Commonwealth of Australia Explanatory Memoranda

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AGED CARE AMENDMENT (IMPLEMENTING CARE REFORM) BILL 2022

                                   2022




    THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                   HOUSE OF REPRESENTATIVES




AGED CARE AMENDMENT (IMPLEMENTING CARE REFORM) BILL 2022




        SUPPLEMENTARY EXPLANATORY MEMORANDUM




          Amendments to be moved on behalf of the Government




         (Circulated by the authority of the Minister for Aged Care,
                         the Hon Anika Wells MP)


AMENDMENTS TO AGED CARE AMENDMENT (IMPLEMENTING CARE REFORM) BILL 2022 OUTLINE The Aged Care Amendment (Implementing Care Reform) Bill 2022 amends the Aged Care Act 1997 (Aged Care Act) to implement a series of urgent measures that will give older Australians the dignity and respect they deserve. These amendments are intended to enable meaningful, practical improvements to the delivery of aged care services and to provide greater oversight and understanding of what funds are being used for. These measures put the quality of care and safety of older Australians first. Amendments to Schedule 1 Schedule 1 of the Bill amends the Aged Care Act to establish a new responsibility for approved providers of residential care and certain kinds of flexible care (specified in the Quality of Care Principles 2014 (Quality of Care Principles)) to ensure that a registered nurse (within the meaning of the Health Insurance Act 1973) is on site and on duty (that is, 24 hours each day, 7 days each week) at all times at each residential facility that they operate. The Government amendments to Schedule 1 provide additional clarity on arrangements that the Quality of Care Principles must make provision for in relation to the granting of an exemption from the new responsibility. This includes identifying the Secretary as the decision maker in respect to any exemption (whether made on application or otherwise), matters the Secretary must consider when granting an exemption and that any exemption must not be granted for a period exceeding 12 months. The amendments also provide for the publication of exemptions that are granted. Reviewability of Decision to Grant an Exemption The Quality of Care Principles will be amended to provide for a decision of the Secretary to grant an exemption to be a reviewable decision for the purposes of the Aged Care Act. Item 59 to the table in section 85-1 of the Aged Care Act allows for decisions under Principles made under section 96-1 (including the Quality of Care Principles) to be a reviewable decision, where that is specified in the Principles concerned. Financial Impact Statement Nil. Consultation These amendments respond to matters raised through the Senate Community Affairs Legislation Committee inquiry into the Aged Care Amendment (Implementing Care Reform) Bill 2022 [Provisions]. 1


Statement of Compatibility with Human Rights Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 AGED CARE AMENDMENT (IMPLEMENTING CARE REFORM) BILL 2022 This Bill 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 2011. Overview of the Bill The purpose of the Aged Care Amendment (Implementing Care Reform) Bill 2022 is to amend the Aged Care Act 1997 (Aged Care Act) to effect meaningful changes to the delivery of aged care services and the means for care recipients and their families to assess the relative quality of service delivery by care providers and at individual care facilities. Schedule 1 - Registered nurses Schedule 1 to the Bill creates a new responsibility in the Aged Care Act for approved providers of residential care and certain kinds of flexible care (as specified in the Quality of Care Principles 2014 (Quality of Care Principles)) to have a registered nurse (within the meaning of the Health Insurance Act 1973) on site and on duty at all times (that is, 24 hours each day, 7 days each week) at each residential facility they operate. The new responsibility will complement existing approved provider responsibilities in aged care legislation, including maintaining an adequate number of appropriately skilled staff to ensure the care needs of care recipients are met, and to provide such care and services as are specified in the Quality of Care Principles. Human rights implications Schedule 1 - Registered nurses Schedule 1 to the Bill engages the right to health in article 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) and article 25 of the Convention on the Rights of Persons with Disabilities (CRPD). Right to health These articles refer to the right of individuals, including persons with disability, to the highest attainable standard of physical and mental health. Schedule 1 promotes the right to health by explicitly requiring and strengthening the obligation for quality health services to be made available to care recipients of residential care at all times. Conclusion The Bill is consistent with human rights as it promotes the rights of older Australians. To the extent that the Bill may limit human rights this is reasonable, necessary and proportionate to protect the rights of older Australians. [Circulated by the authority of the Minister for Aged Care, the Hon Anika Wells MP] 2


AMENDMENTS TO AGED CARE AMENDMENT (IMPLEMENTING CARE REFORM) BILL 2022 NOTES ON CLAUSES Schedule 1 - Registered nurses Amendment (1) - Schedule 1, item 2, page 3 (line 26) to page 4 (line 6) Amendment (1) omits subsection 54-1A(4) in Schedule 1 of the Bill to substitute new subsection 54-1A(4). New subparagraphs 54-1A(4)(a)(i) and (ii) provide that the Quality of Care Principles 2014 (Quality of Care Principles) made for the purposes of subsection 54-1A(3) must provide for circumstances in which an exemption to the new requirement in subsection 54-1A(2) (Registered Nurse requirement) may be granted by the Secretary. It also requires that the Quality of Care Principles provide that before granting such an exemption, the Secretary must be satisfied that the provider has taken reasonable steps to ensure that the clinical care needs of the care recipients in the facility will be met during the period for which the exemption is in force. The Secretary would also have the ability to delegate this power under subsection 96-2 of the Aged Care Act 1997 (Aged Care Act). New subparagraph 54-1A(4)(a)(ii) ensures that the intention of the legislation, being that older Australians living in residential aged care receive the clinical care they need, is at the centre of any decision made to grant an exemption to this important requirement. New paragraph 54-1A(4)(b) provides that an exemption granted to an approved provider in relation to the new Registered Nurse requirement must not be in force for more than 12 months. Exemptions are not intended to be a permanent and setting a 12-month maximum period for an exemption will ensure that exemptions are regularly reviewed. New subparagraph 54-1A(4)(c) provides that more than one exemption may be granted to an approved provider in relation to the facility. This means that, should an exemption expire following the 12 month period (or other period specified in the exemption), the approved provider would be able to reapply for a new exemption on the same or different grounds. New paragraph 54-1A(4)(d) contains only minor amendments and has a similar effect to previous paragraph 54-1A(4)(c). New subsection 54-1A(5) provides that if an approved provider is granted an exemption by the Secretary in relation to the Registered Nurse requirement, the Secretary must make publicly available information about the exemption, including: • the name of the provider and the facility; and • the period for which the exemption is in force; and • any conditions that apply to the exemption; and • any other information of a kind specified in the Quality of Care Principles. 3


It is appropriate to make this information public, as it is anticipated this will further incentivise providers to meet the requirement, rather than seek an exemption. It will also increase transparency, providing older people and their families with information about whether approved providers have a registered nurse on site and on duty 24 hours a day 7 days a week and ensure they can make more informed decisions about their care. 4


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