Fact sheet - Subcontracting

This fact sheet provides Commonwealth HACC service providers with information on subcontracting.

Page last updated: 14 October 2012

PDF printable version of Subcontracting (PDF 123 KB)

Subcontracting occurs when a service provider engages another entity to deliver the activities the service provider is required to deliver under the Aged Care Funding Agreement.

For the purposes of the Commonwealth HACC Program, the following situations are not considered subcontracting:

  • Engaging an entity on an ad hoc basis to perform a specific task.
  • Engaging an entity for purposes other than delivering Commonwealth HACC services.
Service providers only need to meet the Commonwealth’s requirements for subcontractors where subcontracting is occurring, this includes notifying or seeking Department of Health and Ageing's (DoHA’s) consent to subcontractors.

Examples

The following situations provide some examples of what may not be considered subcontracting:
  • Service Provider A is contracted to deliver Service Group 5. A client contacts Service Provider A to advise they have a blocked drain that requires urgent attention. Unable to use their regular tradesperson at short notice, Service Provider A selects a plumber from the yellow pages. Service Provider A has not used this plumber before.
  • Service Provider B arrives at an older client’s home to deliver personal care. The client advises that they desperately need their toenails cut. As the client has diabetes, Service Provider B decides that they do not have the required qualifications, skill or experience to cut the toenails. Service Provider B contacts a local podiatrist to arrange for the toenails to be cut. Service Provider B has not had to contact a podiatrist before.
  • Service Provider C is contracted to deliver Service Group 3. Service Provider C enters into a contract with a medical goods and equipment supplier for equipment to use in its service delivery.
  • Service Provider D employs a technician to repair office equipment as required.

Subcontracting Requirements

Service providers must enter into a formal agreement, that is, a subcontract, with any subcontractor. This subcontract must include the obligations as specified in clause 22 of the Terms and Conditions for aged care funding.

Where service providers engage a subcontractor to deliver Commonwealth HACC services, this is defined in the Aged Care Funding Agreement as a Primary Subcontractor. Where a Primary Subcontractor subcontracts the delivery of Commonwealth HACC services to another organisation, this is defined as a Secondary Subcontractor. Where a Secondary Subcontractor subcontracts service delivery to another organisation, this organisation is also referred to as a Secondary Subcontractor.

The service provider must notify DoHA of Primary Subcontractors and seek consent from DoHA for Secondary Subcontractors. Service providers can notify and seek consent of subcontractors through the Subcontracting Register on the Aged Care Provider Portal. Service providers are only required seek DoHA’s consent or notify DoHA once for each instance of subcontracting, but they must submit a new notice or seek consent each time that subcontracting arrangement changes.

Service provider responsibilities

Service providers remain responsible for the appropriate delivery of quality Commonwealth HACC services regardless of any subcontracting arrangements or ad hoc engagement of contractors.

Under the funding arrangements for the Commonwealth HACC Program, service providers are required to submit a register of subcontractors to DoHA by 30 September 2012. Further information on the format and submission process for this register is available on the Portal.

For more information

The HACC website at www.health.gov.au/hacc or the aged care provider portal at (www.ebiz.agedcare.gov.au) provides information on the changes to the HACC program, including frequently asked questions for service providers.

If you would like to send feedback on the HACC reforms you can do so by emailing: HACC Reform.

This fact sheet has been updated

This fact sheet replaces the previous factsheet on this matter, including Fact Sheet #15 “Subcontracting’ posted on the Portal on 17 May 2012.

Last updated: August 2012
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