Commonwealth of Australia Bills

[Index] [Search] [Download] [Related Items] [Help]


This is a Bill, not an Act. For current law, see the Acts databases.


AGED CARE AMENDMENT (TRANSITION CARE AND ASSETS TESTING) BILL 2005

2004-2005
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Aged Care Amendment (Transition Care
and Assets Testing) Bill 2005
No. , 2005
(Ageing)
A Bill for an Act to amend the Aged Care Act 1997,
and for related purposes
i Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005
Contents
1
Short title.......................................................................................1
2
Commencement .............................................................................1
3
Schedule(s)....................................................................................2
Schedule 1--Leave from residential care for flexible care
3
Aged Care Act 1997
3
Schedule 2--Assets testing
5
Aged Care Act 1997
5
Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005 1
A Bill for an Act to amend the Aged Care Act 1997,
1
and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Aged Care Amendment (Transition
5
Care and Assets Testing) Act 2005.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2 Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day on which this Act receives the
Royal Assent.
2. Schedule 1
The day on which this Act receives the
Royal Assent.
3. Schedule 2
The later of:
(a) the day on which this Act receives the
Royal Assent; and
(b) 1 July 2005.
Note:
This table relates only to the provisions of this Act as originally
1
passed by the Parliament and assented to. It will not be expanded to
2
deal with provisions inserted in this Act after assent.
3
(2) Column 3 of the table contains additional information that is not
4
part of this Act. Information in this column may be added to or
5
edited in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Leave from residential care for flexible care Schedule 1
Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005 3
1
Schedule 1--Leave from residential care for
2
flexible care
3
4
Aged Care Act 1997
5
1 After subsection 42-2(3)
6
Insert:
7
(3A) A care recipient is on
*
leave under this section from a residential
8
care service on a day if:
9
(a)
*
flexible care subsidy is payable in respect of the care
10
recipient and the day; and
11
(b) the requirements specified in the Residential Care Subsidy
12
Principles for the purposes of this paragraph are met.
13
Note:
A lower classification level for working out the amount of the
14
residential care subsidy may apply to the care recipient if he or she is
15
on leave for at least 30 days continuously under subsections (2) and
16
(3A). See section 44-4.
17
2 Subsection 42-2(4)
18
Omit "and (3)", substitute ", (3) and (3A)".
19
3 Paragraph 44-4(1)(a)
20
Repeal the paragraph, substitute:
21
(a) the care recipient either:
22
(i) is on
*
extended hospital leave; or
23
(ii) is on
*
leave from a residential care service under
24
subsection 42-2(3A) and has been on leave continuously
25
for at least 30 days (including that day) first under
26
subsection 42-2(2) and later under subsection 42-2(3A);
27
and
28
4 Application
29
Subparagraph 44-4(1)(a)(ii) of the Aged Care Act 1997 applies whether
30
the period described in the subparagraph started before, on or after the
31
commencement of the subparagraph.
32
5 At the end of subsection 44-4(1)
33
Schedule 1 Leave from residential care for flexible care
4 Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005
Add:
1
Note:
Subsection 42-2(3A) is about leave from a residential care service for
2
flexible care. Subsection 42-2(2) is about leave from such a service for
3
attending a hospital for hospital treatment.
4
6 Subsection 44-6(3)
5
After "hospital", insert "or in hospital and
*
flexible care".
6
Assets testing Schedule 2
Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005 5
1
Schedule 2--Assets testing
2
3
Aged Care Act 1997
4
1 Subsection 44-7(1)
5
Omit "and, at the applicable time under subsection (2)", substitute ", the
6
applicable time under subsection (2) is before 1 July 2005 and, at the
7
applicable time".
8
Note:
The following heading to subsection 44-7(1) is inserted "If the applicable time is before
9
1 July 2005".
10
2 After subsection 44-7(1)
11
Insert:
12
If the applicable time is on or after 1 July 2005
13
(1A) A person is also a concessional resident if the person is being
14
provided with residential care (other than
*
respite care) through a
15
residential care service, the applicable time under subsection (2) is
16
on or after 1 July 2005 and there is in force a determination
17
covered by subsection (1B) or (1C).
18
(1B) This subsection covers a determination, made under
19
section 44-8AA before the person
*
entered the residential care
20
service, that the conditions in paragraphs (1)(a), (b) and (c) would
21
have been met for the person at the time specified in the
22
determination if the references in subparagraphs (1)(b)(ii) and (iii)
23
to the entry time had been references to the time specified in the
24
determination.
25
(1C) This subsection covers a determination, made under
26
section 44-8AA when or after the person
*
entered the residential
27
care service, that the conditions in paragraphs (1)(a), (b) and (c)
28
were met at the applicable time under subsection (2).
29
3 Subsection 44-7(2)
30
Omit "for the purposes of subsection (1)".
31
Note 1: The following heading to subsection 44-7(2) is inserted "What is the applicable time?".
32
Note 2: The following heading to subsection 44-7(3) is inserted "If there is financial hardship
33
(whatever the applicable time)".
34
Schedule 2 Assets testing
6 Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005
4 Subsection 44-8(1)
1
Omit "and, at the applicable time under subsection (2)", substitute ", the
2
applicable time under subsection (2) is before 1 July 2005 and, at the
3
applicable time".
4
Note:
The following heading to subsection 44-8(1) is inserted "If the applicable time is before
5
1 July 2005".
6
5 After subsection 44-8(1)
7
Insert:
8
If the applicable time is on or after 1 July 2005
9
(1A) A person is also an assisted resident if the person is being provided
10
with residential care (other than
*
respite care) through a residential
11
care service, the applicable time under subsection (2) is on or after
12
1 July 2005 and there is in force a determination covered by
13
subsection (1B) or (1C).
14
(1B) This subsection covers a determination, made under
15
section 44-8AA before the person
*
entered the residential care
16
service, that the conditions in paragraphs (1)(a), (b) and (c) would
17
have been met for the person at the time specified in the
18
determination if the references in subparagraphs (1)(b)(ii) and (iii)
19
to the entry time had been references to the time specified in the
20
determination.
21
(1C) This subsection covers a determination, made under
22
section 44-8AA when or after the person
*
entered the residential
23
care service, that the conditions in paragraphs (1)(a), (b) and (c)
24
were met at the applicable time under subsection (2).
25
6 Subsection 44-8(2)
26
Omit "for the purposes of subsection (1)".
27
Note:
The following heading to subsection 44-8(2) is inserted "What is the applicable time?".
28
7 After section 44-8
29
Insert:
30
Assets testing Schedule 2
Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005 7
44-8AA Determinations for sections 44-7 and 44-8
1
Making determinations
2
(1) The Secretary may make a determination (the resident status
3
determination) described in section 44-7 or 44-8 if:
4
(a) the person mentioned in that section has applied, in a form
5
approved by the Secretary, for the resident status
6
determination; and
7
(b) the Secretary has made a determination (the asset value
8
determination) under section 44-8AB of the value of the
9
person's assets at the time that is specified in the resident
10
status determination; and
11
(c) the Secretary is satisfied of the matters relating to the person
12
that are to be set out in the resident status determination.
13
Note:
The time specified in a determination covered by subsection 44-7(1C)
14
or 44-8(1C) is the applicable time under subsection 44-7(2) or
15
44-8(2).
16
Giving notice of decision on resident status determination
17
(2) Within 14 days after deciding whether or not to grant the
18
application, the Secretary must notify the person in writing of:
19
(a) the decision; and
20
(b) if the Secretary made the resident status determination--the
21
content of the determination.
22
When the resident status determination comes into force
23
(3) The resident status determination comes into force on the day it is
24
made or an earlier day stated in the determination to be the day on
25
which the determination comes into force.
26
(4) However, if the determination is made after the person
*
enters the
27
residential care service mentioned in subsection 44-7(1A) or
28
44-8(1A), the day stated must not be before the day the
29
determination is made, unless the Secretary is satisfied that
30
exceptional circumstances justify the determination coming into
31
force on the day stated.
32
Schedule 2 Assets testing
8 Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005
When the resident status determination ceases to be in force
1
(5) The resident status determination ceases to be in force when the
2
asset value determination ceases to be in force, if:
3
(a) the person was not being provided with residential care
4
(other than
*
respite care) through a residential care service
5
when the resident status determination came into force; and
6
(b) the person has not been provided with such care between:
7
(i) the time the resident status determination came into
8
force; and
9
(ii) the time the asset value determination ceases to be in
10
force.
11
Note:
Subsections 44-8AB(3) and (4) explain how to work out when the
12
asset value determination ceases to be in force.
13
(6) The Secretary may by written instrument revoke the resident status
14
determination if he or she ceases to be satisfied of any of the
15
matters relating to the person that are set out in the determination.
16
The determination ceases to be in force on a day specified in the
17
instrument (which may be before the instrument is made).
18
(7) Within 14 days after revoking the resident status determination, the
19
Secretary must give written notice of the revocation and the day on
20
which the determination ceases being in force to:
21
(a) the person; and
22
(b) each approved provider (if any) who has provided the person
23
with residential care (other than
*
respite care) through a
24
residential care service since the determination ceased to be
25
in force.
26
44-8AB Determination of value of person's assets
27
Making determinations
28
(1) The Secretary must determine the value, at the time specified in the
29
determination, of a person's assets in accordance with
30
section 44-10, if the person:
31
(a) applies in the approved form for the determination; and
32
(b) gives the Secretary sufficient information to make the
33
determination.
34
The time specified must be at or before the determination is made.
35
Assets testing Schedule 2
Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005 9
Note:
The determination may affect the maximum amount of
1
accommodation bond or charge for the person under section 57-12 or
2
57A-6, as well as whether the person is a concessional resident under
3
section 44-7 or an assisted resident under section 44-8.
4
Giving notice of the determination
5
(2) Within 14 days after making the determination, the Secretary must
6
give the person a copy of the determination.
7
When the determination is in force
8
(3) The determination is in force for the period specified in, or worked
9
out under, the determination.
10
(4) However, the Secretary may by written instrument revoke the
11
determination if he or she is satisfied that it is incorrect. The
12
determination ceases to be in force on a day specified in the
13
instrument (which may be before the instrument is made).
14
(5) Within 14 days after revoking the determination, the Secretary
15
must give written notice of the revocation and the day the
16
determination ceases being in force to:
17
(a) the person; and
18
(b) if the Secretary is aware that the person has given an
19
approved provider a copy of the determination--the
20
approved provider.
21
8 Section 44-9
22
Omit "concessional resident or an assisted resident", substitute
23
"concessional resident under subsection 44-7(1) or an assisted resident
24
under subsection 44-8(1)".
25
9 At the end of section 44-9
26
Add:
27
Note:
This section does not affect whether a person is a concessional
28
resident under subsection 44-7(1A) or an assisted resident under
29
subsection 44-8(1A).
30
10 Subsection 44-10(1)
31
Omit "or 44-8", substitute ", 44-8 or 44-8AB".
32
11 Subsection 44-10(2)
33
Schedule 2 Assets testing
10 Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. ,
2005
Omit "If the care recipient is a
*
homeowner, the value of the home
1
owned by the care recipient is to be disregarded in working out the
2
value of the care recipient's assets if, at the time of the care recipient's
3
*
entry to the residential care service, the home", substitute "In working
4
out the value at a particular time of the assets of a person who is or was
5
a
*
homeowner then, disregard the value of a home that, at the time,".
6
12 Paragraph 44-10(2)(a)
7
Omit "care recipient", substitute "person".
8
13 Subparagraphs 44-10(2)(b)(ii) and (c)(ii)
9
Omit "of the care recipient's entry to the residential care service".
10
14 Paragraph 57-2(1)(e)
11
Omit "7 days", substitute "21 days".
12
15 Subsection 57-2(2)
13
Omit "7 days" (first occurring), substitute "21 days".
14
16 At the end of subsection 57-12(1)
15
Add:
16
Note:
The operation of this section may be modified if, before entering an
17
accommodation bond agreement, the care recipient gives the approved
18
provider a determination under section 44-8AB of the value of the
19
care recipient's assets. See subsection (5).
20
17 At the end of section 57-12
21
Add:
22
(5) However, subsections (1), (2) and (3) are modified as described in
23
the table, and subsection (4) does not apply, if, before entering the
24
*
accommodation bond agreement, the care recipient gives the
25
approved provider a copy of a determination that:
26
(a) is a determination under section 44-8AB of the value of the
27
care recipient's assets at a time (the valuation time) that is
28
before or at the time (the entry time) the care recipient
29
*
enters the residential care service; and
30
(b) is in force at the entry time, if that is after the valuation time.
31
32
Assets testing Schedule 2
Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005
11
Modifications of subsections (1), (2) and (3)
If:
Subsections (1), (2) and (3) have effect as if:
1 The valuation
time is before
the entry time
(a) the references in paragraphs (1)(b) and (3)(a) to the time of
the care recipient's
*
entry to the residential care service
were references to the valuation time; and
(b) the value of the care recipient's assets at the valuation time
were the value specified in the determination
2 The valuation
time is at the
entry time
The value of the care recipient's assets at the entry time were
the value specified in the determination
18 Subsection 57-16(2) (note 2)
1
Omit "7 days", substitute "21 days".
2
19 Paragraph 57A-2(1)(e)
3
Omit "7 days", substitute "21 days".
4
20 Subsection 57A-2(2)
5
Omit "7 days" (first occurring), substitute "21 days".
6
21 At the end of subsection 57A-6(1)
7
Add:
8
Note:
The operation of this section may be modified if, before entering into
9
an accommodation charge agreement, the care recipient gives the
10
approved provider a determination under section 44-8AB of the value
11
of the care recipient's assets. See subsection (4).
12
22 At the end of section 57A-6
13
Add:
14
(4) However, subsections (1) and (2) are modified as described in the
15
table, and subsection (3) does not apply, if, before entering into the
16
*
accommodation charge agreement, the care recipient gives the
17
approved provider a copy of a determination that:
18
(a) is a determination under section 44-8AB of the value of the
19
care recipient's assets at a time (the valuation time) that is
20
before or at the time (the entry time) the care recipient
21
*
enters the residential care service; and
22
(b) is in force at the entry time, if that is after the valuation time.
23
24
Schedule 2 Assets testing
12 Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. ,
2005
Modifications of subsections (1) and (2)
If:
Subsections (1) and (2) have effect as if:
1 The valuation
time is before
the entry time
(a) the reference in paragraph (1)(b) to the time of the care
recipient's
*
entry to the residential care service were a
reference to the valuation time; and
(b) the value of the care recipient's assets at the valuation time
were the value specified in the determination; and
(c) subsection 57-12(3) defined minimum permissible asset
value by reference to the
*
basic age pension amount at the
valuation time (instead of the entry time)
2 The valuation
time is at the
entry time
The value of the care recipient's assets at the entry time were
the value specified in the determination
23 Section 85-1 (after table item 39)
1
Insert:
2
3
39A
To grant or refuse an application for a
determination described in subsection
44-7(1A) or 44-8(1A) (which is relevant to
a person's status as a
*
concessional
resident or an
*
assisted resident)
subsection 44-8AA(1)
39B
To revoke a determination described in
subsection 44-7(1A) or 44-8(1A)
subsection 44-8AA(6)
39C
To determine the value of a person's assets
subsection 44-8AB(1)
39D
To revoke a determination of the value of
a person's assets
subsection 44-8AB(4)
24 After subsection 96-2(2)
4
Insert:
5
(2A) The Secretary may, in writing, delegate the Secretary's powers
6
under section 44-8AA and 44-8AB to any or all of the following:
7
(a) the
*
CEO;
8
(b) the Secretary of the Department administering the Veterans'
9
Entitlements Act 1986.
10
Note:
The Secretary's powers under section 44-8AA relate to determinations
11
affecting whether persons are concessional residents or assisted
12
residents. The Secretary's powers under section 44-8AB relate to
13
determinations of the value of persons' assets.
14
Assets testing Schedule 2
Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. , 2005
13
25 After subsection 96-2(3)
1
Insert:
2
(3A) The Secretary may, in writing, delegate to either or both of the
3
following:
4
(a) the
*
CEO;
5
(b) the Secretary of the Department administering the Veterans'
6
Entitlements Act 1986;
7
the Secretary's powers under section 85-4 or 85-5 relating to a
8
decision:
9
(c) to grant or refuse an application for a determination described
10
in subsection 44-7(1A) or 44-8(1A); or
11
(d) to revoke a determination made under subsection 44-8AA(1);
12
or
13
(e) to determine under section 44-8AB the value of a person's
14
assets; or
15
(f) to revoke a determination under that section of the value of a
16
person's assets.
17
26 After subsection 96-2(6)
18
Insert:
19
(6A) If, under subsection (2A) or (3A), the Secretary delegates a power
20
mentioned in that subsection to the
*
CEO, the CEO may, by
21
writing, sub-delegate the power to an
*
employee of the
*
Services
22
Delivery Agency.
23
(6B) If, under subsection (2A) or (3A), the Secretary delegates a power
24
mentioned in that subsection to the Secretary of the Department
25
administering the Veterans' Entitlements Act 1986, the Secretary of
26
that Department may, by writing, sub-delegate the power to an
27
APS employee in that Department.
28
27 Application of amendments
29
Entry and approval on or after 1 July 2005
30
(1)
The amendments made by this Schedule apply in relation to the entry of
31
a person into a residential care service (whether for the first time or not)
32
if:
33
(a) the entry occurs on or after 1 July 2005; and
34
Schedule 2 Assets testing
14 Aged Care Amendment (Transition Care and Assets Testing) Bill 2005 No. ,
2005
(b) the person is approved under section 22-1 of the Aged Care
1
Act 1997 on or after 1 July 2005 as a recipient of residential
2
care.
3
Entry on or after 1 July 2005, approval before 1 July 2005
4
(2)
The amendments also apply in relation to the entry of a person into a
5
residential care service (whether for the first time or not) if:
6
(a) the entry occurs on or after 1 July 2005; and
7
(b) the person was approved under section 22-1 of the Aged Care
8
Act 1997 before 1 July 2005 as a recipient of residential care;
9
and
10
(c) the approval had not expired, lapsed or been revoked under
11
Division 23 of that Act by the time of the entry; and
12
(d) the person chooses that the amendments apply.
13
(3)
The person is taken to have made such a choice if he or she has applied
14
in the approved form for the Secretary to determine the value of the
15
person's assets at a time that is before or at the time of entry. This does
16
not limit the ways in which the person may make such a choice.
17
Exception to application--re-entry into care within 28 days
18
(4)
Despite subitems (1) and (2), the amendments do not apply in relation
19
to the person entering the residential care service (the new service) if:
20
(a) the entry occurs within 28 days after the person was last
21
provided with residential care (other than respite care)
22
through a residential care service (the earlier service) and the
23
person had paid an accommodation bond for entry to the
24
earlier service; and
25
(b) the amendments did not apply in relation to the person's most
26
recent earlier entry into the earlier service; and
27
(c) it is not the case that:
28
(i) the person was provided with a low level of residential
29
care through the earlier service; and
30
(ii) the person is provided with a high level of residential
31
care through the new service.
32
Note:
If the amendments do not apply, then the Aged Care Act 1997 as in force without the
33
amendments applies to the person.
34

 


[Index] [Search] [Download] [Related Items] [Help]