Federal Register of Legislation - Australian Government

Primary content

ACA Ch.3 No. 12/2007 Determinations/Aged Care as made
This instrument determines the amount of transitional supplement payable in respect of a day.
Administered by: Health
Registered 28 Jun 2007
Tabling HistoryDate
Tabled HR07-Aug-2007
Tabled Senate07-Aug-2007
Date of repeal 20 Mar 2008
Repealed by Aged Care (Residential care subsidy - amount of transitional supplement) Determination 2008

 

EXPLANATORY STATEMENT

 

AGED CARE ACT 1997

 

SECTION 44-16

 

 

DETERMINATION OF RATES OF FINANCIAL ASSISTANCE

(ACA Ch. 3 No. 12/2007)

 

 

TRANSITIONAL SUPPLEMENT

 

Subsection 44-16(3) of the Aged Care Act 1997 provides that the Minister may determine in writing the amount of additional primary supplements or the way in which the amount of the supplement is to be worked out.  Subsection 44-16(1) of the Act provides that the Residential Care Subsidy Principles 1997 may provide for additional primary supplements.  Section 21.26 of the Residential Care Subsidy Principles 1997 provides for the eligibility for payment of the transitional supplement. 

 

An aged care service is eligible for the payment of transitional supplement when residential care other than respite care is provided to:

 

·        A care recipient who, after 30 September 1997, entered a residential care service that was not certified on the day the care recipient entered the service; or

·        A person who:

 

·        on 30 September 1997 occupied a hostel place as defined under the Aged or Disabled Persons Care Act 1954; and

·        on 30 September 1997 was a financially disadvantaged person for General Conditions formulated under section 10F of that Act; and

·        after 30 September 1997 continued to receive residential care from the service; and

·        has been classified under Part 2.4 of the Act

 

·        A person who:

 

·        on 30 September 1997 occupied a nursing home bed in a nursing home approved under section 40AA of the National Health Act 1953; and

·        after 30 September 1997 continued to receive residential care from the service; and

·        has been classified under Part 2.4 of the Act.

 

 

 

 

This determination sets the transitional supplement rates with effect from 1 July 2007. This amount is equivalent to the concessional resident supplement for services where more than 40% of the residents are concessional or assisted residents.

 

 

All residential care subsidy rates are indexed on 1 July each year.  The index incorporates movements in wage costs and non-wage costs. The wage costs component is calculated using the annualised dollar figure of the October 2006 Federal Minimum Wage decision of the Australian Fair Pay Commission expressed as a proportion of the (latest available) Average Weekly Ordinary Time Earnings at the time of the AFPC decision. The non-wage costs index is based on the Consumer Price Index exclusive of the impact of A New Tax System consistent with a whole of government decision.

 

Consultation

 

As the indexation of this supplement uses a well established formula for indexation, no specific consultation with industry was undertaken with respect to this instrument.