Senate debates

Tuesday, 28 October 2014

Bills

Aged Care and Other Legislation Amendment Bill 2014, Health and Other Services (Compensation) Care Charges (Amendment) Bill 2014; Second Reading

6:02 pm

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | | Hansard source

I move:

That this bill be now read a second time.

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

Leave granted.

The speeches read as follows—

AGED CARE AND OTHER LEGISLATION AMENDMENT BILL 2014

This Bill introduces several minor amendments to aged care and health-related legislation consequential to one 2014 Budget measure and to support the recent extensive reforms to the aged care system in Australia.

Reprioritising the Aged Care Workforce Supplement

The Coalition committed during the 2013 election campaign to deliver better services for older Australians and greater certainty for providers.

The 2014 Budget included several important aged care initiatives to provide better choices and improved access to services that will allow older Australians to continue to live active and healthy lives.

Under one key Budget measure, Reprioritising the Aged Care Workforce Supplement, the Government is honouring its commitment to invest in Australia’s aged care workforce by putting back into the general pool of aged care funding the substantial amounts previously allocated to the workforce compact: $1.1 billion between 2013-14 and 2016-17, with a further $0.4 billion in 2017-18.

This initiative, under which residential care, home care and flexible care providers of aged care services receive an increase in basic subsidy, was implemented separately from 1 July 2014, through two legislative instruments addressing the subsidy arrangements.

This Bill makes consequential amendments to the Aged Care Act 1997 to reflect the implementation of the Budget measure. Specifically, this Bill removes the workforce supplement from the list of primary supplements that may be provided by the Subsidy Principles under the Act.

My Aged Care

A second measure in the Bill amends the Healthcare Identifiers Act 2010 to support the implementation of stage 2 of the Aged Care Gateway, which is a centralised online information portal known as My Aged Care.

Stage 1 of My Aged Care was introduced from1 July 2013. It currently provides information on aged care, support for consumers in finding Commonwealth-funded aged care services in their local area, and online fee estimators for home care and residential care pricing.

Stage 2 of My Aged Care will operate from early 2015, and is a key component of the improvements to Australia’s aged care system. My Aged Care will be expanded to include:

•   a registration process to create a centralised client record;

•   a nationally consistent assessment approach;

•   telephone screening and face-to-face assessments to determine care needs;

•   enhanced web services; and

•   a service matching and referral capability.

A client’s identity created during the new registration process will be authenticated, using Medicare’s healthcare identifier for the individual. This approach will protect both client privacy and the integrity of Commonwealth systems.

The amendments in this Bill will allow the collection, use and disclosure of the relevant data for this limited purpose.

Recovery of past home care costs for a compensation recipient

This Bill, together with the Health and Other Services (Compensation) Care Charges (Amendment) Bill 2014, amend the Health and Other Services (Compensation) Act 1995 and the Health and Other Services (Compensation) Care Charges Act 1995 to overcome a current anomaly in the legislation relating to the recovery of past care costs where the care recipient receives a compensation payment.

Recovery in these circumstances is currently possible in relation to the past costs of residential care, but not home care. This anomaly is removed by bringing the capacity to recover past care costs for home care into line with the existing arrangements for residential care.

The amendments remove the current inequity between the two types of care, overcome the potential for delayed entry into more appropriate residential care until compensation payments are settled, and minimise financial loss to the Commonwealth.

Other amendments

Lastly, this Bill makes minor clarifying and technical amendments to aged care and health-related legislation, consistent with intended policy, arising from the recent changes to aged care.

HEALTH AND OTHER SERVICES (COMPENSATION) CARE CHARGES (AMENDMENT) BILL 2014

This Bill, together with the Aged Care and Other Legislation Amendment Bill 2014, makes minor amendments to the Health and Other Services (Compensation) Act 1995 and the Health and Other Services (Compensation) Care Charges Act 1995.

Together, the amendments will overcome a current anomaly in the legislation relating to the recovery of past care costs where the care recipient receives a compensation payment.

Recovery in these circumstances is currently possible in relation to the past costs of residential care, but not home care. This anomaly is removed by bringing the capacity to recover past care costs for home care into line with the existing arrangements for residential care.

The amendments remove the current inequity between the two types of care, overcome the potential for delayed entry into more appropriate residential care until compensation payments are settled, and minimise financial loss to the Commonwealth.

Of the small package of amendments needed to achieve this measure, this Bill introduces those that expand the existing charges on compensation for the purpose outlined here. Amendments made by this Bill to sections 7 and 8 of the Health and Other Services (Compensation) Care Charges Act 1995 have been introduced separately to the Aged Care and Other Legislation Amendment Bill 2014 to comply with section 55 of the Constitution.

Debate adjourned.