EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Residential Care Subsidy Amendment Principles 2012 (No. 3)
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.
Under paragraph 44-22(1)(b) of the Aged Care Act 1997 (the Act) the daily income tested reduction in respect of a care recipient is taken to be zero for each day during the payment period (a period in respect of which residential care subsidy is payable in respect of a residential care service) if a determination was in force under subsection 44-22(2) of the Act in relation to the care recipient.
Under subsection 44-22(2) of the Act the Secretary may determine in accordance with the Residential Care Subsidy Principles 1997 that the daily income tested reduction in respect of a care recipient is taken to be zero.
While the Secretary has the power to, and does, make determinations under subsection 44-22(2), there are currently no matters in the Residential Care Subsidy Principles to which the Secretary must have regard in deciding to make a determination that the daily income reduction in respect of the care recipient is taken to be zero. It is therefore appropriate that matters to which the Secretary must have regard be inserted by way of the Residential Care Subsidy Amendment Principles 2012 (No. 3) (Amending Principles) as a new section 21.29A in Part 12 of the Residential Care Subsidy Principles.
Amendments to the matters set out in section 21.39 of the Residential Care Subsidy Principles have been made consistent with the matters set out in the new section 21.29A. These changes are made to address references that are now out-of-date.
Details on the Amending Principles are set out in the Attachment.
Consultation
As the amendments do not impose any disadvantage on any person other than the Commonwealth, no consultation was undertaken.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 14239).
Commencement
This instrument commences the day after registration.
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. 3)
Clause 1 – Name of Principles
Clause 1 states that the name of the Amending Principles is the Residential Care Subsidy Amendment Principles 2012 (No. 3).
Clause 2 – Commencement
Clause 2 states that the Principles are to commence the day after registration.
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 21.29
Item 1 amends the boxed note to specify that the purpose of Part 12 of the Residential Care Subsidy Principles to include the matters to which the Secretary must have regard in deciding whether to make a determination that the daily income tested reduction in respect of a care recipient is taken to be zero.
Item 2 After section 21.29
Item 2 inserts section 21.29A, ‘The matters’, which specify ten matters to which the Secretary must have regard, as well as any other matter the Secretary considers relevant. In order to consider all of the mandatory matters, it also enables the Secretary to require or to advise a care recipient to certain seek information and advice as is required.
Item 3 Paragraph 21.39 (3) (c)
Item 3 inserts references to legislation under which a care recipient might be entitled to income support.
Item 4 Paragraph 21.39 (3) (i)
Item 4 removes an out-dated reference to subsection 11 (14) of the Social Security Act 1991.
Item 5 Subsection 21.39 (3)
Item 4 amends an out-dated reference to the Department of Social Security and ensures consistency with the corresponding matter in section 21.29A.
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. 3)
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
The purpose of the Residential Care Subsidy Amendment Principles 2012 (No. 3) is to provide matters to which the Secretary must have regard in deciding to make a determination that the daily income reduction in respect of the care recipient is taken to be zero.
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.
Mark Butler
Minister for Mental Health and Ageing