EXPLANATORY STATEMENT

Issued by the authority of the Minister for Ageing

 Aged Care Act 1997

Quality of Care Amendment Principles 2008 (No. 1)

The Aged Care Act 1997 (the Act) provides for the regulation and Commonwealth funding of aged care services.

Subsection 96-1(1) of the Act provides for 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 s 96-1(1) are the Quality of Care Principles 1997 (the Quality of Care Principles). 

The purpose of the Quality of Care Amendment Principles 2007 (No. 1) (the Amending Principles) is to allow a resident who was receiving a high level of residential care prior to commencement of the Amending Principles  to be taken to continue receiving that care after the introduction of the ACFI.  This will allow such residents to continue to be eligible to receive care and services to be provided for residents receiving a high level of residential care as specified in Schedule 1 Part 3 of the Quality of Care Principles.     

In the 2004 Budget, measures were announced to implement a new funding model for residential aged care with a reduced number of funding categories for personal care.  The funding model is also designed to better target funding towards the care of care recipients with challenging behaviours related to dementia and complex nursing and health care needs including palliative care. 

To initiate these changes the Aged Care Funding Instrument (ACFI) will replace the Resident Classification Scale (RCS) as the means of allocating subsidy to providers of residential aged care. 

The Amending Principles will commence on the commencement of Schedule 1 to the Aged Care Amendment (Residential Care) Act 2007. 

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

Consultation
The Department of Health and Ageing has worked closely with a Reference Group to advise on the development of the new funding model.  Members of this reference group include peak industry bodies, consumer bodies, the Aged Care Standards and Accreditation Agency and the Australian Nursing Federation. 

 Regulation Impact Statement
The Office of Regulation Review has advised that no Regulation Impact Statement is required (RIS ID 8112).

Details of the Amending Principles are set out in Attachment A.

ATTACHMENT A

Details of the Quality of Care Amendment Principles 2008 (No. 1)

Section 1 states that the name of the Principles is the Quality of Care Amendment Principles 2008 (No. 1).

Section 2 states that the Amending Principles commence on  the commencement of Schedule 1 to the Aged Care Amendment (Residential Care) Act 2007.

Section 3 states that Schedule 1 amends the Quality of Care Principles. 

Schedule 1 	Amendments

Item 1
This Item removes two definitions from Section 18.3 which are specific to the RCS and hence will be redundant from the date of commencement of the ACFI.

Item 2
This Item substitutes new subsections 18.6(3) and 18.6(4) for existing subsection 18.6(3).  

New subsection (3) defines which residents will be eligible to receive the services stated in Part 3 of Schedule 1 of the Quality of Care Principles.
  
Paragraph (a) in new subsection (3) will allow a resident who was receiving a high level of residential care on the day before commencement  to be eligible to receive the services stated in Part 3 of Schedule 1 of the Quality of Care Principles.

Paragraph (b) in new subsection (3) will allow a resident who is receiving a high level of residential care (as defined in the Act immediately before commencement) to be eligible to receive the services stated in Part 3 of Schedule 1 of the Quality of Care Principles.

Paragraph (c) in new subsection (3) will allow a resident who is receiving a high level of residential care (as defined in the Act on or after commencement) to be eligible to receive the services stated in Part 3 of Schedule 1 of the Quality of Care Principles.

New subsection (4) inserts a definition of the term commencement used in new subsection (3).