Federal Register of Legislation - Australian Government

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User Rights Amendment Principles 2009 (No. 1)

Authoritative Version
  • - F2009L01152
  • No longer in force
Principles as made
This instrument amends the User Rights Principles 1997 to spcecify caps on accomodation charges for certain care recipients.
Administered by: Health
Registered 19 Mar 2009
Tabling HistoryDate
Tabled HR12-May-2009
Tabled Senate12-May-2009
Date of repeal 19 Mar 2014
Repealed by Social Services (Spent and Redundant Instruments) Repeal Regulation 2014

 

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Ageing

 

Aged Care Act 1997

 

User Rights Amendment Principles 2009 (No. 1)

 

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. 

 

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.  One of the sets of Principles made under the Act is the User Rights Principles 1997 (the User Rights Principles). 

 

Some care recipients can agree to pay an accommodation charge, which accrues daily and is paid or payable to an approved provider, for the care recipient’s entry to a residential care service.  Section 57A-6 of the Act allows for the maximum daily amount at which an accommodation charge may accrue to be an amount that is specified in, or worked out in accordance with, the User Rights Principles.

 

Section 23.81P of the User Rights Principles specifies a cap on the maximum daily accommodation charge payable by groups of residents based on the date they first entered care, whether they entered or re-entered care on a later date, whether they are in receipt of an income support payment, and whether the service through which they are receiving care meets the building requirements mentioned in section 21.11B of the Residential Care Subsidy Principles 1997.

 

User Rights Amendment Principles 2009 (No. 1)

The User Rights Amendment Principles 2009 (No.1) (the Amending Principles) amend section 23.81P of the User Rights Principles by replacing the previous subsections (5) to (8) with new subsections (5) to (8).

The new subsections (5) to (8) retain the caps on the maximum daily accommodation charge for care recipients who entered or re-entered care during the period from 20 March 2008 to 19 March 2009.  In addition, the new subsections (5) to (8) specify the caps for care recipients who entered or re-entered care during the period from 20 March 2009 to 19 September 2009.

The new subsections (5), (6) and (8) specify different amounts for the maximum daily accommodation charge payable by certain care recipients for entry on or after 20 March 2009, compared to entry before 20 March 2009.  The difference in the amounts specified is in accordance with normal indexation procedures and the policy agreed for the package of changes that commenced on 20 March 2008.

 

The daily amounts listed in new subsections 23.81P (5) and (8) are indexed in the normal way for the next six months by using the 6-month consumer price index inflator to December 2008.

 

The daily amount listed in subsection 23.81P (6) for the post-2008 pensioner is increased by a greater amount set by Government policy so that it will eventually catch up to the amount set for non-pensioners in subsection 23.81P (7), which has also been set by Government policy.

 

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

 

Consultation

The Department of Health and Ageing (the Department) undertook extensive consultation on the policy, which included policy on increases in the maximum daily accommodation charge, that was implemented through the Aged Care Amendment (2008 Measures No. 1) Act 2008 and related amendments to the Principles and other instruments made under the Act.

 

Further consultation was undertaken by the Department on aged care funding arrangements as part of the Review of the Conditional Adjustment Payment and there is ongoing consultation with the aged care industry on funding arrangements.

 

As the indexation of the maximum daily amount of accommodation charge uses a well established formula based on the consumer price index published by the Australian Statistician, and the amounts specified are in accordance with policy upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to the Amending Principles.

 

Information about the increase in the amount of the maximum daily accommodation charge will be sent to all approved providers by facsimile and will be available to the public on the Department’s website.