User Rights Amendment Principles 2012 (No. 2)

Administered by Department of Health, Disability and Ageing

Legislation au F2012L01346 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Ageing

 

Aged Care Act 1997

 

User Rights Amendment Principles 2012 (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. 

 

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 User Rights Principles 1997 (the User Rights Principles).

 

Section 56-1 of the Act sets out the responsibilities of an approved provider relating to user rights of care recipients to whom the approved provider provides, or is to provide, residential care.  Paragraph 56-1(m) states that these responsibilities include such other responsibilities as are specified in the User Rights Principles.

 

The purpose of the User Rights Amendment Principles 2012 (No.2) (the Amending Principles) is to specify that approved providers must inform eligible aged care recipients to whom they are providing residential care of their eligibility for a reduction in their basic daily care fees using the methodology described in subsection 21.25F(3) of the Residential Care Subsidy Principles 1997. 

 

Consultation

 

As the effect of the amendments made by the Amending Principles was announced as part of the Clean Energy Futures Household Assistance Package, no specific consultation was undertaken in relation to this instrument.

 

Regulation impact statement

 

The Office of Best Practice Regulation has advised that no Regulation Impact Statement is required (OBPR ID 12669).

 

Further details

 

Further details on the Amending Principles are attached. The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 


 

ATTACHMENT A

 

Details of the User Rights Amendment Principles 2012 (No. 2)
 

Clause 1 – Name of Principles

Clause 1 states that the name of the Amending Principles is the User Rights Amendment Principles 2012 (No. 2).
 

Clause 2 - Commencement

Clause 2 states that the Principles will commence on 1 July 2012.
 

Clause 3 – Amendment of User Rights Principles 1997

Clause 3 states that Schedule 1 amends the User Rights Principles 1997.
 

Schedule 1 – Amendments

Item 1 Section 23.14A, Information to be given to eligible care recipients about reduction in resident fees

 

This item inserts section 23.14A which requires an approved provider to give information to a care recipient, or his or her representative, if the care recipient is eligible for a reduction in the maximum amount of resident fees he or she may be required to pay. 

 

The information the approved provider is required to give is the fact that the care recipient is eligible for the reduction in fees if the approved provider opts to receive additional funding in the form of the basic daily fee supplement.  This information must be given to an eligible care recipient, or his or her representative, whether or not the approved provider opts to receive the basic daily fee supplement.  

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

User Rights Amendment Principles 2012 (No. 2)  

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 purpose of the User Rights Amendment Principles 2012 (No.2) (the Amending Principles) is to ensure that approved providers inform eligible age care residents of their eligibility for a reduction in their basic daily care fees following the implementation of the  basic daily fee Supplement.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

Mark Butler

 

Minister for Mental Health and Ageing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overview

The Aged Care Act 1997, enacted by the Commonwealth Parliament, provides the legislative framework for the funding and delivery of aged care services in Australia. Among the various legislative instruments stemming from this Act, the User Rights Amendment Principles 2012 (No. 2) were introduced to address a specific gap concerning the communication of fee reduction eligibility to aged care recipients. These Amending Principles were designed to ensure that approved providers of residential aged care services inform eligible care recipients about their potential eligibility for a reduction in their basic daily care fees. This legislative amendment was implemented without specific consultation as it was part of the broader Clean Energy Futures Household Assistance Package. The principles were deemed to require no Regulation Impact Statement and are compatible with human rights as they do not engage any of the applicable rights or freedoms. The overarching policy objective is to enhance transparency and ensure that care recipients are adequately informed about financial aspects of their care arrangements.

Scope and Application

The Aged Care Act 1997 applies to approved providers of residential aged care services who are eligible to receive residential care subsidy payments for the care they provide to approved care recipients. These approved providers are mandated to adhere to the responsibilities outlined in the Act, including those specified in the User Rights Principles. The scope of this legislation is national, applying across Australia as a Commonwealth Act. The User Rights Amendment Principles 2012 (No. 2) specifically address the need for approved providers to inform eligible aged care recipients of their entitlement to a reduction in their basic daily care fees, utilising a specified methodology. These amendments do not introduce new exclusions, exemptions, or thresholds but clarify existing obligations. The Act’s application can be extended or restricted through subordinate instruments, as permitted under section 96-1 of the Aged Care Act 1997.

Key Provisions

The User Rights Amendment Principles 2012 (No. 2) primarily amend the existing User Rights Principles 1997 by adding a new section, section 23.14A, which is intended to ensure that approved providers of residential aged care services inform eligible aged care recipients about their potential eligibility for a reduction in their basic daily care fees. This new provision is applicable regardless of whether the approved provider chooses to receive the basic daily fee supplement (section 23.14A). Approved providers are required to provide this information to the care recipient or their representative, ensuring transparency and awareness regarding available fee reductions. The obligations imposed on approved providers under the Amending Principles include the necessity to inform eligible aged care recipients about their eligibility for a reduction in basic daily care fees. This information must be provided irrespective of whether the provider opts to receive the basic daily fee supplement. The approved provider must ensure that the care recipient or their representative is fully informed about the potential fee reduction, thus promoting informed decision-making and transparency in the provision of aged care services (section 23.14A). Breach of the obligations set out in the Amending Principles could potentially lead to administrative or legal consequences, although specific penalties are not detailed within the Amending Principles themselves. However, under the broader Aged Care Act 1997, failure to comply with the provisions regarding user rights could result in sanctions, including financial penalties, corrective actions, or even the suspension or revocation of the provider's approval to operate. These consequences underscore the importance of adherence to the legislative requirements designed to protect the rights and interests of aged care recipients.

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Area of Law
Aged Care Law
Instrument
Regulation
Concepts
Commencement Provisions
Reporting & Disclosure Obligations
Rights & Protections

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.