EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
User Rights Amendment Principles 2011 (No. 1)
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 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 2011 (No. 1) (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) – (8) is to increase the maximum amount of accommodation charge for residents entering care on or after 20 March 2011, in accordance with previously announced Australian Government policy.
Further details on the Amending Principles are attached.
The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
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 electronic media to approved providers.
ATTACHMENT
Clause 1 – Name of Principles
Clause 1 states that the name of the Amending Principles is the User Rights Amendment Principles 2011 (No. 1).
Clause 2 – Commencement
Clause 2 states that the Principles commence on 20 March 2011.
Clause 3 – Amendment of User Rights Principles
Clause 3 states that Schedule 1 amends the User Rights Principles 1997.
Schedule 1 – Amendments
Items 1, 2, 3 and 4 – Sections 28.81P(5) to (8)
These items 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.