EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
User Rights Amendment Principles 2010 (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.
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 User Rights Principles 1997 (the User Rights Principles).
The purpose of the User Rights Amendment Principles 2010 (No. 2) (the Amending Principles) is to specify for the purposes of paragraph 57A-6(1)(c) of the Act the maximum daily accrual amount of accommodation charge for specified types of post-2008 reform residents. The accommodation charge has been increased in accordance with previously announced Australian Government policy.
The maximum amount of accommodation charge is capped based on when a care recipient enters residential aged care. Until 2010, the maximum accommodation charge was different for residents receiving an income support payment and self-funded retirees. The maximum amount of accommodation charge for pensioners and self-funded retirees entering care from 20 March 2010 onwards, became the same in most cases.
The exceptions to this general rule are people who first entered care before 1 July 2004 (whose maximum accommodation charge is lower) and people who are receiving care through a service that does not meets certain building requirements (whose maximum accommodation charge is also lower). While the maximum amount of accommodation charge payable by existing residents remains the same while they are in care, the maximum accommodation charge for new residents is adjusted twice per year (on 20 March and 20 September) in accordance with Australian Government policy.
The purpose of the amendments to subsections 23.81P(5) to (8) is to increase the maximum amount of accommodation charge for residents entering care on or after 20 September 2010, in accordance with previously announced Australian Government policy.
Further details on the Amending Principles are attached.
Consultation
The Department of Health and Ageing undertook extensive consultation on the policy, which included policy on increases in the rates of accommodation charge, that was implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 and related instruments.
Further consultation was also undertaken as part of the Review of the Conditional Adjustment Payment and is ongoing in relation to funding arrangements.
Information about the increase in the amount of accommodation charge will be disseminated via print and electronic media to approved providers.
The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
ATTACHMENT
Clause 1 states that the name of the Amending Principles is the User Rights Amendment Principles 2010 (No. 2).
Clause 2 states that the Principles commence on 20 September 2010.
Clause 3 states that Schedule 1 amends the User Rights Principles.
Schedule 1 Amendments
Items 1, 2, 3 and 4 replace existing subsections 23.81P (5), (6), (7) and (8) with new subsections which specify for paragraph 57A-6 (1) (c) of the Act the maximum daily accrual amount of accommodation charge for certain types of post-2008 reform residents.
Overview
The User Rights Amendment Principles 2010 (No. 2) were enacted to address specific concerns regarding the maximum daily accrual amount of accommodation charges for residents in aged care facilities, particularly those entering care post-2008. This legislation was introduced as an amendment to the Aged Care Act 1997, overseen by the Australian Parliament. The primary objective of this amendment is to align the maximum accommodation charge for new residents with the Australian Government's policy on accommodation charges, particularly ensuring that the charge is consistent for both pensioners and self-funded retirees entering care from 20 March 2010 onwards, with exceptions for those entering care before 1 July 2004 and those residing in services that do not meet certain building requirements. The legislation also mandates that the maximum amount of accommodation charge for new residents be adjusted semi-annually in accordance with government policy.
Scope and Application
The User Rights Amendment Principles 2010 (No. 2) amends the Aged Care Act 1997 to adjust the maximum daily accrual amount of accommodation charge for specified types of post-2008 reform residents. These principles apply to approved providers who offer residential aged care services and the care recipients they serve, with particular relevance to those entering care on or after 20 March 2010. The amendments unify the maximum accommodation charge for pensioners and self-funded retirees entering care after the specified date, while maintaining different caps for those who entered care before 1 July 2004 and for services that do not meet certain building requirements. The changes are implemented in accordance with Australian Government policy and are intended to align with previously announced increases in accommodation charges. The User Rights Amendment Principles 2010 (No. 2) have a national jurisdictional reach and extend the application of the Aged Care Act 1997 by specifying the maximum accommodation charges for different categories of residents. The amendments are subject to further adjustments as per Australian Government policy, with maximum charges being reviewed and updated twice a year.
Key Provisions
The Aged Care Act 1997 (the Act) includes provisions that govern the funding of aged care services, particularly in relation to residential aged care. Under section 96-1(1), the Minister has the authority to make Principles that address various matters required or permitted by the Act, such as the User Rights Principles 1997. The User Rights Amendment Principles 2010 (No. 2) (the Amending Principles) were made to specify the maximum daily accrual amount of the accommodation charge for certain post-2008 reform residents, aligning with Australian Government policy. These principles became effective from 20 March 2010 and adjusted the accommodation charge based on when a care recipient entered residential aged care.
Approved providers of residential aged care services, who are eligible to receive residential care subsidy payments, must adhere to the provisions of the Act and the Amending Principles. These providers must ensure they are aware of the maximum daily accrual amount of accommodation charge for different categories of residents. For example, residents entering care from 20 March 2010 onwards, generally have the same maximum accommodation charge, although exceptions exist for those who entered care before 1 July 2004 and for residents in services that do not meet certain building requirements. Furthermore, the maximum accommodation charge for new residents is adjusted twice a year, in line with government policy.
Breaches of the requirements set out in the Amending Principles could result in various consequences. While the Amending Principles do not explicitly detail specific offences, penalties, or civil/criminal consequences for non-compliance, such breaches could potentially lead to legal actions under the Aged Care Act 1997. This could include the imposition of fines, sanctions, or other penalties as deemed appropriate by the relevant authorities. The Act itself provides for a range of enforcement mechanisms, and the Department of Health and Ageing may take action to ensure compliance with the principles.