EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Residential Care Subsidy Amendment Principles 2008 (No. 1)
The Aged Care Act 1997 (the Act) provides for the regulation and Commonwealth funding of aged care services.
Subsection 96-1(1) of the Act provides for 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 s 96-1(1) are the Residential Care Subsidy Principles 1997 (the Residential Care Subsidy Principles).
The purpose of the Residential Care Subsidy Amendment Principles 2008 (No. 1)
(the Amending Principles) is to allow residential care subsidies to be paid in conjunction with the Aged Care Funding Instrument (ACFI).
Background
In the 2004 Budget, measures were announced to implement a new funding model for residential aged care with a reduced number of funding categories for personal care. The funding model is also designed to better target funding towards the care of care recipients with challenging behaviours related to dementia and complex nursing and health care needs including palliative care.
The ACFI has been designed to reduce the amount of documentation and record-keeping which aged care staff generate and maintain in order to justify the funding classification for each care recipient.
Purpose and operation
The ACFI reduces the number of questions used to determine funding levels in residential aged care and provides basic subsidy payments for care recipients with complex health care needs, including palliative care, and for care recipients who have mental or behavioural conditions, including dementia. The ACFI classification is based on 12 questions each having four ratings (A, B, C or D).
The Amending Principles will commence on the commencement of Schedule 1 to the Aged Care Amendment (Residential Care) Act 2007.
The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Department of Health and Ageing has worked closely with a Reference Group to advise on the development of the new funding model. Members of this reference group include peak industry bodies, consumer bodies, the Aged Care Standards and Accreditation Agency and the Australian Nursing Federation.
Regulation Impact Statement
The Office of Regulation has advised that no Regulation Impact Statement is required (RIS ID 8112).
Details of the Amending Principles are set out in Attachment A.
ATTACHMENT A
Details of the Residential Care Subsidy Amendment Principles 2008 (No. 1).
Section 1 states that the name of the Amending Principles is the Residential Care Subsidy Amendment Principles 2008 (No. 1).
Section 2 states that the Amending Principles commence on the commencement of Schedule 1 to the Aged Care Amendment (Residential Care) Act 2007.
Section 3 states that Schedule 1 amends the Residential Care Subsidy Principles.
Schedule 1 Amendments
Item 1
This item inserts a new definition into subsection 21.3(1). This is a definition of ACFI classification which is defined as the classification or renewal of a classification of a care recipient under the Act and the Classification Principles 1997 as in force on or after the commencement of Schedule 1 to the Aged Care Amendment (Residential Care) Act 2007. This definition is required as all ACFI classifications will commence from this date.
Item 2
This item inserts a new definition into subsection 21.3(1). This is a definition of RCS classification which is defined as the classification or renewal of a classification of a care recipient under the Act and the Classification Principles 1997 as in force immediately before the commencement of Schedule 1 to the Aged Care Amendment (Residential Care) Act 2007. This definition is required to specify the final date for the creation of any RCS classifications.
Item 3
This item omits the existing Note 2 and definitions from subsection 21.3(3) and inserts a new Note 2 which refers to expressions that are used in the Residential Care Subsidy Principles that are defined in the Dictionary in Schedule 1 to the Act. The expression lowest applicable classification level is a new term inserted.
Item 4
This item substitutes new wording for the entire paragraph 21.11(1)(c) of the Residential Care Subsidy Principles. This has been done to give a more precise reference to whether, on a particular day, a care recipient has exceeded during a financial year, the number of respite care days specified in section 21.18.
Item 5
This item substitutes a new definition of ‘reappraisal period’ in subsection 21.11(3). The new definition is applicable to an ACFI classification as well as a pre-existing RCS classification.
Item 6
This item substitutes the wording of subsection 21.18(1) of the Residential Care Subsidy Amendment Principles. This has been done to include a specific reference to paragraph 44-12(2)(c) of the Act.
Item 7
This item substitutes subsections 21.25(1) and (2) with a new subsection 21.25(1). This subsection now includes a reference to the circumstances where the payroll tax supplement will apply to ACFI classifications. Existing subsections 21.25(1) and (2) have been combined into a more concise single subsection.