It amends the Aged Care Act 1997 to introduce an additional, discretionary procedure for classification of recipients of residential aged care and some kinds of flexible care, using a new assessment tool – the Australian National Aged Care Classification tool.
Current arrangements (pre-1 March 2021)
Before the Commonwealth can pay a subsidy to an approved provider for the provision of care to a care recipient, the following must occur:
The care recipient must (in most cases) be approved in respect of the type of aged care provided.
See Part 2.3 of the Aged Care Act – APPROVAL OF CARE RECIPIENTS
A person must be approved under this Part to receive either residential care or home care before an approved provider can be paid *residential care subsidy or *home care subsidy for providing that care. In some cases, approval under this Part to receive flexible care is required before *flexible care subsidy can be paid.
The care recipient must then (in the case of residential care or flexible care) be classified according to the level of care that is required.
See Part 2.3 of the Aged Care Act – CLASSIFICATION OF CARE RECIPIENTS
Care recipients approved under Part 2.3 for residential care, or for some kinds of flexible care, are classified according to the level of care they need. The classifications may affect the amounts of *residential care subsidy or *flexible care subsidy payable to approved providers for providing care.
1 March 2021 onwards
A new Part 2.4A will be inserted into the Aged Care Act.
- Part 2.4A – CLASSIFICATION OF CARE RECIPIENTS ON SECRETARY’S INITIATIVE
On the Secretary’s initiative, the Secretary may classify care recipients approved under Part 2.3 for residential care, or for some kinds of flexible care, according to the level of care they need. The effect of a classification under this Part is limited (see section 29F‑1).
This will enable the Secretary to assess and classify the relative care needs of care recipients, using the Australian National Aged Care Classification tool.
The existing mandatory Part 2.4 procedure for classification of care recipients, and its role in determining residential care subsidy and the fees providers may charge care recipients, will continue to operate.
Classifications under Part 2.4A will be for a limited purpose only. Classification levels will not affect subsidies, or any amounts charged to care recipient for the provision of care and services: s 29F-1(3).
As with Part 2.4, new Part 2.4A will not apply to home care recipients.
About the Australian National Aged Care Classification tool
The Australian Government is reportedly treating this as a ‘shadow assessment’ period, with the Australian National Aged Care Classification tool to be applied to the entire residential aged care population from 1 March 2021. This means all existing and new aged care residents will be assigned an ‘AN-ACC’ class; but to reiterate, there will be no effect on how subsidies for providers are calculated.
A final decision has not been made on whether to implement the Australian National Aged Care Classification. The assessment period is part of a broader funding reform process. Should it go ahead, funding using the Australian National Aged Care Classification model will commence from 2022.
The Government says is aiming to:
- make funding for residential aged care fairer and more stable;
- improve the assessment process for funding so it is more accurate and nationally consistent;
- remove the paperwork burden on aged care providers and their workers so they can spend more time on providing safe and effective care;
- boost innovation in residential aged care, while fostering a culture of reablement and excellence.
Click here to read about the Residential Aged Care Funding Reform or here to view an infographic.
