsection if, on or after 1 January 2005, the service:

 (a) is not a 1997 scheme service or a 2001 scheme service; and

 (b) scores at least 50 points, under the scoring system set out in the following table.

 

Item

Criterion

Points

1

Location:

 

 

 (a) very remote location

65

 

 (b) remote location

55

 

 (c) moderately accessible location

40

 

 (d) accessible location

30

 

 (e) highly accessible location

0

2

Places:

 

 

 (a) less than 20

30

 

 (b) more than 19 but less than 25

25

 

 (c) more than 24 but less than 30

20

 

 (d) more than 29 but less than 35

15

 

 (e) more than 34 but less than 40

10

 

 (f) more than 39 but less than 45

5

3

More than 50% of care recipients are people with special needs (other than people who are people with special needs only because they live in rural or remote areas or they are financially or socially disadvantaged)

5

 (2) In this section:

accessible location has the meaning given by subsection 21.35B (2).

ARIA has the meaning given by subsection 21.35B (2).

ARIA score has the meaning given by subsection 21.35B (2).

highly accessible location has the meaning given by subsection 21.35B (2).

moderately accessible location has the meaning given by subsection 21.35B (2).

remote location has the meaning given by subsection 21.35B (2).

very remote location has the meaning given by subsection 21.35B (2).

 (3) A residential care service meets the requirements of this subsection if the service meets the requirements of subsection 21.35A (1) (that is, for a 1997 scheme service) and, on at least 1 day on or after 1 January 2005:

 (a) the service scores at least 50 points, under the scoring system set out in the table in subsection (1); and

 (b) the amount of viability supplement payable under the Amount Determination for a day in respect of a care recipient to whom care is provided through the service as a 2005 scheme service is the same as or greater than the amount of viability supplement payable in respect of the care recipient for the day if the service were treated as a 1997 scheme service.

 (4) A residential care service meets the requirements of this subsection if the service meets the requirements of subsection 21.35B (1) or (3) (that is, for a 2001 scheme service) and, on at least 1 day on or after 1 January 2005:

 (a) the service scores at least 50 points, under the scoring system set out in the table in subsection (1); and

 (b) the amount of viability supplement payable under the Amount Determination for a day in respect of a care recipient to whom care is provided through the service as a 2005 scheme service is the same as or greater than the amount of viability supplement payable in respect of the care recipient for the day if the service were treated as a 2001 scheme service.

 

Notes to the Residential Care Subsidy Amendment Principles 2005 (No. 4)

Note 1

The Residential Care Subsidy Amendment Principles 2005 (No. 4) (in force under section 96-1 (1) of the Aged Care Act 1997) as shown in this compilation is amended as indicated in the Tables below.

Under the Legislative Instruments Act 2003, which came into force on 1 January 2005, it is a requirement for all non-exempt legislative instruments to be registered on the Federal Register of Legislative Instruments.

Table of Instruments

Title

Date of notification
in Gazette or FRLI registration

Date of
commencement

Application, saving or
transitional provisions

Residential Care Subsidy Amendment Principles 2005 (No. 4)

28 June 2005
(see F2005L01721)

1 Jan 2005

 

Residential Care Subsidy Amendment Principles 2005 (No. 4) Amendment Instrument 2005

24 Oct 2005
(see F2005L03159)

25 Oct 2005

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted

Provision affected

How affected

R. 1.................

rs. Am. Inst., 2005

 

 

Overview

The Residential Care Subsidy Amendment Principles 2005 (No. 4), enacted under section 96-1(1) of the Aged Care Act 1997, was introduced to amend the existing residential care subsidy principles, ensuring they address the evolving needs of residential care services. This legislative instrument was prepared by the Office of Legislative Drafting and Publishing, Attorney-General’s Department, and took effect on 1 January 2005. The primary policy objective of these principles is to provide a structured approach for the Secretary to consider when determining the viability of residential care services, ensuring that the services are appropriately supported based on their specific circumstances and location. The principles aim to balance the needs of care recipients with the operational challenges faced by residential care providers, particularly those in remote or rural areas.

Scope and Application

The Residential Care Subsidy Amendment Principles 2005 (No. 4) amends the Residential Care Subsidy Principles 1997, which are made under section 96-1 (1) of the Aged Care Act 1997. These Principles are designed to specify additional factors the Secretary must consider when determining if a residential care service qualifies for a viability supplement. These Principles apply to residential care services that are in operation on or after 1 January 2005, with the aim of ensuring that these services continue to meet specific criteria relating to location, the number of beds, the proportion of concessional or assisted residents, and the care provided to special groups, including Aboriginal and Torres Strait Islander groups. The criteria include a scoring system based on the remoteness of the location and the number of beds, among other factors. The Principles further distinguish between services that were operational on 31 December 2004 (1997 scheme services), those that commence between 1 January 2005 and 30 June 2005 (2001 scheme services), and those that commence on or after 1 July 2005 (2005 scheme services). The application of these Principles can be extended or modified through subordinate instruments, although no specific exclusions or exemptions are outlined in this particular legislative instrument.

Key Provisions

The Residential Care Subsidy Amendment Principles 2005 (No. 4) amend the Residential Care Subsidy Principles 1997, which are a legislative instrument made under the Aged Care Act 1997. These Principles came into effect on 1 January 2005, and they modify the criteria for determining the viability supplement for residential care services. The viability supplement is a financial support provided to residential care services to assist with the costs of providing care, particularly in remote or rural areas. The Act specifies that the Secretary must consider whether a residential care service is a 1997 scheme service, a 2001 scheme service, or a 2005 scheme service when deciding whether to make a determination under subsection 44-29(2) of the Aged Care Act 1997. These services are defined based on their point scores, which are calculated using a scoring system that takes into account factors such as the location, size, and the proportion of concessional or assisted residents. For example, a 1997 scheme service is one that was in operation on 31 December 2004 and meets specific point score criteria. Similarly, 2001 and 2005 scheme services are defined by their point scores and the conditions under which they were in operation. The obligations imposed by these Principles on residential care services include ensuring they meet the criteria for their respective scheme services as defined by their point scores. Service providers must accurately calculate and report their scores based on the criteria outlined in the Act. Additionally, they must comply with the conditions for receiving the viability supplement, which may include providing care in remote or rural areas and catering to special groups such as Aboriginal and Torres Strait Islander peoples. Failure to comply with the requirements of these Principles may result in civil or criminal penalties. While the specific penalties are not detailed in the excerpt provided, it is common for breaches of legislative instruments to attract fines or other sanctions under the relevant Acts or regulations. The severity of the penalties would depend on the nature and extent of the non-compliance. For example, knowingly providing false information to obtain a viability supplement could result in criminal charges and substantial fines.

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