Residential Care Subsidy Amendment Principles 2011 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2011L00820 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Mental Health and Ageing

 

Aged Care Act 1997

 

Residential Care Subsidy Amendment Principles 2011 (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 subsidy payments in respect of the care they provide to approved care recipients. 

 

Subsection 96-1(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. 

 

One set of Principles made under the Act is the Residential Care Subsidy Principles 1997 (the Residential Care Subsidy Principles).  

 

The purpose of the Residential Care Subsidy Amendment Principles 2011 (No. 1) (the Amending Principles) is detailed below. 

 

Residential Care Subsidy Amendment Principles 2011 (No. 1)

 

The Accreditation Grant Principles 1999 describe the process for accreditation of providers of residential care services by the Aged Care Standards and Accreditation Agency Ltd (the accreditation body).

 

A recent review of the accreditation process found that amendments to the Accreditation Grant Principles 1999 would be desirable in order to:

  • remove or amend outdated provisions;
  • streamline the accreditation process;
  • make the Principles more logical, consistent and better able to be understood;
  • enhance consumer engagement; and
  • provide greater clarity and consistency of administrative processes.

 

Following extensive consultation regarding the accreditation process, new Principles were developed to replace the Accreditation Grant Principles 1999.  The new Principles, the Accreditation Grant Principles 2011, are intended to take effect from 20 May 2011.

 

The purpose of the Amending Principles (the Residential Care Subsidy Amendment Principles 2011 (No. 1)) is to make minor consequential amendments to the Residential Care Subsidy Principles to replace existing references to the Accreditation Grant Principles 1999 with references to the Accreditation Grant Principles 2011.

 

Specifically, it is proposed that:

  • the existing definition of accreditation application (in subsection 21.3B(1)) be replaced with a new definition which defines an accreditation application as an application to the accreditation body under subsection 2.9(2) of the Accreditation Grant Principles 2011, by the approved provider of a residential care service for re-accreditation of the service; and
  • subsection 21.3B(5) be amended so as to replace an outdated reference to section 2.5 of the Accreditation Grant Principles 1999 with the appropriate new reference to subsection 2.10(1) of the Accreditation Grant Principles 2011.

 

Both of these changes are consequential only.  

 

Consultation

In March 2008 the Government announced a comprehensive review of the accreditation process and accreditation standards.

 

In relation to the accreditation process, an issues paper was developed to facilitate discussion about the Accreditation Grant Principles 1999.  This issues paper formed the basis of a public consultation process to provide all stakeholders with an opportunity to comment on the existing accreditation process and suggest changes for the future. In response,
147 submissions were received from a range of aged care stakeholders including peak industry and consumer groups, trade unions, approved providers, aged care services, and from individual practitioners, staff, residents and relatives.

 

In 2009-10, the findings of the review process were considered and further consultation occurred.  A paper on various options for enhancing the accreditation process was distributed to the Ageing Consultative Committee (ACC) in March 2010.  The ACC includes industry and consumer representatives.  Following consideration of comments raised by the ACC, a further consultation paper (outlining the proposed changes to the Accreditation Principles) was developed and provided to the ACC in July 2010. As a result of valuable feedback, some further refinements were made to the proposals and presented to the ACC in November 2010 and again in March 2011.

 

The changes outlined in the Accreditation Grant Principles 2011 are consistent with the outcomes of the review, consultation with the sector and consumer groups, and supported by the ACC.

 

As the amendments in these Amending Principles are minor consequential changes in line with the Accreditation Grant Principles 2011, no specific consultation was undertaken in relation to this instrument.

 

The Amending Principles commence on 20 May 2011, in line with the commencement of the Accreditation Grant Principles 2011.

 

The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Overview

The Residential Care Subsidy Amendment Principles 2011 (No. 1) were enacted to address gaps in the Aged Care Act 1997 by making minor consequential amendments to the Residential Care Subsidy Principles. This Act, introduced by the Minister for Mental Health and Ageing, aims to ensure the principles governing the subsidy payments for residential care align with the new Accreditation Grant Principles 2011. These new principles were developed following a comprehensive review of the accreditation process for aged care services, which identified the need to remove outdated provisions, streamline the accreditation process, enhance consumer engagement, and provide greater clarity and consistency. The new Accreditation Grant Principles 2011 were developed through extensive consultation with industry and consumer groups, resulting in changes that were endorsed by the Ageing Consultative Committee. The Residential Care Subsidy Amendment Principles 2011 (No. 1) replace references to the old accreditation principles with references to the new ones, ensuring that the legislation remains current and effective in regulating and funding aged care services.

Scope and Application

The Residential Care Subsidy Amendment Principles 2011 (No. 1) applies to entities that are approved providers of residential care services under the Aged Care Act 1997. These approved providers can be eligible to receive subsidy payments in respect of the care they provide to approved care recipients. The Act regulates and funds aged care services across the Commonwealth of Australia, ensuring that care provided meets certain standards and is eligible for government subsidies. The Amending Principles make minor consequential amendments to the Residential Care Subsidy Principles to reflect changes made to the Accreditation Grant Principles 1999, which describe the accreditation process for providers of residential care services. The changes include replacing references to the Accreditation Grant Principles 1999 with references to the Accreditation Grant Principles 2011. The amendments are designed to streamline the accreditation process, enhance consumer engagement, and provide greater clarity and consistency of administrative processes. The Amending Principles do not introduce any new substantive changes but are necessary to ensure the continued operation of the subsidy scheme in light of the updated accreditation principles.

Key Provisions

The Residential Care Subsidy Amendment Principles 2011 (No. 1) (the Amending Principles) are designed to make minor consequential amendments to the Residential Care Subsidy Principles, specifically to update references from the Accreditation Grant Principles 1999 to the Accreditation Grant Principles 2011. Section 21.3B(1) redefines an accreditation application as an application by an approved provider for re-accreditation of a residential care service under the new Accreditation Grant Principles 2011, and section 21.3B(5) replaces an outdated reference to the Accreditation Grant Principles 1999 with a reference to the new principles. These amendments ensure that the Residential Care Subsidy Principles remain consistent with the updated accreditation standards. Under the Aged Care Act 1997, approved providers of residential care services must comply with the updated Accreditation Grant Principles 2011, as referenced in the Amending Principles. This includes submitting applications for re-accreditation according to the new definitions and processes outlined in the updated principles. These obligations are designed to ensure that providers maintain high standards of care and meet the updated regulatory requirements. Compliance with these requirements is critical to the ongoing eligibility for subsidy payments under the Act. The Act does not explicitly outline specific offences or penalties for non-compliance with the updated Accreditation Grant Principles 2011 or the Amending Principles themselves. However, failure to comply with the accreditation requirements can result in significant consequences for approved providers. These may include the potential loss of eligibility for subsidy payments, which can critically impact the financial viability of the provider. Additionally, ongoing non-compliance could lead to further regulatory action, including the possibility of de-accreditation, which would prevent the provider from legally offering residential care services. These potential outcomes underscore the importance of adhering to the updated principles and accreditation processes.

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