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. 2)
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 residential aged care services (approved providers) can be eligible to receive residential care subsidy payments in respect of the care they provide to approved care recipients receiving care in allocated places.
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. Among the Principles made under subsection 96-1(1) are the Residential Care Subsidy Principles 1997 (the Residential Care Subsidy Principles).
The Aged Care Amendment Bill 2011, amongst other matters, repeals redundant legislation and amends the Act to remove references to redundant legislation and grant programs, including such references in paragraphs 43-6(5)(b) to (f) of the definition of capital payment.
The Residential Care Subsidy Amendment Principles 2011 (No. 2) (the Amending Principles) make consequential amendments to insert new section 21.5A which specifies kinds of payment that are capital payments for the purposes of section 43-6 of the Act. The kinds of payment that are specified are the kinds of payment specified in paragraphs 43-6(5)(b) to (f) of the Act, which are to be repealed.
Shifting references to capital payments made under redundant legislation and grant programs from the Act to the Residential Care Subsidy Principles is designed to reduce the complexity of the Act and to facilitate the removal of references to redundant kinds of capital payment when the period of the Commonwealth’s interest in any such payments under funding agreements with approved providers has expired.
Further details on the Amending Principles are attached.
The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
As the amendments in these Amending Principles are machinery and minor in nature, no specific consultation was undertaken in relation to this instrument.
ATTACHMENT
Clause 1 – Name of Principles
Clause 1 states that the name of the Amending Principles is the Residential Care Subsidy Amendment Principles 2011 (No. 2).
Clause 2 – Commencement
Clause 2 states that the Principles commence on the day after they are registered on the Federal Register of Legislative Instruments.
Clause 3 – Amendment of User Rights Principles
Clause 3 states that Schedule 1 amends the Residential Care Subsidy Principles 1997.
Schedule 1 – Amendments
Item 1
This item amends section 21.4 of the Residential Care Subsidy Principles so as to more comprehensively state the purpose of Part 2.
Item 2
This item inserts new section 21.5A which specifies kinds of payment that are capital payments for the purposes of section 43-6 of the Act.