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.
Overview
The User Rights Amendment Principles 2011 (No. 1) was enacted to address the need for updating the maximum daily accrual amount of accommodation charges for specific types of post-2008 reform residents under the Aged Care Act 1997. This legislative instrument was introduced by the Minister for Mental Health and Ageing and aims to align with previously announced Australian Government policy on the rates of accommodation charges. The policy objective behind these amendments is to ensure that the accommodation charge for new residents entering care on or after 20 March 2011 is adjusted in accordance with the established policy framework. The amendments also cater to exceptions for residents who entered care before 1 July 2004 and those in services that do not meet certain building requirements. The legislative changes are intended to streamline the accommodation charge system and ensure consistency and fairness in the aged care sector.
Scope and Application
The User Rights Amendment Principles 2011 (No. 1) are an amendment to the Aged Care Act 1997, focusing on the regulation and funding of aged care services provided by approved residential aged care service providers to approved care recipients. These principles specifically address the maximum daily accrual amount of accommodation charge for specified types of post-2008 reform residents. The application of these principles is national, affecting all approved providers and care recipients across Australia. The changes cater primarily to residents entering care from 20 March 2011 onwards, aligning with Australian Government policy to adjust the maximum accommodation charge twice annually on 20 March and 20 September. Exceptions apply for residents who entered care before 1 July 2004 and for those in services that do not meet certain building requirements. The legislative instrument is subject to the Legislative Instruments Act 2003, ensuring its validity and enforcement within the legal framework.
Key Provisions
The Aged Care Act 1997 is a key piece of legislation that governs the regulation and funding of aged care services in Australia. The Act allows for the provision of residential care subsidy payments to approved providers who offer care to approved care recipients. One of the significant amendments to this Act is the User Rights Amendment Principles 2011 (No. 1), which provides specific details on the maximum daily accrual amount of accommodation charges for certain types of post-2008 reform residents. The accommodation charge is the fee that residents of aged care facilities are required to pay, which is subject to certain caps and adjustments.
The primary sections affected by these amendments are subsections 23.81P(5) to (8) of the User Rights Principles 1997. These subsections have been amended to reflect the new maximum daily accrual amounts for accommodation charges for residents entering care on or after 20 March 2011. The changes aim to align the accommodation charge with the Australian Government policy on increases in these rates. This includes setting a uniform maximum accommodation charge for most new residents entering care from 20 March 2010, with exceptions for those who entered care before 1 July 2004 and those in facilities that do not meet certain building requirements.
The obligations under these principles primarily concern the approved providers and care recipients. Approved providers must ensure they charge the correct accommodation fee as per the amended principles for new residents. Care recipients, particularly those who are self-funded, need to be aware of the new maximum accommodation charges that apply to them. Additionally, the Department of Health and Ageing has a responsibility to communicate these changes effectively to all relevant parties, including disseminating information via electronic media to approved providers.
There are no specific offences, penalties, or civil/criminal consequences outlined in the explanatory statement for non-compliance with these principles. However, failure to adhere to the stipulated accommodation charges could lead to disputes between care recipients and providers, which might necessitate intervention from relevant authorities. It is important for both providers and recipients to understand and comply with these amendments to avoid any potential legal or financial issues.