EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
Residential Care Subsidy Amendment (Transitional Homeless Supplement) Principle 2013
The Aged Care Act 1997 (the Act) provides for the regulation and funding of aged care services. Persons 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).
Part 3.1 of the Act relates to residential care subsidy. Residential care subsidy is a payment by the Commonwealth to approved providers for providing residential care to care recipients. Section 44-5 of the Act provides for the payment of primary supplements. Supplements are paid to approved providers in respect of a payment period as part of residential care subsidy. Section 44-16 of the Act states that the Principles may provide for additional primary supplements.
On 20 April 2012, the Government announced the Living Longer Living Better aged care reform package. As part of the reform, four new supplements will be payable to providers of residential care.
The purpose of the Residential Care Subsidy Amendment (Transitional Homeless Supplement) Principle 2013 (the Amending Principle) is to create the new transitional homeless supplement as an additional primary supplement. Details are set out in the Attachment.
This transitional homeless supplement will be paid to eligible providers until an ongoing Homeless Supplement is introduced. The Government has announced that it will consult with stakeholders on the development of the ongoing Homeless Supplement in 2013-14.
The Amending Principle is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
The Living Longer Living Better aged care reform package was developed in close consultation with the aged care sector, including consumers, industry and professional bodies.
Consultation on the proposed changes to the Act, and to delegated legislation, commenced in November 2012, with the public release of a paper providing an overview of the proposed legislative changes.
A video presentation detailing the changes was also made available through the Living Longer Living Better website, to assist with public understanding of the proposed changes.
During November and December 2012, the Department of Health and Ageing (the Department) also held briefing sessions in Melbourne, Sydney and Canberra on the proposed changes.
Stakeholders and the general community were able to provide written comments during a four-week period (21 November – 21 December 2012). The comments were made publicly available on the Living Longer Living Better website, unless the author requested otherwise. The Department received 54 submissions from members of the public, peak bodies and approved providers in response to the published overview of legislative amendments. Submissions received via the consultation on the overview of the proposed legislative changes were used to inform drafting of the amending bills and the delegated legislation.
In March and April 2013, the Department held industry briefing sessions across Australia to provide information and to explain, in detail, the proposed legislative changes included in the package of Bills introduced into Parliament on 13 March 2013. The briefing sessions also outlined changes to delegated legislation. For those who were unable to attend the briefings a copy of the presentation, supporting handouts, a detailed Questions and Answers document and an information video were made available on the Living Longer Living Better website.
The Senate Community Affairs Legislation Committee in its report on the Living Longer Living Better aged care reform package recommended that the government create a homeless supplement. The Government supported this recommendation.
In the 2011-12 Budget, the Government introduced changes to the viability supplement. These changes included additional funding for providers that specialise in providing care to people who have a history of, or are at risk of, homelessness, following a finding from the Aged Care Funding Instrument (ACFI) review. Recent monitoring of the changes suggests that additional assistance above that already provided is required to support the ongoing viability of these services.
The Amending Principle introduces a new transitional homeless supplement to provide additional funding for those approved providers who specialise in caring for people with a history of, or at risk of, homelessness.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 15086).
Commencement
The Amending Principle commences on 1 October 2013.
ATTACHMENT
Details of the Residential Care Subsidy Amendment (Transitional Homeless Supplement) Principle 2013
Clause 1 states that the name of the Amending Principle is the Residential Care Subsidy Amendment (Transitional Homeless Supplement) Principle 2013.
Clause 2 states that the Amending Principle commences on 1 October 2013.
Clause 3 provides that the authority for the making of the Amending Principle is the Aged Care Act 1997 (the Act).
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
Item 1 – After section 21.25E
This item inserts a new section in the Principles.
Section 21.25EA – Transitional Homeless Supplement
This section describes the eligibility criteria for the transitional homeless supplement.
An aged care service is eligible for the transitional homeless supplement if more than 50% of care recipients of the service (other than care recipients receiving respite care) have a history of, or are at risk of homelessness. This is determined by appraising care recipients using Appraisal Tool A in section 1.3 of Schedule 2. A person meets the criteria if the person demonstrates complex behavioural needs and social disadvantage associated with their background as a homeless person.
In addition, in order to be eligible for the transitional homeless supplement:
- the residential care places at the service must be subject to a condition of allocation relating to the care of people with a background as homeless persons. In other words, the places allocated to the service must be targeted at people with a background of, or at risk of, homelessness; and
- the approved provider or its key personnel must have experience in providing, or the capacity to provide, specialist services for people with a history of, or at risk of, homelessness. For example, programs and interventions to manage complex behavioural needs or programs to promote social engagement and participation.
Item 2 – After paragraph 21.30(1)(g)
Section 21.30 of the Principles describes classes of people who do not pay income tested fees in accordance with subsection 44-22(1) of the Act. This item inserts a new paragraph in subsection 21.30(1) to provide that approved care recipients receiving residential care in a service that is receiving the transitional homeless supplement will not pay an income tested care fee.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Residential Care Subsidy Amendment (Transitional Homeless Supplement) Principle 2013
The 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 Principles set out the requirements for the residential care subsidy. The subsidy is a payment by the Commonwealth to approved providers for providing residential care to care recipients. Section 44-5 of the Act provides for the payment of primary supplements.
The purpose of the Residential Care Subsidy Amendment (Transitional Homeless Supplement) Principles 2013 (Legislative Instrument) is to create a new primary supplement – the transitional homeless supplement.
Human Rights Implications
The Legislative Instrument is compatible with the right to an adequate standard of living and the right to the enjoyment of the highest attainable standard of physical and mental health as contained in article 11(1) and article 12(1) International Covenant on Economic, Social and Cultural Rights and article 25 and article 28 of the Convention on the Rights of Persons with Disabilities.
The Legislative Instrument enables Government to give additional funding to providers specialising in giving care to people with special needs based on their history of, or risk of, homelessness.
Conclusion
This Legislative Instrument is compatible with human rights as it promotes the human right to health and the right to an adequate standard of living.
The Hon Mark Butler MP
Minister for Mental Health and Ageing