EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
Aged Care Act 1997
User Rights Amendment Principles 2012 (No. 3)
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 2012 (No. 3) ‘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 September 2012, in accordance with previously announced Australian Government policy.
Consultation
Indexation of the accommodation charge is in accordance with previously announced Australian Government upon which extensive consultation was undertaken. No specific consultation was undertaken with respect to the Amending Principles.
Information about the increase in the amounts of accommodation charge will be disseminated via electronic media to approved providers.
The Amending Principles commence on 20 September 2012.
The Amending Principles are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Aged Care Act 1997 governs the regulation and funding of aged care services in Australia, allowing approved providers to receive residential care subsidy payments for the care they offer to approved recipients. The User Rights Amendment Principles 2012 (No. 3) were introduced to address the need for updating the maximum daily accrual amount of accommodation charge for specified types of post-2008 reform residents, as mandated by the Act. The Minister for Mental Health and Ageing, acting under subsection 96-1(1) of the Aged Care Act 1997, established these principles to align with previously announced Australian Government policy. The policy objective behind these amendments was to ensure the accommodation charge is indexed in accordance with government policy, although no specific consultation was undertaken regarding these particular amendments. The changes to the maximum accommodation charge for new residents, effective from 20 September 2012, were disseminated to approved providers through electronic media.
Scope and Application
The Aged Care Act 1997 applies to approved providers who deliver residential aged care services and the recipients of these services, known as approved care recipients. These principles are designed to regulate and fund aged care services within the Australian Commonwealth jurisdiction. The User Rights Amendment Principles 2012 (No. 3) specifically address the maximum daily accrual amount of accommodation charges for different categories of residents entering residential care post-2008 reform. These principles cap the charges based on the date of entry into care, with variations for those entering before 1 July 2004 and for services not meeting specific building requirements. The amendments to subsections 23.81P(5) – (8) were made to adjust the maximum accommodation charge for new residents in accordance with Australian Government policy, effective from 20 September 2012. These principles are subject to change twice a year in line with policy updates, with communication to approved providers being conducted through electronic media. The Amending Principles are subordinate instruments under the Legislative Instruments Act 2003.
Key Provisions
The Aged Care Act 1997, as amended by the User Rights Amendment Principles 2012 (No. 3), introduces several provisions that affect the accommodation charges for aged care residents. These provisions are primarily concerned with setting the maximum daily accrual amount of the accommodation charge for specified types of post-2008 reform residents. According to the Act, the maximum accommodation charge is contingent on the date a care recipient enters residential aged care (subsections 23.81P(5)-(8)). For instance, the maximum charge is different for residents entering care before 20 March 2010 compared to those entering after this date. Notably, the maximum charge for pensioners and self-funded retirees entering care from 20 March 2010 onwards is generally the same, with exceptions for those who entered care before 1 July 2004 and for residents in services that do not meet certain building requirements.
Approved providers of residential aged care services must adhere to these principles to ensure compliance with the accommodation charge regulations. These providers must be aware of the specific dates and categories that dictate the maximum accommodation charges and ensure that they are correctly applied to new residents entering care from 20 September 2012 onwards. This includes understanding the differences in charges for residents entering before and after certain key dates, as well as for those in services that do not meet specific building requirements.
Failure to comply with these provisions may result in civil or criminal consequences. While the explanatory statement does not specify exact penalties, breaches of the Aged Care Act 1997 can lead to enforcement actions by the relevant authorities. These actions may include fines or other sanctions, as prescribed by the Act. The maximum penalties for such breaches would depend on the specific nature and severity of the non-compliance. It is essential for approved providers to stay informed about these regulations and ensure they are implemented correctly to avoid any legal repercussions.