EXPLANATORY STATEMENT
Issued by the authority of the Assistant Minister for Social Services
Aged Care Act 1997
Residential Care Subsidy Amendment (Quality Agency) Principle 2013
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.
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 Principles).
The purpose of the Residential Care Subsidy Amendment (Quality Agency) Principle 2013 (the Amending Principle) is to reflect in the Principles, the replacement of the Aged Care Standards and Accreditation Agency with the new Australian Aged Care Quality Agency (the Quality Agency) from 1 January 2014.
The Amending Principle is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The changes described in the Amending Principle are consequential to the establishment of the new Quality Agency under the Australian Aged Care Quality Agency Act 2013.
The establishment of the Quality Agency was subject to extensive consultation with the aged care sector, consumers and industry and professional bodies. This included consultation on the new legislation via an overview paper, a video presentation detailing the changes, briefing sessions in Melbourne, Sydney and Canberra, and a call for public comment.
As the Amending Principle comprises only minor, technical amendments as a consequence to the establishment of the Quality Agency, no specific consultation has been undertaken on the Amending Principle.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 15170).
Commencement
The Amending Principle commences on 1 January 2014.
ATTACHMENT
Details of the Residential Care Subsidy Amendment (Quality Agency) Principle 2013
Clause 1 states that the name of the Amending Principle is the Residential Care Subsidy Amendment (Quality Agency) Principle 2013.
Clause 2 states that the Amending Principle commences on 1 January 2014.
Clause 3 provides that the authority for the making of the Amending Principle is the Aged Care Act 1997.
Clause 4 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1 – Amendments
Residential Care Subsidy Principles 1997
Item 1 – Section 21.3
Item 1 inserts a new definition for the term ‘Quality Agency’ in section 21.3. ‘Quality Agency’ means the Australian Aged Care Quality Agency. The Quality Agency is established under the Australian Aged Care Quality Agency Act 2013 and replaces the existing Aged Care Standards and Accreditation Agency.
Item 2 – Section 21.3 (note 2 at the end)
Item 2 repeals note 2 at the end of section 21.3 and substitutes a new note. The new note identifies a number of expressions used in the Principles that are defined in the Act. These expressions include accreditation requirement, basic age pension amount, dependent child, and lowest applicable classification level. This amendment is consistent with current drafting conventions that terms used regularly within all aged care principles, such as ‘approved provider’ and ‘care recipient’, are removed. These terms continue, for the purposes of the Principles, to have the meaning set out in the Dictionary in Schedule 1 to the Aged Care Act 1997. Terms used less commonly are specified in the note as expressions that are defined in the Aged Care Act 1997.
Item 3 – Section 21.3B
Section 21.3B of the Principles deals with applications for, and the making of, determinations under subsection 42‑5(1) of the Act that a residential care service is taken, for the purposes of Division 42 of the Act, to meet its accreditation requirement.
This item removes references to the ‘accreditation body’ (within section 21.3B) and replaces that term with references to the ‘Quality Agency’. This is a consequential change as a result of the Aged Care Standards and Accreditation Agency being replaced by the Quality Agency from 1 January 2014. There is no change to the policy relating to determinations under subsection 42‑5(1) of the Act
Item 4 – Subsection 21.3B(1)
This item replaces, in subsection 21.3B(1), a reference to subsection 2.9(2) of the Accreditation Grant Principles 2011 with a new reference to subsection 2.2(2) of the Quality Agency Principles 2013. This is a minor, technical change as a consequence of the Accreditation Grant Principles 2011 being replaced by the Quality Agency Principles 2013. There is no change to the existing policy as a result of this amendment.
Item 5 – Subsection 21.3B(5)
Item 5 replaces, in subsection 21.3B(5), a reference to subsection 2.10(1) of the Accreditation Grant Principles 2011 with a new reference to subsection 2.3(1) of the Quality Agency Principles 2013. This change is consequential to the Accreditation Grant Principles 2011 being replaced by the Quality Agency Principles 2013. There is no change to the existing policy as a result of this amendment.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Residential Care Subsidy Amendment (Quality Agency) Principle 2013
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 Residential Care Subsidy Principles 1997 made under section 96-1 of the Aged Care Act 1997 deal with eligibility for residential care subsidy, how it is paid, and what amount is paid.
The purpose of the Amending Principle is to make consequential changes to the Residential Care Subsidy Principles 1997 to reflect that from 1 January 2014:
- the Australian Aged Care Quality Agency will replace the Aged Care Standards and Accreditation Agency; and
- the Accreditation Grant Principles 2011 (which describe processes relating to the Aged Care Standards and Accreditation Agency) will be replaced by the Quality Agency Principles 2013 which describe the processes relating to the Australian Aged Care Quality Agency.
Human Rights Implications
This legislative instrument makes minor consequential amendments to the Residential Care Subsidy Principles 1997 only and does not engage any human rights issues.
Conclusion
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, as it does not engage any of the applicable rights or freedoms or alter any human rights safeguards currently in place.
Senator the Hon Mitch Fifield
Assistant Minister for Social Services