Introductory Info
Date introduced: 16 October 2019
House: Senate
Portfolio: Health
Commencement: Sections 1 to 3 on Royal Assent; Schedules 1 to 4 on the earlier of proclamation or six months after Royal Assent.
Purpose of
the Bill
The main purpose of the Aged Care Legislation Amendment
(New Commissioner Functions) Bill 2019 (the Bill) is to amend the Aged Care Act 1997
(the Act) and the Aged
Care Quality and Safety Commission Act 2018 (the Commission
Ac) to transfer the:
- aged
care provider approval and
- compliance
and sanctioning
functions of the Secretary of the Department of Health
(the Secretary) to the Aged Care Quality and Safety Commissioner (the
Commissioner).
The Bill also makes consequential amendments to a number
of other Acts.[1]
Background
Aged care services support older people who can no longer
live without assistance in their own homes. Care is provided in
people’s homes, in the community and in residential aged care facilities
(nursing homes) by not-for-profit, for-profit and government providers. The Australian
Government is the primary funder and regulator of the aged care system.[2]
Aged care quality regulation
Regulation of aged care service quality is shared between
the Department of Health (the Department) and the Aged Care Quality and Safety
Commission (the Commission). The Department approves providers to provide care
under the Act. If providers fail to comply with their responsibilities under
the Act, the Secretary can issue a notice of non-compliance or impose
sanctions.
The Commission is an independent statutory
agency established under the Commission Act. It is responsible for
quality assessment and monitoring of aged care providers against the Aged Care
Quality Standards, complaints handling, consumer engagement and provider
education.[3]
Carnell-Paterson Review
Concerns about the quality and regulation of
aged care services have been growing in recent years. Serious failures of care
identified at the Oakden Older Persons Mental Health Service[4] in Adelaide led the
Australian Government to commission an independent Review of National Aged
Care Quality Regulatory Processes (the Carnell-Paterson Review). The review
examined why longstanding problems at Oakden were not adequately detected by
the national quality regulation system.[5]
The review report was released in October
2017. It made ten recommendations including:
- centralised accreditation, compliance and complaints handling through
the establishment of the Commission
- quality indicators and a star-rating system for residential care
facilities
- support for consumer rights
- a serious incident response scheme for aged care
- limiting restrictive practices (such as using physical restraints or
medicines to control behaviour) in residential aged care
- removing the advance notice that residential providers received when
they were to be visited and assessed against aged care standards and
- enhanced complaints handling.[6]
The Department has recently indicated that
all recommendations have either been implemented or are in progress.[7]
The key recommendation of the review was the
establishment of the Commission to centralise accreditation, compliance and
complaints handling functions in one body. The review found that the aged care
regulatory system was fragmented, with responsibilities split between the
Department, the then Australian Aged Care Quality Agency (the Quality Agency)
and the then Aged Care Complaints Commissioner (the Complaints Commissioner).[8]
The review found this fragmentation led to
confusion for stakeholders, including consumers and providers:
Despite efforts to ensure clarity in roles among the
regulators through their memorandums of understanding, providers express
confusion over the delineation of roles between the Quality Agency and the
Department in managing compliance with the Standards. There is overlap between
the requirement, implemented by the Department, for approved providers to
deliver adequate care, and the requirement, implemented by the Quality Agency,
for providers to meet the Accreditation Standards.[9]
The review noted that ‘best-practice governance
arrangements should separate the policy advice agency from the independent
regulator’.[10]
The review recommended centralising aged care quality functions under a single
independent Commission in order to:
- Provide more
effective regulation of quality and safety
- Provide greater clarity around regulatory roles and
responsibilities
- Improve real-time intelligence sharing
- Facilitate better information sharing with consumers
- Enhance the role for consumers in guiding regulatory
processes. [11]
Establishment of the Commission
Then Minister for Aged Care Ken Wyatt
announced in April 2018 that the Government would implement the above
recommendation and establish the Commission. He stated that the new Commission
would be ‘a responsive, one-stop shop to prevent failures, highlight quality
concerns and have them quickly rectified’.[12]
The recommendation is being implemented in
two stages. In the first stage, the Commission was established by the Commission
Act from 1 January 2019, combining the functions of the Quality Agency and
the Complaints Commissioner.[13]
The Commission Act states that it is ‘Parliament’s intention to further the
object of this Act by conferring, through future legislative change, additional
functions on the Commissioner relating to matters such as the approval of
providers of aged care and compliance’.[14]
The current Bill implements this second
stage of the reform. It transfers aged care approval and compliance functions
from the Department to the Commissioner. The Government’s intention is for this
transfer to occur on 1 January 2020.[15]
According to the Department, the Minister has agreed to a transition approach
to moving compliance staff and process from the Department to the Commission,
and a transition working group has been established.[16]
Senate
Standing Committee on Community Affairs inquiry
The Senate Standing Committee on Community Affairs (the
Community Affairs Committee) began inquiring into the ‘Effectiveness of the
Aged Care Quality Assessment and accreditation framework for protecting
residents from abuse and poor practices, and ensuring proper clinical and
medical care standards are maintained and practised’ in June 2017.[17]
The Community Affairs Committee released its final report
in April 2019. The primary focus of the report was on the provision and
regulation of clinical care within residential aged care. The Committee
recommended a number of areas where the Commission and the Department should
work together with other stakeholders to improve the regulation of clinical
care in residential aged care, including but not limited to:
- clarifying
responsibilities regarding duty of care
- continuous
improvement in levels of quality and safety in aged care
- the
development of an industry model of care
- the
development of benchmarks for staffing levels and skills mix, including the
requirement to have a Registered Nurse on duty at all times
- the
regulation of medications in aged care
- improving
palliative care
- increasing
the focus on wellness and reablement and
- achieving
better integration of aged care, primary health care and hospital care.[18]
Royal Commission into Aged Care Quality and Safety
The Royal Commission into Aged Care Quality
and Safety (the Royal Commission) released its Interim Report on 31 October
2019. The text of the report was finalised in September 2019 (prior to the
introduction of the Bill).[19]
Apart from a footnote noting that ‘[f]rom 1 January 2020, subject to the
passage of legislation, the Aged Care Quality and Safety Commission will also
take on the provider approval and compliance functions of the Department of Health’,
the Interim Report does not mention the Bill.[20]
The Royal Commission notes that ‘[m]ost of the Royal Commission’s work on
quality and safety considerations will be in the final report’, which is due in
November 2020.[21]
The Interim Report was critical of the aged
care system as a whole, finding that:
... the aged care system fails to meet the needs
of its older, vulnerable, citizens. It does not deliver uniformly safe and
quality care, is unkind and uncaring towards older people and, in too many
instances, it neglects them.[22]
Specifically in terms of quality and safety,
the Royal Commission found that the current regulatory system does not ensure
an adequate standard of care:
We have heard evidence which suggests that the
regulatory regime that is intended to ensure safety and quality of services is
unfit for purpose and does not adequately deter poor practices. Indeed, it
often fails to detect them. When it does so, remedial action is frequently
ineffective. The regulatory regime appears to do little to encourage better practice
beyond a minimum standard.[23]
The Royal Commission concluded that ‘a
fundamental overhaul of the design, objectives, regulation and funding of aged
care in Australia is required’. This will be addressed in the Final Report.[24]
Committee
consideration
Senate
Standing Committee for Selection of Bills
At the time of writing, the Senate Standing Committee for
Selection of Bills had deferred consideration of whether to refer the Bill to a
committee for inquiry.[25]
Senate
Standing Committee for the Scrutiny of Bills
At the time of writing, the Senate Standing
Committee for the Scrutiny of Bills had not yet considered the Bill.
Policy
position of non-government parties/independents
At the time of writing, no comments by non-government
parties or independents specifically on the Bill had been identified.
The Australian Greens (the Greens) and the Australian
Labor Party (Labor) expressed broad support in 2018 for the establishment of
the Commission.[26]
Labor also indicated its support for the recommendations of the Carnell-Paterson
Review.[27]
The Greens appear to support the transfer of sanctioning
functions to the Commissioner. In their additional comments in the 2018 Senate
Community Affairs Legislation Committee report examining the Bills to establish
the Commission, the Greens noted that they would ‘continue to ask questions of
the Government regarding sanctions to ensure that they too are transferred to
the Commission in due course’.[28]
Position of
major interest groups
At the time of writing, no comments by key interest groups
specifically on the Bill had been identified.
The establishment of the Commission was supported by a
majority of stakeholders, including COTA Australia (the consumer peak body for
older Australians), and aged care provider peak body Leading Age Services
Australia (LASA). However, the Combined Pensioners and Superannuants
Association of NSW (CPSA) claimed that the establishment of the Commission
would not address the underlying issues in aged care quality.[29]
In terms of provisions contained in the current Bill, COTA
Australia appears to support the transfer of approval and compliance (including
sanctions) functions to the Commissioner. It also appears that COTA would like
to see the approval function extended to providers of Commonwealth-funded aged
care services which are grant-funded outside of the Act.[30]
Aged and Community Services Australia (ACSA), the not-for-profit aged care
provider peak body, supports the transfer of approval and compliance functions
to the Commissioner from 1 January 2020.[31]
The Australian Association of Gerontology, the peak body for professionals
working in ageing research, policy and practice, supports sanctioning powers
residing with the Commissioner.[32]
The Older Persons Advocacy Network (OPAN), which provides advocacy services for
people in aged care, is ‘hopeful’ that combining aged care complaints, quality
and regulation functions under the Commissioner will ‘ensure that the three
functions will work together more cohesively’.[33]
OPAN also supports reportable assaults being notified to the Commissioner,
while noting that it hopes the reportable assaults scheme will be replaced by a
serious incident response scheme.[34]
Financial
implications
The Bill has no financial impact.[35]
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the
Bill’s compatibility with the human rights and freedoms recognised or declared
in the international instruments listed in section 3 of that Act. The
Government considers that the Bill is compatible with the right to an adequate
standard of living and the right to health. In triggering the Regulatory Powers
(Standard Provisions) Act 2014 (the Regulatory Powers Act), the
Bill protects against arbitrary abuses of monitoring and investigation powers,
which the Government considers consistent with the right to privacy and
reputation. The Regulatory Powers Act also ensures that privilege
against self-incrimination and legal professional privilege are not abrogated
by the Bill, which the Government considers consistent with the right to a fair
and public hearing.[36]
Parliamentary
Joint Committee on Human Rights
At the time of writing, the Parliamentary
Joint Committee on Human Rights had not yet considered the Bill.
Key issues
and provisions
Schedule 1 –
Approval of providers of aged care
Currently, the Secretary (or delegate) approves providers to provide aged care under the Act.[37]
A provider must be an approved provider in order to receive Australian
Government subsidies for providing aged care.[38]
The Bill transfers the function of approving
providers from the Secretary to the Commissioner.
Division 8 of the Act sets out the process
by which the Secretary approves a person as a provider of aged care. Item 18
of Schedule 1 repeals this division.
Approved providers must notify the Secretary of changes of
circumstances that materially affect their suitability to provide aged care.[39]
Items 19 to 23 of Schedule 1 amend the Act to provide that
approved providers must notify the Commissioner instead.
The Secretary can require an approved provider to give
information relevant to their suitability to provide aged care at any time.[40]
Items 24 to 26 of Schedule 1 transfer this power to the
Commissioner instead.
The Secretary can also require an approved provider to
give information about any lump sums (such as an accommodation bond or deposit)
paid to the provider by aged care residents, and about the provider’s ability
to refund such lump sum payments when required (for example when the resident
leaves the aged care home or dies).[41]
Items 27 to 34 of Schedule 1 confer this power on the
Commissioner as well (but do not remove it from the Secretary).
Division 10 of the Act sets out the circumstances under
which an approval as a provider of aged care ceases to have effect (including
when the Secretary revokes the approval). Item 36 of Schedule 1
repeals this division.
The functions of the Commissioner are set out in section
16 of the Commission Act. Item 62 of Schedule 1 adds new
functions relating to the approval of providers of aged care.
Item 64 of Schedule 1 inserts proposed
Part 7A into the Commission Act. Proposed Part 7A details the
process by which the Commissioner can approve providers of aged care, as well
as the process for the cessation or revocation of an approval. These functions
are broadly similar to those currently carried out by the Secretary under
Divisions 8 and 10 of the Act. Where there is a significant difference between
the current approval functions of the Secretary and the proposed approval
functions of the Commissioner, this is highlighted below.
Proposed Division 2 of Part 7A sets out the
process for a person to become an approved provider:
- A
person may apply, in writing, to the Commissioner to be approved as a provider
of aged care (proposed section 63B).
- The
Commissioner may request further information regarding the application (proposed
section 63C).
- The
Commissioner must decide whether to approve the person as a provider of aged
care, taking into account a number of matters including those related to their
suitability to provide aged care (proposed section 63D). Under the
current Act, one of the matters is the person’s conduct and compliance with
their responsibilities as provider of aged care.[42]
Proposed paragraph 63D(3)(e) broadens this to include conduct and
compliance as a provider of aged care or other relevant forms of care (possibly
such as disability care).
- The
Commissioner must notify the person that they have, or have not, been approved
as a provider of aged care (proposed section 63E).
Proposed Division 4 of Part 7A sets out the
processes by which an approval may cease or be revoked:
- An
approved provider may apply in writing to request the Commissioner to revoke
their approval (proposed section 63H). This is a new process which is not
specified in the current Act. The Commissioner must revoke the approval if the
provider no longer has an allocation of residential or flexible care places,
and if appropriate arrangements have been made to ensure any home care
recipients will continue to receive care from another provider. The
Commissioner must give the provider written notice of their decision to, or not
to, revoke the approval.
- The
Commissioner must revoke an approval if the provider ceases to be a
corporation, ceases to be suitable to provide care, or provided false or
misleading information in their application for approval (proposed section
63J).
- The
Commissioner must give notice to the provider that they are considering
revoking an approval under proposed section 63J, and invite the provider to
make submissions about the matter (proposed section 63K).
- If
the Commissioner decides to revoke an approval under proposed section 63J, they
must give notice that they are revoking the approval. They may also give notice
that they are placing limits on the approval prior to its revocation. The
Commissioner may not give either notice unless they are satisfied that alternative
arrangements have been made for care recipients (proposed section 63L).
Schedule 2—Responsibilities
of approved providers etc.
Reportable
assaults
Currently approved providers of residential care must
report suspicions or allegations of assaults on residents to the police and the
Secretary.[43]
Item 22 in Schedule 2 changes this to the police and the
Commissioner.
Sanctioning
powers
Approved providers have responsibilities relating
to the quality of care they provide, the rights of care recipients and
governance under Chapter 4 of the Act. If a provider fails to comply
with these responsibilities, the Secretary can impose sanctions on the provider
under Part 4.4 of the Act.
Sanctions that can be imposed include:
- revoking
or suspending the provider’s approval, or restricting it to only the services
they are currently conducting
- restricting
subsidy payments (for example, subsidies could be restricted to current clients
only)
- revoking
or suspending the allocation of places to the provider, varying the conditions
of the allocation, or prohibiting the allocation of further places to the
provider
- revoking,
suspending, or prohibiting the grant of extra service status to a provider’s
residential care service[44]
- prohibiting
the charging of lump sum payments such as accommodation deposits or bonds,
requiring the repayment of any lump sums that were overpaid or are due to be
refunded, and restricting the use of any lump sum payments
- requiring
repayment of grants and
- such
other sanctions as are specified in the Sanctions Principles.[45]
The Secretary must follow the following steps to impose
sanctions (unless there is an immediate and severe risk to the safety, health
or wellbeing of care recipients, in which case the Secretary can proceed
directly to the last step):
1. give the provider a notice of non-compliance
2. give the provider either a notice of intention to impose sanctions, a
notice to remedy the non-compliance, or both and
3. give the provider notice of the Secretary’s decision on whether to
impose sanctions.[46]
The Bill transfers these sanctioning functions from the
Secretary to the Commissioner. It also makes some minor modifications to the
functions. In particular, the Bill streamlines the procedures that must be
followed before sanctions can be imposed, and provides greater flexibility to
pursue remedial action to address non-compliance. These modifications are
outlined below.[47]
Item 26 of Schedule 2 repeals Part 4.4 of
the Act, which sets out the sanctioning functions of the Secretary.
Item 31 of Schedule 2 removes the Sanctions Principles
from the list of Principles that may be made by the Minister under the Act.
Item 47 of Schedule 2 amends the Commission
Act to add new a function for the Commissioner relating to imposing
sanctions. It also adds the function of ensuring compliance with the aged care
responsibilities of approved providers, the provisions of the Commission Act
and the provisions of the Act. This latter function is outlined in the section
of this Digest titled ‘Compliance and enforcement powers’.
Item 52 of Schedule 2 inserts proposed
Part 7B into the Commission Act. Proposed Part 7B details the
processes for the Commissioner to impose and lift sanctions.
Proposed Division 2 of Part 7B sets out the
process for the imposition of sanctions by the Commissioner:
- The
Commissioner may impose sanctions for non-compliance with aged care
responsibilities. The Commissioner must consider certain matters when deciding
whether to impose sanctions. If the Commissioner decides to impose sanctions,
the provider must be given written notice of the decision (proposed section
63N).
- The
Commissioner may impose different types of sanctions, as listed in proposed
section 63R. The list of possible sanctions is the same as those currently
available to the Secretary (described above).[48]
- Unless
there is an immediate and severe risk to the safety, health and wellbeing of care
recipients, the Commissioner must notify an approved provider of their
intention to impose sanctions. The notice must invite the provider to make
submissions in relation to the matter (proposed section 63S). If the
provider’s submissions are satisfactory, the Commissioner may require the
provider to give an undertaking setting out the action the provider will take
to remedy the non-compliance (proposed section 63T). Failure to give the
required undertaking, or to comply with the undertaking, can lead to the
imposition of sanctions under proposed section 63N. This process is more
streamlined than the current process for the Secretary to impose sanctions, as
described above.
- If
the Commissioner is considering revoking the provider’s approval (defined as a revocation
sanction), the Commissioner may give the provider written notice to do
any one or more things specified in the notice. The kinds of things that the
Commissioner may require are listed, and include providing staff training,
providing security for debts owed to the Commonwealth, appointing an adviser to
assist with compliance with the aged care responsibilities or transferring
allocated places to another approved provider (proposed section 63U). Proposed
section 63U appears to give the Commissioner greater flexibility to pursue
remedial actions in this situation than the current section 66-2 of the Act.
Proposed Division 4 of Part 7B sets out the
processes for the Commissioner to lift sanctions. These are similar to the
current processes for the Secretary to lift sanctions.[49]
Compliance
and enforcement powers
Part 6.4 of the Act sets out the powers of authorised
officers (officers of the Department appointed by the Secretary). These
include the power to:
- enter
premises with consent or under warrant and exercise monitoring powers (such as
searching the premises, taking photographs and inspecting and copying
documents) and
- enter
premises under warrant to exercise investigation powers relating to the
commission of an offence under the Act.
Part 6.4 also provides for the Secretary to require people
to attend before an authorised officer to answer questions and produce
documents.
Consistent with the transfer of approval and sanctioning
functions from the Secretary to the Commissioner, the Bill transfers the
compliance and enforcement powers relating to these functions to the
Commission. Powers relating to other functions remain with the Department, but
are redrafted to trigger the Regulatory Powers Act where relevant. The Regulatory
Powers Act provides standard provisions intended as ‘an accepted baseline
of powers required for an effective monitoring, investigation or enforcement
regulatory regime, whilst providing adequate safeguards and protecting
important common law privileges’.[50]
The Bill also confers new powers for authorised officers of the Department to
monitor and investigate providers who repeatedly make false or incorrect
funding claims for residents.
Key provisions are briefly outlined below. For a detailed
table showing which powers remain in the Act, which powers move to the Commission
Act and which powers are new, see the Explanatory Memorandum.[51]
Item 29 of Schedule 2 repeals Part 6.4 of
the Act and substitutes proposed Part 6.4 providing compliance and
enforcement powers:
- An
authorised officer may enter premises with consent and exercise search powers,
ask questions and seek production of documents for the purposes of the
Secretary making a decision on an application under the Act, or determining
whether grant conditions have been complied with (proposed Division 91).
- Monitoring
powers (such as powers of entry and inspection) under Part 2 of the Regulatory
Powers Act are triggered, with minor modifications, to allow monitoring of
the appraisal by residential providers of the level of care needed by each
resident (which in turn affects the funding received by the provider) and to
allow monitoring of information relating to subsidies (proposed sections
92-1 and 92-2).
- Proposed
subsection 92-1(3) triggers monitoring powers under Part 2 of the Regulatory
Powers Act with respect to the civil penalty provisions in Division 29A of
the Act. Division 29A provides civil penalties for residential providers who
repeatedly make false or incorrect appraisals of the level of care needed by
each resident. This is a new power.
- Investigation
powers (such as powers of entry, search and seizure) under Part 3 of the Regulatory
Powers Act are triggered, with minor modifications, to allow investigation
of civil penalty provisions under the Act, such as those in Division 29A
described above (proposed sections 92–3 and 92-4). This is a new
power.
- Notice
powers allow the Secretary to require a person to attend before an authorised
officer to answer questions and produce documents relating to applications made
under the Act, appraisals of the level of care needed by each resident, claims
for subsidy and compliance with grant conditions (proposed Division 93).
- The
Secretary may appoint an APS employee in the Department as an authorised
officer for the purposes of this Part of the Act, but only if the Secretary is
satisfied that the employee has suitable training or experience to properly perform
the role (proposed section 94-2).
As noted above, the Bill transfers compliance and
enforcement powers relating to approval and sanctioning functions to the Commission
Act.
Item 57 of Schedule 2 inserts proposed
section 64A into the Commission Act. This section provides that an
authorised officer (appointed by the Commissioner) may enter premises with
consent and exercise search powers where necessary to assist the Commissioner
to decide whether or not to approve an aged care provider.
Item 85 of Schedule 2 inserts proposed
Part 8A, dealing with the enforcement of responsibilities of approved
providers, into the Commission Act:
- Monitoring
powers under Part 2 of the Regulatory Powers Act are triggered, with
minor modifications, to allow monitoring of approved providers’ compliance with
their responsibilities under Chapter 4 of the Act (proposed sections 74B
and 74C).[52]
- Investigation
powers under Part 3 of the Regulatory Powers Act are triggered, with
minor modifications, to allow investigation of offences against the Act,
offences against the Commission Act or offences against the Crimes Act 1914
or the Criminal
Code Act 1995 that relate to aged care (proposed sections 74D
and 74E).
- The
Commissioner may require a person to attend before an authorised officer to
answer questions and produce documents relating to whether an approved provider
is complying with their responsibilities (proposed section 74F).
The Commissioner currently has the power to appoint
authorised complaints officers.[53]
Item 78 of Schedule 2 repeals this power.
Item 87 of Schedule 2 inserts proposed section
75A into the Commission Act. This section provides that the
Commissioner may appoint a person who is a member of the staff of the
Commission as an authorised officer for the purposes of the Commission Act,
but only if the Commissioner is satisfied that the staff member has suitable
training or experience to properly perform the role.
A number of amendments in the Bill replace all references
to authorised complaints officers with references to authorised officers. As
explained in the Explanatory Memorandum, the effect is to subsume authorised
complaints officers into the broader category of authorised officers who can
exercise regulatory powers.[54]
Schedule 3—Reconsideration and review of decisions
Consistent with the transfer of approval, revocation and
sanctioning decisions from the Secretary to the Commissioner, the Bill also transfers
provisions for the review of these decisions from the Act to the Commission
Act.
Item 1 of Schedule 3 removes decisions
regarding approvals and sanctions from the list of reviewable decisions under
the Act.[55]
Item 5 of Schedule 3 adds a new function for
the Commissioner of reconsidering and reviewing certain decisions made under
the Commission Act.
Item 6 of Schedule 3 inserts proposed
Part 8B into the Commission Act, dealing with the reconsideration
and review of certain decisions made under the Commission Act.
Proposed section 74J provides that the following
decisions by the Commissioner are reviewable decisions:
- a
decision not to approve a provider of aged care
- a
decision not to revoke an approval when a revocation is requested by the
approved provider
- a
decision to revoke a provider’s approval if the provider ceases to be a corporation,
ceases to be suitable to provide care, or provided false or misleading
information in their application
- a
decision to impose a sanction and
- a
decision not to lift a sanction.
Proposed section 74K provides that an affected
person (as specified in proposed section 74J) may request reconsideration
of a reviewable decision.
Proposed section 74L provides that, upon such a
request, the Commissioner must either personally reconsider the decision, or
cause the decision to be reconsidered by a delegate who was not involved in the
original decision. The internal decision review must either affirm the
decision, vary the decision, or substitute a new decision.
Proposed section 74M provides that the
Commissioner, or a delegate who was not involved in the original decision, may
also reconsider a decision on their own initiative where there is sufficient
reason to do so.
Proposed section 74N provides that an application
may be made to the Administrative Appeals Tribunal for review of a reconsidered
decision.
Other provisions
The Bill makes consequential amendments to the Aged Care
(Accommodation Payment Security) Act 2006, the Aged Care
(Accommodation Payment Security) Levy Act 2006, the Aged Care
(Transitional Provisions) Act 1997, the A New Tax System
(Goods and Services Tax) Act 1999, the Healthcare
Identifiers Act 2010, the Social Security Act
1991 and the Veterans’
Entitlements Act 1986. These consequential amendments are minor and are
adequately described in the Explanatory Memorandum.[56]
Schedule 4 of the Bill sets out transitional,
application, saving and other provisions. These are adequately described in the
Explanatory Memorandum.[57]
Concluding comments
A key recommendation of the Carnell-Paterson Review was to
establish the Commission to centralise aged care accreditation,
compliance and complaints handling functions in one body. This
recommendation is being implemented in two stages, with this Bill being the
second stage. The Bill transfers aged care provider approval and compliance and
sanctioning functions from the Secretary to the Commissioner. While there has
been little commentary specifically on the Bill, its provisions generally
appear to be supported by stakeholders and non-government parties. The Royal
Commission has flagged its intent to recommend a fundamental overhaul of the
aged care system, including regulation. It is not clear whether this will have
any impact on the passage of the Bill.