Federal Register of Legislation - Australian Government

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Determinations/Health as made
This instrument amends the Aged Care (Subsidy, Fees and Payments) Determination 2014 to apply routine indexation to the amount of subsidies and supplements payable to approved providers in respect of a day from 1 July 2022 and to increase the income thresholds for home care subsidy reductions to retain parity with income thresholds for age pension purposes.
Administered by: Health and Aged Care
Registered 29 Jun 2022
Tabling HistoryDate
Tabled HR26-Jul-2022
Tabled Senate26-Jul-2022
Date of repeal 26 Oct 2022
Repealed by Division 1 of Part 3 of Chapter 3 of the Legislation Act 2003

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Aged Care

 

Aged Care Act 1997

 

Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2022

 

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 aged care services (approved providers) may be eligible to receive subsidy and supplement payments in respect of the care they provide to approved care recipients.

 

Purpose

The Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2022 (the Amending Determination) amends the Aged Care (Subsidy, Fees and Payments) Determination 2014 (Subsidy, Fees and Payments Determination).

 

The purpose of the Amending Determination is to apply routine indexation to the amount of subsidies and supplements payable to approved providers in respect of a day from 1 July 2022 and to increase the income thresholds for home care subsidy reductions to retain parity with income thresholds for age pension purposes.

 

The Amending Determination applies to care recipients who are not continuing care recipients. Continuing care recipients are those who entered an aged care service before 1 July 2014 and since that time have not left the service for a continuous period of more than 28 days (other than because the person is on leave), or before moving to another service, have not made a written choice to be subject to the new rules relating to fees and payments that took effect on 1 July 2014.

 

The amount of subsidy and supplements payable in respect of continuing care recipients is detailed in the Aged Care (Transitional Provisions) Principles 2014, and the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014. Those Principles and that Determination will be amended by the Aged Care (Transitional Provisions) Amendment (July Indexation) Determination 2022

 

The Amending Determination is a legislative instrument for the purposes of the Legislation Act 2003.

 

Authority

The Act provides that for each type of aged care, the Minister may determine, by legislative instrument, the amount of subsidy and supplement payable to an approved provider for the provision of that type of aged care. Specifically, the authority provisions in the Act for making specific determinations in the Amending Determination are set out in the following table:

 

Type of Care

Section

Residential care                                    

Basic subsidy amount

subsection 44-3(2)

Primary supplement amount

subsection 44-5(3)

Adjusted subsidy reduction amount

subsection 44-19(2)

Other supplement amount

subsection 44-27(3)

Home care

Basic subsidy amount

subsection 48-2(2)

Primary supplement amount

subsection 48-3(3)

Care subsidy reduction income thresholds

subsection 48-7(6)

Other supplement amount

subsection 48-9(3)

Flexible care

Flexible care subsidy

section 52-1

 

Reliance on subsection 33(3) of the Acts Interpretation Act 1901

Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

 

Commencement

The Amending Determination commences on 1 July 2022.

 

Consultation

The routine indexation of subsidies and supplements in this Amending Determination is calculated through the use of a well-established formula based on the relevant wage and price indices. Accordingly, no specific consultation was undertaken by the Department of Health with respect to the amounts to which routine indexation has been applied in this Amending Determination.

 

Regulation Impact Statement (RIS)

The Office of Best Practice Regulation (OBPR) has previously advised that a Regulation Impact Statement is not required for legislative instruments in order to implement routine indexation (OBPR ID 11719).

 

 


ATTACHMENT

Details of the Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2022

 

Section 1 provides that the name of the instrument is the Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2022.

 

Section 2 states that the instrument commences on 1 July 2022.

 

Section 3 provides that the authority for the making of the instrument is the Aged Care Act 1997.

 

Section 4 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

 

Schedule 1 – Amendments

 

Item 1 – Amendments of listed provisions – indexation of amounts

This item provides for the indexation of various amounts referred to in the Aged Care (Subsidy, Fees and Payments) Determination 2014 (Subsidy, Fees and Payments Determination) in relation to the following as set out in the table:

·         the basic subsidy amount for residential care;

·         the oxygen supplement amount for residential care and home care;

·         the enteral feeding supplement amount for residential care and home care;

·         the adjusted subsidy reduction amount for residential care;

·         the viability supplement safety net amount for residential care;

·         the veterans’ supplement amount for residential care;

·         the homeless supplement amount for residential care;

·         the home care subsidy reduction income thresholds; and

·         the amount of flexible care subsidy.

 

Item 2 – Subsection 7(3) (table)

This item provides for the indexation of amounts in relation to the Aged Care Funding Instrument (ACFI) amounts by repealing the table to subsection 7(3) in the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 3 – Section 57 (table)

This item provides for the indexation of amounts in relation to the amount of viability supplement for care recipients being provided with residential care through a 1997 scheme service (as defined in section 56 of the Subsidy, Fees and Payments Determination) by repealing the table to section 57 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 4 – Section 58 (table)

This item provides for the indexation of amounts in relation to the amount of viability supplement for care recipients being provided with residential care through a 2001 scheme service (as defined in section 56 of the Subsidy, Fees and Payments Determination) by repealing the table to section 58 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 5 – Section 59 (table)

This item provides for the indexation of amounts in relation to the amount of viability supplement for care recipients being provided with residential care through a 2005 scheme service (as defined in section 56 of the Subsidy, Fees and Payments Determination) by repealing the table to section 59 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 6 – Section 60A (table)

This item provides for the indexation of amounts in relation to the amount of viability supplement for care recipients being provided with residential care through a 2017 scheme service (as defined in section 56 of the Subsidy, Fees and Payments Determination) by repealing the table to section 60A of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 7 – Section 67 (table)

This item provides for the indexation of amounts in relation to the basic subsidy amount for home care by repealing the table to section 67 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 8 – Section 84A (table to the definition of ARIA value viability supplement amount)

This item provides for the indexation of amounts in relation to the amount of viability supplement for home care by repealing the table to the definition of ARIA value viability supplement amount in section 84A of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 9 – Section 84A (table to the definition of MMM classification viability supplement amount)

This item provides for the indexation of amounts in relation to the amount of viability supplement for home care by repealing the table to the definition of MMM classification viability supplement amount in section 84A of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 10 – Section 87 (table to the definition of ARIA value additional amount)

This item provides for the indexation of amounts in relation to the amount of viability supplement for a home care place allocated in respect of a multi-purpose service by repealing the table to the definition of ARIA value additional amount in section 87 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 11 – Section 87 (table to the definition of MMM classification additional amount)

This item provides for the indexation of amounts in relation to the amount of viability supplement for a home care place allocated in respect of a multi-purpose service by repealing the table to the definition of MMM classification additional amount in section 87 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 12 – Section 94 (table)

This item provides for the indexation of amounts in relation to the respite supplement equivalent amount for a multi-purpose service by repealing the table to section 94 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 13 – Section 97 (table)

This item provides for the indexation of amounts in relation to the viability supplement equivalent amount for Category A services by repealing the table to section 97 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 14 – Section 98 (table)

This item provides for the indexation of amounts in relation to the viability supplement equivalent amount for Category B services by repealing the table to section 98 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 15 – Section 99 (table)

This item provides for the indexation of amounts in relation to the viability supplement equivalent amount for Category C services by repealing the table to section 99 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 16 – Section 99A (table)

This item provides for the indexation of amounts in relation to the viability supplement equivalent amount for Category D services by repealing the table to section 99A of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 17 – Section 101 (table)

This item provides for the indexation of amounts in relation to the concessional resident equivalent amounts for multi-purpose services by repealing the table to section 101 of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 18 – Subsection 104(1) (table)

This item provides for the indexation of amounts in relation to the amount of flexible care subsidy for care through an innovative care service by repealing the table to subsection 104(1) of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amounts.

 

Item 19 – Subsection 104(2) (table)

This item provides for the indexation of amounts in relation to the amount of flexible care subsidy for care through an innovative care service by repealing the table to subsection 104(2) of the Subsidy, Fees and Payments Determination and substituting a new table with the indexed amount.


 

Statement of Compatibility with Human Rights

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

 

Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2022

The Aged Care (Subsidy, Fees and Payments) Amendment (July Indexation) Determination 2022 (the Amending Determination) 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) Act 2011.

 

Overview of Legislative Instrument

The Amending Determination amends the Aged Care (Subsidy, Fees and Payments) Determination 2014. It increases the amount of particular subsidies and supplements payable to approved providers of aged care services for a day from 1 July 2022. 

 

Human Rights Implications

The Amending Determination is compatible with the right to an adequate standard of living and the right to the enjoyment of the highest attainable standard of physical and mental health as contained in articles 11(1) and 12(1) of the International Covenant on Economic, Social and Cultural Rights, and articles 25 and 28 of the Convention on the Rights of Persons with Disabilities.

 

The Amending Determination applies routine indexation to increase the amount of subsidies and supplements payable to approved providers for the provision of care and services to people with a condition of frailty or disability who require assistance to achieve and maintain the highest attainable standard of physical and mental health.

 

Aged Care legislation requires government-subsidised aged care homes meet standards to ensure that quality care and services are provided to all residents. The Australian Government’s spending on aged care will protect aged care recipient’s rights to an adequate standard of living.

 

Conclusion

The Amending Determination is compatible with human rights as it promotes the human right to an adequate standard of living and the highest attainable standard of physical and mental health.

 

 

The Hon. Anika Wells MP

Minister for Aged Care