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Aged Care (Subsidy, Fees and Payments) Amendment (Indexation, Pre-Entry Leave and Other Measures) Determination 2015 [F2015L00996] and Aged Care (Transitional Provisions) (Subsidy and Other Measures) Amendment (Indexation, Pre-Entry Leave and Other Measures) Determination 2015 [F2015L01019]-Response required [2015] AUSStaCSDLM 110 (12 August 2015)

Relationship of instruments to Social Services Legislation Amendment (No. 2) Bill 2015

The instruments increase the amount of subsidies and supplements payable to approved providers of aged care services; and cease the payment of the residential care subsidy to residential aged care providers for pre-entry leave (which relates to the holding of a place for up to seven days prior to a care recipient entering care) from 1 July 2015.

The committee notes that key elements of the instruments may be described as 'mirroring' and anticipating amendments in the Social Services Legislation Amendment (No. 2) Bill 2015 (the bill). The bill passed the House of Representative on 15 June 2015 but has yet to pass the Senate, where the second reading was moved on 16 June 2015.

The committee notes that in each case the ESs for the instruments state:

The Amending Determination will give effect to the removal of pre-entry leave subsidy from 1 July 2015 in the event that Schedule 2 of the Social Services Legislation Amendment (No. 2) Bill 2015 (the Amending Bill), which also contains provisions to remove pre-entry leave subsidy, does not receive Royal Assent by that time. Upon commencement, Schedule 2 of the Social Services Legislation Amendment (No. 2) Bill 2015 (the Amending Bill) will operate to cease the payment of subsidy and supplements during a period of pre-entry leave. If the Amending Bill commences then this Amending Determination will remove unnecessary provisions in the Determination (Schedule 3). If the Amending Bill does not commence by 1 July 2015 then the Amending Determination operates in the alternative to reduce the amount of subsidy paid during pre‑entry leave to nil (Schedule 2).
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The commencement of amendments in Schedule 2 and 3 are dependent on the commencement of Schedule 2 of the Amending Bill. Schedule 2 of this determination commences on 1 July 2015 if Schedule 2 of the Amending Bill has not commenced on 1 July 2015. Schedule 3 of this determination commences immediately after Schedule 2 of the Amending Bill has commenced. If Schedule 2 of the Amending Bill never commences then Schedule 3 of this Amending Determination will never commence.

However, it is unclear to the committee, on the basis of the information provided, what is the reason for introducing these changes via regulation while the bill is still before the Parliament.

The committee seeks the advice of the minister in relation to this matter.