John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

AGED CARE AMENDMENT (2008 MEASURES NO. 1) BILL 2008

I am very pleased today to introduce the Aged Care Amendment (2008 Measures No.1) Bill 2008.

This Bill implements the changes to the Aged Care Act 1997 accommodation subsidies and resident accommodation fees that were announced in the 2007 Federal Budget.

The Bill amends the Aged Care Act to simplify the fees and charges paid by residents as well as the accommodation supplements paid by the Government for residents who cannot fully meet their own accommodation costs.

Higher levels of accommodation payments will be phased in to support the provision of quality accommodation.

All care recipients, regardless of whether they are pensioners or self-funded retirees will potentially be eligible for the new government accommodation supplement.  The eligibility of the care recipient for the accommodation supplement will depend on the person’s assets.  Unlike under the current arrangements, new self-funded retiree residents with few assets will be eligible for Government assistance.

The Bill also amends provisions governing to income tested fees.  Currently, self-funded retirees pay higher income-tested fees because nearly all of their income is counted under the income test.  However, pension income is currently not counted under the income test.  This results in self-funded retirees paying more than part-pensioners of similar means.  The Bill creates a new income test that treats all people in the same way and all income the same.

There are three important safeguards that will ensure that residents are protected and that the changes do not adversely affect existing residents.

• First, a resident’s accommodation charge will continue to be determined based on assessable assets at the time of entry to care and remain fixed until they are discharged;
• Second, the Government will continue to place a cap on accommodation charges; and
• Third, residents with unrealisable assets will continue to be able to apply for hardship assistance if they cannot afford to pay their charges.

The changes also

• broaden eligibility for community care grants for providers of Community Aged Care Packages and extend eligibility to Extended Aged Care at Home providers;
• extend the operation of aged care legislation to the Territory of Christmas Island and the Territory of Cocos (Keeling) Islands;
• and make technical amendments to improve consistency and clarity in the Aged Care Act.

Subject to the passage of the bill through Parliament, it is proposed that the new arrangements will take effect from 20 March 2008.  In addition to the amendments required to the Act, further detail will be outlined in amendments to the Aged Care Principles as well as in other delegated legislation.   These changes align with the implementation of the Aged Care Funding Instrument, which determines the level of funding for care based on the assessed needs of care recipients.

As we have previously indicated, the Government is committed to review the implementation of the Aged Care Funding Instrument, including the extent to which it achieves its stated purpose, 18 months after implementation.  We have also committed to review the current aged care planning ratios to take better account of demographic changes and changing patterns of use of aged care services.

APPROPRIATION (DROUGHT AND EQUINE INFLUENZA ASSISTANCE) BILL (No. 1) 2007-2008

There are two appropriation Bills providing urgent funding to cover new and expanded assistance measures for the drought and the outbreak of equine influenza announced last year.  The appropriations contained in these Bills meet the commitments announced in the 2007-08 Mid-Year Economic and Fiscal Outlook and Pre-Election Economic and Fiscal Outlook 2007 documents and agreements reached during the election.  I shall introduce Appropriation (Drought and Equine Influenza Assistance) Bill (No. 2) shortly.

The measures provided for in Appropriation (Drought and Equine Influenza Assistance) Bill (No. 1) include additional Exceptional Circumstances drought funding for farmers and farm-dependent small businesses and emergency assistance to the horse industry as a result of the equine influenza outbreak.

These Bills require immediate passage as the administered appropriations provided to the Department of Agriculture, Fisheries and Forestry have been exhausted. At the current rate of expenditure, the Department will run out of appropriations by the end of February 2008.

Appropriation (Drought and Equine Influenza Assistance) Bill (No. 1) requests additional funding of $506.9 million for the Department of Agriculture, Fisheries and Forestry to meet increased expenses during the 2007-08 financial year. Of this money a total of $251.2 million is provided to cover the new and expanded drought relief assistance and $255.7 million is provided for financial aid to the horse industry as a result of the equine influenza outbreak.

The drought and equine influenza measures were announced by the previous government in September and October 2007. The equine influenza measures were extended by the Government earlier this month. The measures were a response to the increasing severity of the drought and to assist those suffering financial hardship as a result of the equine influenza outbreak that occurred in August last year.

Funding for the measures was not included in the May 2007 Budget as the decisions on the assistance were only announced in September and October 2007.  The Department of Agriculture, Fisheries and Forestry has been meeting all payments from its existing appropriations, but is now in urgent need of additional funding to be able to continue delivering assistance.

I commend the bill to the Senate.

APPROPRIATION (DROUGHT AND EQUINE INFLUENZA ASSISTANCE) BILL (No. 2) 2007-2008

Appropriation (Drought and Equine Influenza Assistance) Bill (No. 2) 2007-2008 requests additional funding for the Department of Agriculture, Fisheries and Forestry to make payments to the States, Territories and local government authorities during the 2007-08 financial year in respect of drought relief assistance and to reimburse them for costs associated with the national response to the eradication of equine influenza.  While States, the Northern Territory and Australian Capital Territory are being reimbursed for the cost of the national response to equine influenza, these costs will be recovered from the horse industry consistent with the provisions of the Emergency Animal Disease Response Agreement.  Recovery from the horse industry will be addressed in separate legislation.

The total appropriation sought in this bill is $545.1 million, comprising:

• $440.1 million to support primary producers in regions that have been declared eligible for Exceptional Circumstances assistance;
• $7.8 million to support small businesses with up to 100 employees that are dependent on business from farmers in regions that have been declared eligible for Exceptional Circumstances assistance; and
• $97.2 million to reimburse the States, the Northern Territory and Australian Capital Territory for costs associated with the national response to eradicating equine influenza.  Most of this funding - $86.4 million - will be recovered from the horse industry.

This appropriation bill, and the urgency with which we are treating it, demonstrates the Government’s commitment to assisting those communities affected by drought and to the eradication of equine influenza. 

I commend the bill to the Senate.

Ordered that the resumption of debate be made an order of the day for a later hour.

Ordered that the Aged Care Amendment (2008 Measures No. 1) Bill 2008 be listed on the Notice Paper as a separate order of the day.