Residential Care Subsidy Amendment Principles 2012 (No. 2)

Administered by Department of Health, Disability and Ageing

Legislation au F2012L01428 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Ageing

 

Aged Care Act 1997

 

Residential Care Subsidy Amendment Principles 2012 (No. 2)

 

The Aged Care Act 1997 (the Act) provides for the 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. 

 

Section 96-1 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 section 96-1 are the Residential Care Subsidy Principles 1997 (the Residential Care Subsidy Principles).

 

The Residential Care Subsidy Amendment Principles 2011 (No. 3) (the previous Amending Principles) modified for the purposes of section 44-29 of the Act the method for assessing whether the viability supplement should be paid in respect of residents at a residential care service.  These amendments allowed for additional financial support for residential care services which specialise in providing low care in rural and remote areas, or which care for aged care residents with complex behaviours who have a history of homelessness and/or are from Aboriginal and Torres Strait Islander communities.

 

The purpose of the Residential Care Subsidy Amendment Principles 2012 (No.2) (the Amending Principles) is to clarify the provisions relating to the timeframes for approved providers of eligible aged care services to notify the Secretary of appraisal outcomes, to extend the period for submission of notifications attracting back-dated payments and to allow for the late submission of notifications.  The Amending Principles also correct some minor drafting errors.  

 

The Amending Principles are taken to have commenced on 1 July 2011.

 

The retrospective commencement of the Amending Principles does not contravene subsection 12(2) of the Legislative Instruments Act 2003 because it increases the opportunities for approved providers to notify the Secretary of the outcome of appraisals that could make them eligible to receive additional funding for existing residents.  Retrospective application of these provisions does not impose any disadvantage on any person other than the Commonwealth. 

 

Consultation

 

As the amendments in the Amending Principles are minor changes, no specific consultation was undertaken in relation to this instrument.

 

Regulation impact statement

 

The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 12686).

 

 

 

Further details

 

Further details on the Amending Principles are attached.

 

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

 


 

ATTACHMENT

 

Details of the Residential Care Subsidy Amendment Principles 2012 (No. 2)
 

Clause 1 – Name of Principles

Clause 1 states that the name of the Amending Principles is the Residential Care Subsidy Amendment Principles 2012 (No. 2).
 

Clause 2 - Commencement

Clause 2 states that the Principles are taken to have commenced on 1 July 2011.
 

Clause 3 – Amendment of Residential Care Subsidy Principles 1997

Clause 3 states that Schedule 1 amends the Residential Care Subsidy Principles.
 

Schedule 1 Amendments

Item 1 Section 21.34

Item 1 amends section 21.34 to correct cross-references.

Item 2 After subsection 21.35B (3)

Item 2 inserts the heading for section 21.35C which was removed by the Residential Care Subsidy Amendment Principles 2011 (No. 3) due to a drafting error.
 

Item 3 Schedule 2

Item 3 repeals Schedule 2 to the Residential Care Subsidy Principles and substitutes a new Schedule 2.  The differences between the previous Schedule 2 and the new Schedule 2 are set out below.

Under the heading for Schedule 2, ‘Appraisal procedures for targeting care for homeless people or people from Aboriginal and Torres Strait Islander communities’, the reference to ‘paragraph 21.35C (4) has been changed to ‘subsection 21.35C (4)’ to correct a drafting error.

1.1 Appraisal procedures

Minor adjustments have been made to the wording of sub-item 1.1 (2) which are stylistic changes to improve clarity and do not change the intent of the original wording.

1.2 Time for completion of appraisal procedures

Sub-item 1.2 (1) sets out the general rule relating to the time for completion of appraisal procedures and notification of the outcome to the Secretary.  Generally, an approved provider has 2 months after the day a resident enters the service to complete the appraisal procedures and notify the Secretary of the outcome of the appraisal, but should not submit the notification until at least 28 days has elapsed since the day the resident entered the service.  This corresponds to the timeframe for completing and submitting an initial appraisal of the resident’s care needs using the Aged Care Funding Instrument (see paragraphs 25-3(2)(b) and 26-1(b) of the Act).

Sub-item 1.2 (2) allows an approved provider to submit the outcome of an appraisal earlier than would be the case under the general rule if a care recipient dies or leaves the service before the end of 28 days after the care recipient’s entry day.  An approved provider is not required, in the circumstances specified in this sub-item, to submit the outcome of the appraisal earlier than would be the case under the general rule, but has the option to do so.

Sub-item 1.2 (3) is a transitional provision extending the period for notifying the Secretary of the outcome of appraisals for existing care recipients to 1 September 2012.  If a care recipient’s entry day is less than 2 months prior to 1 July 2012, the general rule in sub-item 1.2 (1) applies, which ensures that the provider has a full 2 months to notify the Secretary of the outcome of the appraisal.

Sub-item 1.2 (4) specifies that, if an approved provider notifies the Secretary of the outcome of an appraisal before the end of the period specified in either the general rule set out in sub-item 1.2 (1) or the transitional rule set out in sub-item 1.2 (3), any additional points that may be added under subsection 21.35C (4) for the purposes of Step 3 of the viability supplement points calculator in subsection 21.35C (1) of the Principles as a result of the outcome of the appraisal take effect on either 1 July 2011 or the care recipient’s entry day, whichever is the later day.  The effect of this sub-item is that any additional amount of viability supplement that is payable as a result of the notification is payable from either 1 July 2011 or from the care recipient’s entry day, whichever is the later day.

The retrospective operation of the amendments made by the Amending Principles allows for the back-dating of payments to 1 July 2011 in respect of eligible care recipients who were receiving care at that time, or to a resident’s entry day is that day is later than 1 July 2011, if the approved provider notifies the Secretary of the outcome of the appraisal before 1 July 2012.

Sub-item 1.2 (5) allows for the late submission of notifications of the outcome of appraisals.  If the notification of the outcome of an appraisal is received by the Secretary after the relevant notification period, any additional amount of viability supplement that is payable as a result of the notification is payable from the day the notification is received by the Secretary.   

1.3 Appraisal Tools

 

Minor amendments (the deletion of two extraneous words) have been made to the Appraisal Tools to improve clarity.

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Residential Care Subsidy Amendment Principles 2012 (No.2)

This Legislative Instrument is compatible with the human rights and freedoms recognised
or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

These amendments clarify the timeframes for claiming additional financial support for residential care services which specialise in providing low care in rural and remote areas, or which care for aged care residents with complex behaviours who have a history of homelessness and/or or are from Aboriginal and Torres Strait Islander communities.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The Residential Care Subsidy Amendment Principles 2012 (No. 2) were introduced to amend the Aged Care Act 1997, specifically addressing the residential care subsidy for approved providers of aged care services. Enacted by the Minister for Ageing, these principles aim to clarify and extend the timeframes for approved providers to notify the Secretary of appraisal outcomes, thus enabling them to claim additional financial support for their services. Additionally, these amendments facilitate the submission of late notifications and correct minor drafting errors within the Residential Care Subsidy Principles 1997. This legislative instrument seeks to ensure that approved providers have adequate opportunities to claim additional funding for existing residents, particularly those in rural and remote areas or with complex care needs, without imposing any disadvantages on the Commonwealth or other persons. The retrospective commencement of these principles does not contravene the Legislative Instruments Act 2003 as it primarily benefits the approved providers and eligible care recipients.

Scope and Application

The Residential Care Subsidy Amendment Principles 2012 (No. 2) pertains to the Aged Care Act 1997 and is designed to amend the Residential Care Subsidy Principles 1997 by introducing specific changes that aim to streamline the process for approved providers to claim additional financial support for particular aged care services. This legislation applies to approved providers who offer residential aged care services and to care recipients who may qualify for the viability supplement due to specific criteria such as residing in rural or remote areas, or having complex behaviours linked to a history of homelessness or being from Aboriginal and Torres Strait Islander communities. The amendments clarify the timelines for providers to notify the Secretary of appraisal outcomes and extend the period for submission of notifications that may attract backdated payments, while also allowing for the late submission of such notifications. The Amending Principles clarify the existing provisions, correct minor drafting errors, and are taken to have commenced on 1 July 2011. The retrospective application of these amendments does not disadvantage any person other than the Commonwealth and is compliant with human rights as it does not engage any applicable rights or freedoms.

Key Provisions

The main operative sections of the Residential Care Subsidy Amendment Principles 2012 (No. 2) (the Amending Principles) clarify the timeframes for approved providers of eligible aged care services to notify the Secretary of appraisal outcomes, extend the period for submission of notifications attracting back-dated payments, and allow for the late submission of notifications. Specifically, section 21.34 and Schedule 1 of the Principles outline these changes. For example, sub-item 1.2(1) sets out a general rule that an approved provider has two months after a resident enters the service to complete appraisal procedures and notify the Secretary of the outcome, while sub-item 1.2(3) extends this period to 1 September 2012 for existing care recipients. Furthermore, sub-item 1.2(4) specifies that if a provider notifies the Secretary before the end of the relevant period, any additional viability supplement payable as a result of the notification takes effect from either 1 July 2011 or the care recipient's entry day, whichever is later. Sub-item 1.2(5) also allows for the late submission of notifications, with any additional viability supplement payable from the day the notification is received by the Secretary. The Amending Principles impose certain obligations on approved providers of eligible aged care services. Firstly, providers must complete appraisal procedures and notify the Secretary of the outcome within the specified timeframes, which are generally two months after the resident enters the service, but no earlier than 28 days after entry. However, if the care recipient dies or leaves the service before the end of 28 days after their entry day, the provider may choose to submit the outcome of the appraisal earlier than the general rule would require. Secondly, providers must ensure that any notifications of appraisal outcomes are submitted to the Secretary by 1 September 2012 for existing care recipients, or within the general rule timeframe for new care recipients. Finally, providers may submit notifications of appraisal outcomes late, with any additional viability supplement payable from the day the notification is received by the Secretary. The Amending Principles do not create any new offences, penalties, or civil/criminal consequences for breach. However, failure to comply with the obligations and requirements outlined in the Principles may result in the approved provider not being eligible to receive additional funding for existing residents, or the back-dating of payments to 1 July 2011 in respect of eligible care recipients who were receiving care at that time. The Principles also correct some minor drafting errors, such as cross-references and the removal of a heading for section 21.35C that was previously removed due to a drafting error. The retrospective commencement of the Amending Principles does not contravene subsection 12(2) of the Legislative Instruments Act 2003 because it increases the opportunities for approved providers to notify the Secretary of the outcome of appraisals that could make them eligible to receive additional funding for existing residents. Retrospective application of these provisions does not impose any disadvantage on any person other than the Commonwealth.

Legal classification tags

Area of Law
Aged Care Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Repeal & Amendment
Transitional Provisions
Offence Provisions
Enforcement Powers
Catchwords
Appraisal outcomes
Back-dated payments

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.