EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Residential Care Subsidy Amendment Principles 2008 (No. 3)
The Minister for Ageing makes this amendment to the Residential Care Subsidy Principles 1997 under subsection 96-1(1) of the Aged Care Act 1997 (the Act). The name of this amendment is the Residential Care Subsidy Amendment Principles 2008 (No. 3).
Background
The Conditional Adjustment Payment (CAP) is an additional primary supplement under the Aged Care Act 1997, payable to Approved Providers of residential aged care. When the CAP was introduced in the 2004-05 Budget, there was an intention to review the CAP program and funding during the 2007-08 financial year. As a consequence the Residential Care Subsidy Principles 1997 included an application period clause for the CAP to go to 30 June 2008.
The 2008-09 Budget announced a 1.75 per cent increase in the level of the CAP payment for the 2008‑09 financial year, and a review to be completed by the end of October 2008. The CAP review will examine the extent to which CAP has been effective in achieving financial, management and governance improvements. It will also examine the need for and level of any further medium term financial assistance to encourage providers to become more efficient through improved management practices.
To enable CAP to be paid in 2008-09 and beyond, the amending instrument removes the reference to 1 July 2008 as the end date of operation.
Consultation
This amendment provides for a continuation of the CAP which was being widely asked for in the Budget context. It benefits the Aged Care sector and has no adverse impact. As a consequence, no separate consultation was undertaken on the amendment.
NOTES ON CLAUSES
Section 1 states that the name of the Instrument is the Residential Care Subsidy Amendment Principles 2008 (No. 3).
Section 2 states that the Instrument is to commence on 1 July 2008.
Section 3 states that the Instrument amends the Residential Care Subsidy Principles 1997 in accordance with the Schedule.
Schedule 1 Amendments
Item 1
This item omits ‘This Division applies in respect of a payment period that begins before
1 July 2008.’ from subsection 26.26A of the Residential Care Subsidy Principles 1997 and inserts ‘This Division applies in respect of a payment period that begins on or after 1 April 2005.’ into subsection 26.26A of the Residential Care Subsidy Principles 1997. This enables the CAP to be paid in respect of a payment period that begins on a date on or after 1 July 2008.