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AGED CARE (LIVING LONGER LIVING BETTER) ACT 2013 - SCHEDULE 3

Amendments commencing on 1 July 2014

Part   1 -- Amendments

Aged Care Act 1997

1   At the end of Division   1

Add :

1 - 5   Application to continuing care recipients

    Chapter s   3 and 3A of this Act do not apply in relation to a * continuing care recipient.

Note:   Subsidies, fees and payments for continuing care recipients are dealt with in the Aged Care (Transitional Provisions) Act 1997 .

2   Section   3 - 1

Before "This Act", insert "(1)".

3   Paragraph 3 - 1(a)

Omit "subsidies" , substitute " * subsidies".

4   At the end of section   3 - 1

Add:

  (2)   * Subsidies are also paid under Chapter   3 of the Aged Care (Transitional Provisions) Act 1997 .

5   Section   3 - 2

Omit " subsidy to a provider of * aged care under Chapter   3 ", substitute " * subsidy to a provider of * aged care ".

6   Section   3 - 3 (heading)

Omit " (Chapter   3) ".

7   Section   3 - 3

Omit " subsidy can be paid under Chapter   3 ", substitute " * subsidy can be paid ".

8   After section   3 - 3

Insert:

3 - 3A   Fees and payments

    Care recipients may be required to pay for, or contribute to, the costs of their care and accommodation. Fees and payments are dealt with in Chapter   3A of this Act , and in Divisions   57, 57A, 58 and 60 of the Aged Care (Transitional Provisions) Act 1997 .

9   Section   3 - 4

Omit "subsidy", substitute " * subsidy".

10   Section   5 - 1

Omit " subsidy under Chapter   3 ", substitute " * subsidy ".

11   Section   5 - 1

After " Part   2.6 ( enabling", insert " * accommodation payments, * accommodation contributions, ".

12   Section   5 - 1 (note)

Omit "subsidy under Chapter   3", substitute "subsidy".

13   Section   5 - 2

After "Chapter   3", insert "of this Act or Chapter   3 of the Aged Care (Transitional Provisions) Act 1997 ".

14   Section   6 - 1

Omit "subsidy under Chapter   3", substitute " * subsidy".

15   Section   7 - 1

Omit "subsidy cannot be made under Chapter   3", substitute " * subsidy cannot be made".

16   Subsections 7 - 2(1) and (2)

Omit " subsidy can only be paid under Chapter   3 " , substitute " * subsidy can only be paid".

17   Section   9 - 3 (heading)

Omit " under this Act ".

18   Subsection 9 - 3(1)

After "this Act", insert " or the Aged Care (Transitional Provisions) Act 1997 ".

19   Section   9 - 3A (heading)

After " relating to ", insert " refundable deposits , ".

20   Paragraph 9 - 3A(1)(a)

Before " * accommodation bonds", insert " * refundable deposits or".

21   Paragraph 9 - 3A(1)(b)

After " more" , insert " * refundable deposit balances or".

22   Paragraph 9 - 3A(1)(c)

After " total of the ", insert "refundable deposit balances and".

23   Section   9 - 3B (heading)

Omit " accommodation bond " .

24   Paragraph 9 - 3B(1)(a)

Omit "an * accommodation bond balance as required by section   57 - 21", substitute "a * refundable deposit balance or an * accommodation bond balance".

25   Paragraph 9 - 3B(1)(c)

After "used", insert "a * refundable deposit or".

26   Paragraph 9 - 3B(2)(c)

After " more ", insert " * refundable deposit balances or".

27   Paragraph 9 - 3B(2)(d)

After " how ", insert " * refundable deposits or" .

28   Paragraphs 9 - 3B(2)(e) and (f)

After " use of ", insert "refundable deposits and".

29   Section   11 - 1

Omit "subsidy under Chapter   3", substitute " * subsidy".

30   Section   11 - 4

Omit "subsidy under Chapter   3", substitute " * subsidy".

31   S ubs ection 12 - 1 (1)

Omit "subsidy under Chapter   3", substitute " * subsidy".

32   Subsection 12 - 3(1)

Omit "subsidy under Chapter   3", substitute " * subsidy".

33   Subsection s 12 - 4(1) and (3)

Omit "subsidy", substitute " * subsidy".

34   Subsection 12 - 5(1)

Repeal the subsection, substitute:

  (1)   The Secretary may, in respect of each type of * subsidy, determine for the * places * available for allocation the proportion of care that must be provided to people of kinds specified in the Allocation Principles .

35   Subsections 12 - 6(1) and (2)

Omit "subsidy", substitute " * subsidy".

36   Subsection 13 - 2(2)

Omit "subsidy under Chapter   3", substitute " * subsidy".

37   Paragraph 13 - 2(3 )(b)

Omit "subsidy", substitute " * subsidy".

38   Paragraph 13 - 2(3)(e)

Repeal the paragraph, substitute:

  (e)   the proportion of care (if any), in respect of the places available for allocation, that must be provided to people of kinds specified in the Allocation Principles.

39   Subsection 14 - 1(1)

Omit "subsidy under Chapter   3", substitute " * subsidy".

40   Paragraph 14 - 3(a)

Omit "subsidy under Chapter   3", substitute " * subsidy".

41   S ubsection 14 - 5 (5)

Repeal the subsection, substitute :

Lump sums paid by continuing care recipients

  (5)   If:

  (a)   a condition imposed on an allocation of * places to a person requires:

  (i)   the refund by the person to a * continuing care recipient, with the consent of the continuing care recipient, of a * pre - allocation lump sum or part of such a sum; or

  (ii)   the forgiveness by the person of an obligation (including a contingent obligation) by a continuing care recipient, with the consent of the continuing care recipient, in relation to a pre - allocation lump sum or part of such a sum; and

  (b)   the continuing care recipient continues, on the day on which the allocation was made, to be provided with * aged care through the residential care service in relation to entry to which the pre - allocation lump sum was paid or became payable;

then the continuing care recipient and the pre - allocation lump sum holder have the same rights, duties and obligations in relation to the charging of an * accommodation bond or an * accommodation charge as the continuing care recipient and the pre - allocation lump sum holder would have under this Act and the Aged Care (Transitional Provisions) Act 1997 if:

  (c)   the continuing care recipient had * entered the residential care service or flexible care service on the day on which the allocation was made; and

  (d)   the pre - allocation lump sum were an accommodation bond paid in respect of aged care provided through another residential care service or flexible care service.

Lump sums paid by care recipients other than continuing care recipients

  (5A)   If:

  (a)   a condition imposed on an allocation of * places to a person requires:

  (i)   the refund by the person to a care recipient (the non - continuing care recipient ) who is not a * continuing care recipient, with the consent of the non - continuing care recipient, of a * pre - allocation lump sum or part of such a sum; or

  (ii)   the forgiveness by the person of an obligation (including a contingent obligation) by a non - continuing care recipient , with the consent of the non - continuing care recipient, in relation to a pre - allocation lump sum or part of such a sum; and

  (b)   the non - continuing care recipient continues, on the day on which the allocation was made, to be provided with * aged care through the residential care service in relation to entry to which the pre - allocation lump sum was paid or became payable;

then the non - continuing care recipient and the pre - allocation lump sum holder have the same rights, duties and obligations in relation to the charging of a * refundable deposit as the non - continuing care recipient and the pre - allocation lump sum holder would have under this Act if:

  (c)   the non - continuing care recipient had * entered the residential care service or flexible care service on the day on which the allocation was made; and

  (d)   the pre - allocation lump sum were a refundable deposit paid in respect of aged care provided through another residential care service or flexible care service.

42   Paragraph 14 - 5(6)(c)

After "not", insert "a * refundable deposit,".

43   Paragraph 14 - 8(2)(b)

Omit "subsidy under Chapter   3", substitute " * subsidy".

44   Subsection 15 - 1(1)

Omit "subsidy under Chapter   3", substitute " * subsidy".

45   Subsection 15 - 1(2) (note)

Omit "Subsidy", substitute " * Subsidy".

46   Paragraph 16 - 6(e)

Repeal the paragraph, substitute:

  (e)   the proportion of care (if any), in respect of the places to be transferred, that must be provided to people of kinds specified in the Allocation Principles.

47   Paragraph 16 - 10(2)(d)

Omit "(including, where applicable, retention amounts relating to * accommodation bonds)".

48   Paragraph 16 - 10(2)(g)

After " requirements for ", insert " * refundable deposits and".

49   Paragraph 16 - 11(a)

Omit "subsidy under Chapter   3", substitute " * subsidy".

50   Paragraph 16 - 11(b)

Omit " an ", substitute "a * refundable deposit balance or".

51   Paragraph 16 - 18(e)

Repeal the paragraph, substitute:

  (e)   the proportion of care (if any), in respect of the places to be transferred, that must be provided to people of kinds specifi ed in the Allocation Principles;

52   S ubparagraph 18 - 2(2)(f)(ii)

Repeal the sub paragraph, substitute:

  (ii)   * entry contribution balance; or

  (iii)   * refundable deposit balance ;

53   Subsections 20 - 1(1) to (3)

Omit "Subsidy cannot be paid under Chapter   3", substitute " * Subsidy cannot be paid".

54   Paragraph 20 - 1(3)(b)

Omit "Flexible Care".

55   Section   20 - 2

After "Chapter   3", insert "of this Act or Chapter   3 of the Aged Care (Transitional Provisions) Act 1997 ".

56   Paragraph 23 - 1(b)

Before "the approval", insert "in the case of flexible care-- " .

57   Section   23 - 3

Repeal the section, substitute:

23 - 3   Circumstances in which approval for flexible care lapses

Care not received within a certain time

  (1)   A person's approval as a recipient of flexible care lapses if the person is not provided with the care within:

  (a)   the entry period specified in the Approval of Care Recipients Principles; or

  (b)   if no such period is specified--the period of 12 months starting on the day after the approval was given.

  (2)   Subsection   ( 1) does not apply if the care is specified for the purposes of this subsection in the Approval of Care Recipients Principles.

Person ceases to be provided with care in respect of which approved

  (3)   A person's approval as a recipient of flexible care lapses if the person ceases, in the circumstances specified in the Approval of Care Recipients Principles, to be provided with the care in respect of which he or she is approved.

58   Section   30 - 1

Omit ", but a lower amount of * residential care subsidy is payable".

59   Section   30 - 1 (notes 1 to 4)

Repeal the notes.

60   Paragraph 30 - 3(1)(b)

Repeal the paragraph.

61   Subsection 30 - 3(1) (at the end of the example)

Add "An individual resident's room might also constitute a "distinct part" of the service.".

62   Subsection 30 - 3(1) (note)

Repeal the note.

63   Paragraph 32 - 4(1)(a)

Omit "who:", substitute "who are included in a class of people specified in the Extra Service Principles;".

64   Subparagraphs 32 - 4(1)(a)(i) and (ii)

Repeal the subparagraphs.

65   Subsection 32 - 9(1)

Omit the second sentence.

66   Subsection 35 - 1(1)

Omit "Secretary", substitute " * Aged Care Pricing Commissioner".

67   Subsection 35 - 1(2)

Omit "The Secretary", substitute "The * Aged Care Pricing Commissioner".

68   Paragraphs 35 - 1(2)(c) and (d)

Omit "Secretary", substitute "Aged Care Pricing Commissioner".

69   Subsection 35 - 2(1)

Omit "Secretary", substitute " * Aged Care Pricing Commissioner".

70   Subsection s 35 - 3(1) to (4)

Omit "Secretary", substitute " * Aged Care Pricing Commissioner".

71   Section   35 - 4 (heading)

Omit " Secretary's ".

72   Section   35 - 4

Omit "The Secretary", substitute "The * Aged Care Pricing Commissioner".

73   Section   35 - 4

Omit "Secretary's", substitute " Aged Care Pricing Commissioner 's " .

74   Section   35 - 4

Omit the second sentence.

75   Section   36 - 4 (note)

Omit "56 - 1(f)", substitute "56 - 1(g)".

76   Section   37 - 1

Repeal the section, substitute:

37 - 1   What this Part is about

This Part describes how a residential care service is certified and the circumstances in which certification cease s to have effect .

77   Paragraph 38 - 6(2)(d)

Repeal the paragraph, substitute:

  (d)   the consequences of failure by the approved provider to comply with the approved provider's responsibilities under Part   4.1, 4.2 or 4.3, in particular, that such a failure may lead to the revocation or suspension under Part   4.4 of the certification of the residential care service; and

78   S ection   40 - 1

Omit " pays subsidies", substitute " pays * subsidies under this Chapter".

79   Section   41 - 2 (heading)

Omit " Residential Care ".

80   Section   41 - 2

Omit " Residential Care Subsidy Principles. The provisions " , substitute "Subsidy Principles. Provisions".

81   Section   41 - 2 (note)

Omit "Residential Care".

82   Paragraph 41 - 3(1)(b)

Omit "Residential Care".

83   Paragraph 41 - 3(2)(d)

Omit "Residential Care".

84   Paragraph 42 - 1(2)(c)

Omit " subsections   ( 3) and (4)", substitute " subsection   ( 3)".

85   Subsection 42 - 1(4)

Repeal the subsection   ( not including the note).

86   Paragraph 42 - 2(3A)(b)

Omit "Residential Care".

87   Subsection 42 - 3(3)

After "on leave", insert " (the pre - entry leave ) ".

88   Paragraph 42 - 3(3)(b)

Omit "Residential Care".

89   Subsection 42 - 5(1)

Omit "Residential Care".

90   Paragraph 42 - 5(3)(d)

Omit "Residential Care".

91   Subsection 43 - 1(3)

Omit "Residential Care".

92   Paragraph 43 - 2(b)

Omit "Residential Care".

93   Subsection 43 - 3(4)

Omit "Residential Care " .

94   Subsection 43 - 6(3)

Omit "Residential Care" (wherever occurring).

95   Subsection 43 - 6(5) ( paragraph   ( g ) of the definition of capital payment )

Repeal the paragraph, substitute:

  (b)   a payment of a kind specified in the Subsidy Principles.

96   Subsection 43 - 8(1)

Omit all the words after " care service ", substitute "if conditions specified in the Subsidy Principles, to which the allocation of the * places included in the service are subject under section   14 - 5 or 14 - 6, have not been met".

97   Subsections 43 - 8(2) and (4)

Omit "Residential Care".

98   Subsection 44 - 2(2) (R esidential care subsidy calculator, step 4)

Repeal the step.

99   Subsection 44 - 2(2) (R esidential care subsidy calculator, step 5)

Renumber as step 4.

100   Paragraph 44 - 3(3)(aa)

Repeal the paragraph.

101   Paragraphs 44 - 3(3)(c) and (d)

Repeal the paragraphs.

102   Paragraph 44 - 3(3)(e)

Omit "Residential Care ".

103   Sections   44 - 5 to 44 - 16

Repeal the sections, substitute:

44 - 5   Primary supplements

  (1)   The primary supplements for the care recipient are such of the following primary supplements as apply to the care recipient in respect of the * payment period:

  (a)   the following primary supplements as set out in the Subsidy Principles:

  (i)   the respite supplement ;

  (ii)   the oxygen supplement;

  (iii)   the enteral feeding supplement;

  (iv)   the dementia and severe behaviours supplement;

  (v)   the veterans ' supplement;

  (vi)   the workforce supplement;

  (b)   any other primary supplement set out in the Subsidy Principles for the purposes of this paragraph.

  (2)   The Subsidy Principles may specify, in respect of each primary supplement, the circumstances in which the supplement will apply to a care recipient in respect of a * payment period.

  (3)   The Minister may determine by legislative instrument, in respect of each such supplement, the amount of the supplement, or the way in which the amount of the supplement is to be worked out.

104   Paragraphs 44 - 17(a) to (c)

Repeal the paragraphs, substitute:

  (a)   the adjusted subsidy reduction (see section   44 - 19);

  (b)   the compensation payment reduction (see section s   44 - 20 and 44 - 20A );

  (c)   the care subsidy reduction (see section s   44 - 21 and 44 - 23 ).

105   Section   44 - 18

Repeal the section.

106   Subsections 44 - 20(5) and (6)

Omit "Residential Care".

107   Subsection 44 - 20(8)

Omit "an * accommodation bond", substitute " a * refundable deposit".

108   Subsection 44 - 20(8)

Omit "Residential Care".

109   Subdivision   44 - E (heading)

Repeal the heading.

110   Sections   44 - 21 to 44 - 23

Repeal the section s , substitute:

44 - 20A   Secretary's powers if compensation information is not given

  (1)   This section applies if:

  (a)   the Secretary believes on reasonable grounds that a care recipient is entitled to compensation under a judg e ment, settlement or reimbursement arrangement; and

  (b)   the Secretary does not have sufficient information to apply section   44 - 20 in relation to the compensation.

  (2)   The Secretary may, by notice in writing given to a person, require the person to give information or produce a document that is in the person's custody, or under the person's control, if the Secretary believes on reasonable grounds that the information or document may be relevant to the application of section   44 - 20 in relation to the compensation.

  (3)   The notice must specify:

  (a)   how the person is to give the information or produce the document; and

  (b)   the period within which the person is to give the info rmation or produce the document; and

  (c)   the effect of subsection   ( 4).

Note:   Sections   28A and 29 of the Acts Interpretation Act 1901 (which deal with service of documents) apply to notice given under this section.

  (4)   If the information or document is not given or produced within the specified period, the Secretary may determine compensation payment reduction s for the care recipient.

Note:   Decisions to determine compensation payment reductions under this section are reviewable under Part   6.1.

  (5)   The compensation payment reduction s must be determined in accordance with the Subsidy Principles.

44 - 21   The care subsidy reduction

  (1)   The care subsidy reduction for the care recipient in respect of the * payment period is the sum of all the care subsidy reductions for days during the period on which the care recipient is provided with residential care through the residential care service in question.

  (2)   Subject to this section and section   44 - 23 , the care subsidy reduction for a particular day is worked out as follows:

Care subsidy reduction calculator

Step 1.   Work out the means tested amount for the care recipient (see section   44 - 22 ).

Step 2.   Subtract the maximum accommodation supplement amount for the day (see subsection   ( 6)) from the means tested amount.

Step 3.   If the amount worked out under s tep 2 does not exceed zero, the care subsidy reduction is zero.

Step 4.   If the amount worked out under s tep 2 exceeds zero but not the sum of the following, the care subsidy reduction is the amount worked out under s tep 2:

  (a)   the basic subsidy amount for the care recipient;

  (b)   all primary supplement amounts for the care recipient.

Step 5.   If the amount worked out under s tep 2 exceeds the sum of the following, the care subsidy reduction is that sum:

  (a)   the basic subsidy amount for the care recipient;

  (b)   all primary supplement amounts for the care recipient.

  (3)   If the care recipient has not provided sufficient information about the care recipient's income and assets for the care recipient's means tested amount to be determined, the care subsidy reduction is the sum of the basic subsidy and primary supplement amounts for the care recipient .

  (4)   If, apart from this subsection, the sum of all the * combined care subsidy reductions made for the care recipient during a * start - date year for the care recipient would exceed the annual cap applying at the time for the care recipient , the care subsidy reduction for the remainder of the start - date year is zero.

  (5)   If, apart from this subsection, the sum of all the previous * combined care subsidy reductions made for the care recipient would exceed the lifetime cap applying at the time, the care subsidy reduction for the remainder of the care recipient's life is zero.

  (6)   The maximum accommodation supplement amount for a day is the highest of the amounts determined by the Minister by legislative instrument as the amounts of accommodation supplement payable for residential care services for that day.

  (7)   The annual cap , for the care recipient, is the amount determined by the Minister by legislative instrument for the class of care recipients of which the care recipient is a member.

  (8)   The lifetime cap is the amount determined by the Minister by legislative instrument.

44 - 2 2   Working out the means tested amount

  (1)   The means tested amount for the care recipient is worked out as follows:

Means tested amount calculator

Work out the income tested amount using steps 1 to 4:

Step 1.   Work out the care recipient's * total assessable income on a yearly basis using section   44 - 24.

Step 2.   Work out the care recipient's * total assessable income free area using section   44 - 26.

Step 3.   If the care recipient's total assessable income does not exceed the care recipient's total assessable income free area, the income tested amount is zero.

Step 4.   If the care recipient's * total assessable income exceeds the care recipient's total assessable income free area, the income tested amount is 50% of that excess divided by 364.

Work out the per day asset tested amount using steps 5 to 10:

Step 5.   Work out the value of the care recipient's assets using section   44 - 26A .

Step 6.   If the value of the care recipient's assets does not exceed the asset free area , the asset tested amount is zero.

Step 7.   If the value of the care recipient's assets exceeds the asset free area but not the first asset threshold , the asset tested amount is 17.5% of the excess.

Step 8.   If the value of the care recipient's assets exceeds the first asset threshold but not the second asset threshold , the asset tested amount is the sum of the following:

  (a)   1% of the excess;

  (b)   17.5% of the difference between the asset free area and the first asset threshold.

Step 9.   If the value of the care recipient's assets exceeds the second asset threshold, the asset tested amount is the sum of the following:

  (a)   2% of the excess;

  (b)   1% of the difference between the first asset threshold and the second asset threshold;

  (c)   17.5% of the difference between the asset free area and the first asset threshold.

Step 10.   The per day asset tested amount is the asset tested amount divided by 364.

The means tested amount is the sum of the income tested amount and the per day asset tested amount.

  (2)   The asset free area is :

  (a)   the amount equal to 2.25 times the * basic age pension amount; or

  (b)   such other amount as is calculated in accordance with the Subsidy Principles.

  (3)   The first asset threshold and the second asset threshold are the amounts determined by the Minister by legislative instrument.

44 - 23   Care subsidy reduction taken to be zero in some circumstances

  (1)   The care subsidy reduction in respect of the care recipient is taken to be zero for each day, during the * payment period, on which one or more of the following applies:

  (a)   the care recipient was provided with * respite care;

  (b)   a determination was in force under subsection   ( 2) in relation to the care recipient;

  (c)   the care recipient was included in a class of people specified in the Subsidy Principles.

  (2)   The Secretary may, in accordance with the Subsidy Principles, determine that the care subsidy reduction in respect of the care recipient is to be taken to be zero.

Note:   Refusals to make determinations are reviewable under Part   6.1.

  (3)   The determination ceases to be in force at the end of the period (if any) specified in the determination.

Note:   Decisions specifying periods are reviewable under Part   6.1.

  (4)   In deciding whether to make a determination, the Secretary must have regard to the matters specified in the Subsidy Principles.

  (5)   Application may be made to the Secretary, in the form approved by the Secretary, for a determination under subsection   ( 2) in respect of a care recipient. The application may be made by:

  (a)   the care recipient; or

  (b)   an approved provider that is providing, or is to provide, residential care to the care recipient.

  (6)   The Secretary must notify the care recipient and the approved provider, in writing, of the Secretary's decision on whether to make the determination. The notice must be given:

  (a)   if an application for a determination was made under subsection   ( 5)--within 28 days after the application was made, or, if the Secretary requested further information in relation to the application, within 28 days after receiving the information; or

  (b)   if such an application was not made--within 28 days after the decision is made.

  (7)   A determination under subsection   ( 2) is not a legislative instrument.

111   Subsection 44 - 24(5)

Omit "Residential Care".

112   Subparagraph s 44 - 24(6) (c) (ii) and (7)(b)(ii)

Omit "Residential Care".

113   Subsection 44 - 24(11)

Omit "Residential Care".

114   Subsection 44 - 26(1) (heading)

Repeal the heading.

115   Subsection 44 - 26(1)

Omit "(1)".

116   Subsection 44 - 26(1)

Omit "(other than a * protected resident or a * phased resident)".

117   Subsections 44 - 26(2) to (6)

Repeal the subsections.

118   At the end of Subdivision   44 - E

Add:

44 - 26A   The value of a person's assets

  (1)   Subject to this section, the value of a person's assets for the purposes of section   44 - 22 is to be worked out in accordance with the Subsidy Principles.

  (2)   If a person who is receiving an * income support supplement or a * service pension has an income stream (within the meaning of the Veterans' Entitlements Act 1986 ) that was purchased on or after 20   September 2007, the value of the person's assets:

  (a)   is taken to include the amount that the Secretary determines to be the value of that income stream that would be included in the value of the person's assets if Subdivision A of Division   11 of Part   IIIB of the Veterans' Entitlements Act 1986 applied for the purposes of this Act; and

  (b)   is taken to exclude the amount that the Secretary determines to be the value of that income stream that would not be included in the value of the person's assets if Subdivision A of Division   11 of Part   IIIB of the Veterans' Entitlements Act 1986 applied for the purposes of this Act.

  (3)   If a person who is not receiving an * income support supplement or a * service pension has an income stream (within the meaning of the Social Security Act 1991 ) that was purchased on or after 20   September 2007, the value of the person's assets:

  (a)   is taken to include the amount that the Secretary determines to be the value of that income stream that would be included in the value of the person's assets if Division   1 of Part   3.12 of the Social Security Act 1991 applied for the purposes of this Act; and

  (b)   is taken to exclude the amount that the Secretary determines to be the value of that income stream that would not be included in the value of the person's assets if Division   1 of Part   3.12 of the Social Security Act 1991 applied for the purposes of this Act.

  (4)   The value of a person's assets is taken to include the amount that the Secretary determines to be the amount:

  (a)   if the person is receiving an * income support supplement or a * service pension--that would be included in the value of the person's assets if Subdivisions B and BB of Division   11 and Subdivision H of Division   11A of Part   IIIB of the Veterans' Entitlements Act 1986 applied for the purposes of this Act; and

  (b)   otherwise--that would be included in the value of the person's assets if Division   2 of Part   3.12 and Division   8 of Part   3.18 of the Social Security Act 1991 applied for the purposes of this Act.

Note 1:   Subdivisions B and BB of Division   11 of Part   IIIB of the Veterans' Entitlements Act 1986 , and Division   2 of Part   3.12 of the Social Security Act 1991 , deal with disposal of assets.

Note 2:   Subdivision H of Division   11A of Part   IIIB of the Veterans' Entitlements Act 1986 , and Division   8 of Part   3.18 of the Social Security Act 1991 , deal with the attribution to individuals of assets of private companies and private trusts.

  (5)   If a person has paid a * refundable deposit, the value of the person's assets is taken to include the amount of the * refundable deposit balance.

  (6)   In working out the value at a particular time of the assets of a person who is or was a * homeowner , disregard the value of a home that, at the time, was occupied by:

  (a)   the * partner or a * dependent child of the person; or

  (b)   a carer of the person who:

  (i)   had occupied the home for the past 2 years; and

  (ii)   was eligible to receive an * income support payment at the time; or

  (c)   a * close relation of the person who:

  (i)   had occupied the home for the past 5 years; and

  (ii)   was eligible to receive an * income support payment at the time.

  (7)   In working out the value at a particular time of the assets of a person who is or was a * homeowner, disregard the value of a home to the extent that it exceeded the * maximum home value in force at that time.

  (8)   The value of the assets of a person who is a * member of a couple is taken to be 50% of the sum of:

  (a)   the value of the person's assets; and

  (b)   the value of the assets of the person's * partner.

  (9)   A reference to the value of the assets of a person is, in relation to an asset owned by the person jointly or in common with one or more other people, a reference to the value of the person's interest in the asset.

  (10)   A determination under paragraph   ( 2)(a), (2)(b), (3)(a) or (3)(b) or subsection   ( 4) is not a legislative instrument.

44 - 26B   Definitions relating to the value of a person's assets

  (1)   In section   44 - 26A, and in this section:

"child" : without limiting who is a child of a person for the purposes of this section and section   44 - 26A, each of the following is the child of a person:

  (a)   a stepchild or an adopted child of the person;

  (b)   someone who would be the stepchild of the person except that the person is not legally married to the person's partner;

  (c)   someone who is a child of the person within the meaning of the Family Law Act 1975 ;

  (d)   someone included in a class of persons specified for the purposes of this paragraph in the Subsidy Principles.

"close relation" , in relation to a person, means:

  (a)   a parent of the person; or

  (b)   a sister, brother, child or grandchild of the person; or

  (c)   a person included in a class of persons specified in the Subsidy Principles.

Note:   See also subsection   ( 5).

"dependent child" has the meaning given by subsection   ( 2).

"homeowner" has the meaning given by the Subsidy Principles.

"maximum home value" means the amount determined by the Minister by legislative instrument.

"member of a couple" means:

  (a)   a person who is legally married to another person, and is not living separately and apart from the person on a permanent basis; or

  ( b )   a person whose relationship with another person (whether of the same sex or a different sex) is registered under a law of a State or Territory prescribed for the purposes of section   2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section, and who is not living separately and apart from the other person on a permanent basis; or

  (c )   a person who lives with another person (whether of the same sex or a different sex) in a   de   facto   relationship, although not legally married to the other person.

"parent" : without limiting who is a parent of a person for the purposes of this section and section   44 - 26A, someone is the parent of a person if the person is his or her child because of the definition of child in this section.

"partner" , in relation to a person, means the other * member of a couple of which the person is also a member.

  (2)   A young person (see subsection   ( 3)) is a dependent child of a person (the adult ) if:

  (a)   the adult:

  (i)   is legally responsible (whether alone or jointly with another person) for the day - to - day care, welfare and development of the young person; or

  (ii)   is under a legal obligation to provide financial support in respect of the young person; and

  (b )   in a subparagraph   ( a)(ii) case--the adult is not included in a class of people specified for the purposes of this paragraph in the Subsidy Principles; and

  (c )   the young person is not:

  (i)   in full - time employment; or

  (ii)   in receipt of a social security pension (within the meaning of the Social Security Act 1991 ) or a social security benefit (within the meaning of that Act); or

  (iii)   included in a class of people specified in the Subsidy Principles.

  (3)   A reference in subsection   ( 2) to a young person is a reference to any of the following:

  (a)   a person under 16 years of age;

  (b)   a person who:

  (i)   has reached 16 years of age, but is under 25 years of age; and

  (ii)   is receiving full - time education at a school, college or university;

  (c)   a person included in a class of people specified in the Subsidy Principles.

  (4)   The reference in paragraph   ( 2)(a) to care does not have the meaning given in the Dictionary in Schedule   1.

  (5)   For the purposes of paragraph   ( b) of the definition of close relation in subsection   ( 1), if one person is the child of another person because of the definition of child in this section, relationships traced to or through the person are to be determined on the basis that the person is the child of the other person.

44 - 26C   Determination of value of person's assets

Making determinations

  (1)   The Secretary must determine the value, at the time specified in the determination, of a person's assets in accordance with section   44 - 26A, if the person:

  (a)   applies in the approved form for the determination; and

  (b)   gives the Secretary sufficient information to make the determination.

The time specified must be at or before the determination is made.

Note 1 :   Determinations are reviewable under Part   6.1.

Note 2:   An application can be made under this section for the purposes of section   52J - 5: see subsection 52J - 5(3).

Giving notice of the determination

  (2)   Within 14 days after making the determination, the Secretary must give the person a copy of the determination.

When the determination is in force

  (3)   The determination is in force for the period specified in, or worked out under, the determination.

  (4)   However, the Secretary may by written instrument revoke the determination if he or she is satisfied that it is incorrect. The determination ceases to be in force on a day specified in the instrument (which may be before the instrument is made).

Note:   Revocations of determinations are reviewable under Part   6.1.

  (5)   Within 14 days after revoking the determination, the Secretary must give written notice of the revocation and the day the determination ceases being in force to:

  (a)   the person; and

  (b)   if the Secretary is aware that the person has given an approved provider a copy of the determination--the approved provider.

  (6)   A determination made under subsection   ( 1) is not a legislative instrument.

119   Section   44 - 27

Before "The other", insert "(1)".

120   Section   44 - 27

Omit "step 5", substitute "step 4".

121   Paragraph 44 - 27(a)

Omit "pensioner", substitute "accommodation".

122   Paragraph s 44 - 27(b ) to (e)

Repeal the paragraph s , substitute:

  (b)   the hardship supplement (see section   44 - 30);

  (c )   any other supplement set out in the Subsidy Principles for the purposes of this paragraph.

123   Section   44 - 27 (note)

Repeal the note.

124   At the end of section   44 - 27 (before the note)

Add:

  (2)   The Subsidy Principles may specify, in respect of each other supplement set out for the purposes of paragraph   ( 1)( c ), the circumstances in which the supplement will apply to a care recipient in respect of a * payment period.

  (3)   The Minister may determine by legislative instrument, in respect of each such supplement, the amount of the supplement, or the way in which the amount of the supplement is to be worked out.

125   Section   44 - 28

Repeal the section, substitute:

44 - 28   The accommodation supplement

  (1)   The accommodation supplement for the care recipient in respect of the * payment period is the sum of all the accommodation supplements for the days during the period on which:

  (a)   the care recipient was provided with residential care (other than * respite care) through the * residential care service in question; and

  (b)   the care recipient was eligible for accommodation supplement.

  (2)   The care recipient is eligible for * accommodation supplement on a particular day if :

  (a)   on that day:

  ( i )   the care recipient's * classification level is not the lowest applicable classification level; and

  ( ii )   the residential care service is * certified; and

  ( iii )   the residential care provided to the care recipient is not pro vided on an extra service basis ; and

  (b)   on the day (the entry day ) on which the care recipient entered the residential care service, the care recipient's means tested amount was less than the maximum accommodation supplement amount for the entry day.

  (3)   The care recipient is also eligible for * accommodation supplement on a particular day if, on that day, a * financial hardship determination under section   52K - 1 is in force for the person.

  (4 )   The * accommodation supplement for a particular day is the amount:

  (a)   determined by the Minister by legislative instrument; or

  (b)   worked out in accordance with a method determined by the Minister by legislative instrument.

  (5 )   The Minister may determine different amounts (including nil amounts) or methods based on any one or more of the following:

  (a)   the income of a care recipient;

  (b)   the value of assets held by a care recipient;

  (c)   the status of the building in which the residential care service is provided;

  (d)   any other matter specified in the Subsidy Principles.

126   Section   44 - 29

Repeal the section.

127   Subsection 44 - 30(2)

Omit "Subject to subsection   ( 4), the", substitute "The".

128   Paragraph 44 - 30(2)(a)

Omit "Residential Care".

129   Paragraph 44 - 30(2)(a)

Omit "the maximum daily amount of resident fees worked out under section   58 - 2", substitute " a daily amount of resident fees of more than the amount specified in the Principles ".

130   At the end of subsection 44 - 30(2)

Add:

The specified amount may be nil.

131   Subsection 44 - 30(3)

Omit "Subject to subsection   ( 4), the", substitute "The".

132   Subsection 44 - 30(4)

Repeal the subsection.

133   Subsection s 44 - 31(1) and (2)

Repeal the subsections, substitute:

  (1)   The Secretary may, in accordance with the Subsidy Principles, determine that the care recipient is eligible for a hardship supplement if the Secretary is satisfied that paying a daily amount of resident fees of more than the amount specified in the determination would cause the care recipient financial hardship.

Note:   Refusals to make determinations are reviewable under Part   6.1.

  (2)   In deciding whether to make a determination under this section, and in determining the specified amount, the Secretary must have regard to the matters (if any) specified in the Subsidy Principles. The specified amount may be nil.

134   Section   44 - 32

Repeal the section, substitute:

44 - 32   Revoking determinations of financial hardship

  (1)   The Secretary may, in accordance with the Subsidy Principles, revoke a determination under section   44 - 31.

Note:   Revocations of determinations are reviewable under Part   6.1.

  (2)   Before deciding to revoke the determination, the Secretary must notify the care recipient and the approved provider concerned that revocation is being considered.

  (3)   The notice must be in writing and must:

  (a)   invite the care recipient and the approved provider to make submissions, in writing, to the Secretary within 28 days after receiving the notice; and

  (b)   inform them that if no submissions are made within that period, the revocation takes effect on the day after the last day for making submissions.

  (4)   In making the decision whether to revoke the determination, the Secretary must consider any submissions received within the period for making submissions. The Secretary must make the decision within 28 days after the end of that period.

  (5)   The Secretary must notify, in writing, the care recipient and the approved provider of the decision.

  (6)   The notice must be given to the care recipient and the approved provider within 28 days after the end of the period for making submissions.

  (7)   If the notice is not given within that period, the Secretary is taken to have decided not to revoke the determination.

  (8)   A revocation has effect:

  (a)   if the care recipient and the approved provider received notice under subsection   ( 5) on the same day--the day after that day; or

  (b)   if they received the notice on different days--the day after the later of those days.

135   Section   45 - 2 (heading)

Omit " Home Care ".

136   Section   45 - 2

Omit "Home Care Subsidy Principles. The provisions " , substitute "Subsidy Principles. Provisions" .

137   Section   45 - 2 (note)

Omit "Home Care".

138   Subsection 45 - 3(2)

Omit "Home Care".

139   Subsection 46 - 2(3)

Omit "Home Care".

140   Paragraph 47 - 2(b)

Omit "Home Care".

141   Subsection 47 - 3(4)

Omit "Home Care".

142   Section   48 - 1

Repeal the section, substitute:

48 - 1   Amount of home care subsidy

  (1)   The amount of * home care subsidy payable to an approved provider for a home care service in respect of a * payment period is the amount worked out by adding together the amounts of home care subsidy for each care recipient:

  (a)   in respect of whom there is in force a * home care agreement for provision of home care provided through the service during the period; and

  (b)   in respect of whom the approved provider was eligible for home care subsidy during the period.

  (2)   This is how to work out the amount of * home care subsidy for a care recipient in respect of the * payment period.

Home care subsidy calculator

Step 1.   Work out the basic subsidy amount using section   48 - 2.

Step 2.   Add to this amount the amounts of any primary supplements worked out using section   48 - 3.

Step 3.   Subtract the amounts of any reduction s in subsidy worked out using section   48 - 4.

Step 4 .   Add the amounts of any other supplements worked out using section   48 - 9 .

The result is the amount of home care subsidy for the care recipient in respect of the * payment period.

48 - 2   The basic subsidy amount

  (1)   The basic subsidy amount for the care recipient in respect of the * payment period is the sum of all the basic subsidy amounts for the days during the period on which the care recipient was provided with home care through the home care service in question.

  (2)   The basic subsidy amount for a day is the amount determined by the Minister by legislative instrument.

  (3)   The Minister may determine different amounts (including nil amounts) based on any one or more of the following:

  (a)   the levels for care recipients being provided with home care;

  (b)   any other matters specified in the Subsidy Principles;

  (c)   any other matters determined by the Minister.

48 - 3   Primary supplements

  (1)   The primary supplements for the care recipient under step 2 of the home care subsidy calculator are such of the following primary supplements as apply to the care recipient in respect of the * payment period:

  (a)   the following primary supplements as set out in the Subsidy Principles:

  (i)   the oxygen supplement;

  (ii)   the enteral feeding supplement;

  (iii)   the dementia and cognition supplement;

  (iv)   the veteran s ' supplement;

  (v)   the workforce supplement;

  (b)   any other primary supplement set out in the Subsidy Principles for the purposes of this paragraph.

  (2)   The Subsidy Principles may specify, in respect of each primary supplement, the circumstances in which the supplement will apply to a care recipient in respect of a * payment period.

  (3)   The Minister may determine by legislative instrument, in respect of each such supplement, the amount of the supplement, or the way in which the amount of the supplement is to be worked out.

48 - 4   Reductions in subsidy

    The reductions in subsidy for the care recipient under step 3 of the home care subsidy calculator are such of the following reductions as apply to the care recipient in respect of the * payment period:

  (a)   the compensation payment reduction (see section s   48 - 5 and 48 - 6 ) ;

  (b )   the care subsidy reduction (see section s   48 - 7 and 48 - 8 ) .

48 - 5   The compensation payment reduction

  (1)   The compensation payment reduction for the care recipient in respect of the * payment period is the sum of all compensation payment reductions for days during the period:

  (a)   on which the care recipient is provided with home care through the home care service in question; and

  (b)   that are covered by a compensation entitlement.

  (2)   For the purposes of this section, a day is covered by a compensation entitlement if:

  (a)   the care recipient is entitled to compensation under a judg e ment, settlement or reimbursement arrangement; and

  (b)   the compensation takes into account the cost of providing home care to the care recipient on that day; and

  (c)   the application of compensation payment reductions to the care recipient for preceding days has not resulted in reductions in subsidy that, in total, exceed or equal the part of the compensation that relates, or is to be treated under subsection   ( 5) or (6) as relating, to future costs of providing home care.

  (3)   The compensation payment reduction for a particular day is an amount equal to the amount of * home care subsidy that would be payable for the care recipient in respect of the * payment period if:

  (a)   the care recipient was provided with home care on that day only; and

  (b)   this section and sections   48 - 9 and 48 - 10 did not apply.

  (4)   However, if:

  (a)   the compensation payment reduction arises from a judg e ment or settlement that fixes the amount of compensation on the basis that liability should be apportioned between the care recipient and the compensation payer; and

  (b)   as a result, the amount of compensation is less than it would have been if liability had not been so apportioned; and

  (c)   the compensation is not paid in a lump sum;

the amount of the compensation payment reduction under subsection   ( 3) is reduced by the proportion corresponding to the proportion of liability that is apportioned to the care recipient by the judg e ment or settlement.

  (5)   If a care recipient is entitled to compensation under a judg e ment or settlement that does not take into account the future costs of providing home care to the care recipient, the Secretary may, in accordance with the Subsidy Principles, determine:

  (a)   that, for the purposes of this section, the judg e ment or settlement is to be treated as having taken into account the cost of providing that home care; and

  (b)   the part of the compensation that, for the purposes of this section, is to be treated as relating to the future costs of providing home care.

Note:   Determinations are reviewable under Part   6.1.

  (6)   If:

  (a)   a care recipient is entitled to compensation under a settlement; and

  (b)   the settlement takes into account the future costs of providing home care to the recipient; and

  (c)   the Secretary is satisfied that the settlement does not adequately take into account the future costs of providing home care to the care recipient;

the Secretary may, in accordance with the Subsidy Principles, determine the part of the compensation that, for the purposes of this section, is to be treated as relating to the future costs of providing home care.

Note:   Determinations are reviewable under Part   6.1.

  (7)   A determination under subsection   ( 5) or (6) must be in writing and notice of it must be given to the care recipient.

  (8 )   A determination under subsection   ( 5) or (6) is not a legislative instrument.

  (9)   In this section, the following terms have the same meanings as in the Health and Other Services (Compensation) Act 1995 :

compensation

compensation payer

judg e ment

reimbursement arrangement

settlement

48 - 6   Secretary's powers if compensation information is not given

  (1)   This section applies if:

  (a)   the Secretary believes on reasonable grounds that a care recipient is entitled to compensation under a judg e ment, settlement or reimbursement arrangement; and

  (b)   the Secretary does not have sufficient information to apply section   48 - 5 in relation to the compensation.

  (2)   The Secretary may, by notice in writing given to a person, require the person to give information or produce a document that is in the person's custody, or under the person's control, if the Secretary believes on reasonable grounds that the information or document may be relevant to the application of section   48 - 5 in relation to the compensation.

  (3)   The notice must specify:

  (a)   how the person is to give the information or produce the document; and

  (b)   the period within which the person is to give the information or produce the document.

Note:   Sections   28A and 29 of the Acts Interpretation Act 1901 (which deal with service of documents) apply to notice given under this section.

  (4)   If the information or document is not given or produced within the specified period, the Secretary may determine compensation payment reduction s for the care recipient.

Note:   Decisions to determine compensation payment reductions under this section are reviewable under Part   6.1.

  (5)   The compensation payment reduction s must be determined in accordance with the Subsidy Principles.

48 - 7   The care subsidy reduction

  (1)   The care subsidy reduction for the care recipient for the * payment period is the sum of all the care subsidy reductions for days during the period on which the care recipient is provided with home care through the home care service in question.

  (2)   Subject to this section and section   48 - 8 , the care subsidy reduction for a particular day is worked out as follows:

Care subsidy reduction calculator

Step 1.   Work out the care recipient's total assessable income on a yearly basis using section   44 - 24.

Step 2.   Work out the care recipient's total assessable income free area using section   44 - 26.

Step 3.   If the care recipient's total assessable income does not exceed the care recipient's total assessable income free area, the care subsidy reduction is zero.

Step 4.   If the care recipient's total assessable income exceeds the care recipient's total assessable income free area but not the income threshold , the care subsidy reduction is equal to the lowest of the following:

  (a)   the sum of the basic subsidy amount for the care recipient and all primary supplements for the care recipient;

  (b)   50% of the amount by which the care recipient's total assessable income exceeds the income free area (worked out on a per day basis);

  (c)   the amount (the first cap ) determined by the Minister by legislative instrument for the purposes of this paragraph.

Step 5.   If the care recipient's total assessable income exceeds the income threshold , the care subsidy reduction is equal to the lowest of the following:

  (a)   the sum of the basic subsidy amount for the care recipient and all primary supplements for the care recipient;

  (b)   50% of the amount by which the care recipient's total assessable income exceeds the income threshold (worked out on a per day basis) plus the amount specified in paragraph   ( c) of step 4;

  (c)   the amount (the second cap ) determined by the Minister by legislative instrument for the purposes of this paragraph.

  (3)   If the care recipient has not provided sufficient information about the care recipient's income for the care recipient's care subsidy reduction to be determined, the care subsidy reduction is equal to the lesser of the following:

  (a)   the sum of the basic subsidy amount for the care recipient and all primary supplements for the care recipient;

  (b)   the second cap.

  (4)   If, apart from this subsection, the sum of all the * combined care subsidy reductions made for the care recipient during a * start - date year for the care recipient would exceed the annual cap applying at the time for the care recipient , the care subsidy reduction for the remainder of the start - date year is zero.

  (5)   If, apart from this subsection, the sum of all the previous * combined care subsidy reductions made for the care recipient would exceed the lifetime cap applying at the time, the care subsidy reduction for the remainder of the care recipient's life is zero.

  (6)   The income threshold is the amount determined by the Minister by legislative instrument.

  (7)   The annual cap , for the care recipient, is the amount determined by the Minister by legislative instrument for the class of care recipients of which the care recipient is a member.

  (8)   The lifetime cap is the amount determined by the Minister by legislative instrument.

48 - 8   Care subsidy reduction taken to be zero in some circumstances

  (1)   The care subsidy reduction in respect of the care recipient is taken to be zero for each day, during the * payment period, on which one or more of the following applies:

  (a )   a determination was in force under subsection   ( 2) in relation to the care recipient;

  (b )   the care recipient was included in a class of people specified in the Subsidy Principles.

  (2)   The Secretary may, in accordance with the Subsidy Principles, determine that the care subsidy reduction in respect of the care recipient is to be taken to be zero.

Note:   Refusals to make determinations are reviewable under Part   6.1.

  (3)   The determination ceases to be in force at the end of the period (if any) specified in the determination.

Note:   Decisions specifying periods are reviewable under Part   6.1.

  (4)   In deciding whether to make a determination, the Secretary must have regard to the matters specified in the Subsidy Principles.

  (5)   Application may be made to the Secretary, in the form approved by the Secretary, for a determination under subsection   ( 2) in respect of a care recipient. The application may be made by:

  (a)   the care recipient; or

  (b)   an approved provider that is providing, or is to provide, home care to the care recipient.

  (6)   The Secretary must notify the care recipient and the approved provider, in writing, of the Secretary's decision on whether to make the determination. The notice must be given:

  (a)   if an application for a determination was made under subsection   ( 5)--within 28 days after the application was made, or, if the Secretary requested further information in relation to the application, within 28 days after receiving the information; or

  (b)   if such an application was not made--within 28 days after the decision is made.

  (7)   A determination under subsection   ( 2) is not a legislative instrument.

48 - 9   Other supplements

  (1)   The other supplements for the care recipient under step 4 of the home care subsidy calculator are such of the following supplements as apply to the care recipient in respect of the * payment period:

  (a)   the hardship supplement (see section   48 - 10 );

  (b)   any other supplement set out in the Subsidy Principles for the purposes of this paragraph.

  (2)   The Subsidy Principles may specify, in respect of each other supplement set out for the purposes of paragraph   ( 1)(b), the circumstances in which the supplement will apply to a care recipient in respect of a * payment period.

  (3)   The Minister may determine by legislative instrument, in respect of each such other supplement, the amount of the supplement, or the way in which the amount of the supplement is to be worked out.

48 - 10   The hardship supplement

  (1)   The hardship supplement for the care recipient in respect of the * payment period is the sum of all the hardship supplements for the days during the period on which:

  (a)   the care recipient was provided with home care through the home care service in question; and

  (b)   the care recipient was eligible for a hardship supplement.

  (2)   The care recipient is eligible for a hardship supplement on a particular day if:

  (a)   the Subsidy Principles specify one or more classes of care recipients to be care recipients for whom paying a daily amount of home care fees of more than the amount specified in the Principles would cause financial hardship; and

  (b)   on that day, the care recipient is included in such a class.

The specified amount may be nil.

  (3)   The care recipient is also eligible for a hardship supplement on a particular day if a determination is in force under section   48 - 1 1 in relation to the care recipient.

  (4)   The hardship supplement for a particular day is the amount:

  (a)   determined by the Minister by legislative instrument; or

  (b)   worked out in accordance with a method determined by the Minister by legislative instrument.

  (5)   The Minister may determine different amounts (including nil amounts) or methods based on any matters determined by the Minister by legislative instrument.

48 - 1 1   Determining cases of financial hardship

  (1)   The Secretary may, in accordance with the Subsidy Principles, determine that the care recipient is eligible for a hardship supplement if the Secretary is satisfied that paying a daily amount of home care fees of more than the amount specified in the determination would cause the care recipient financial hardship.

Note:   Refusals to make determinations are reviewable under Part   6.1.

  (2)   In deciding whether to make a determination under this section, and in determining the specified amount, the Secretary must have regard to the matters (if any) specified in the Subsidy Principles. The specified amount may be nil.

  (3)   A determination under this section ceases to be in force at the end of a specified period, or on the occurrence of a specified event, if the determination so provides.

Note:   Decisions to specify periods or events are reviewable under Part   6.1.

  (4)   Application may be made to the Secretary, in the form approved by the Secretary, for a determination under this section. The application may be made by:

  (a)   the care recipient; or

  (b)   an approved provider who is providing, or is to provide, home care to the care recipient.

  (5)   If the Secretary needs further information to determine the application, the Secretary may give to the applicant a notice requesting the applicant to give the further information:

  (a)   within 28 days after receiving the notice; or

  (b)   within such other period as is specified in the notice.

  (6)   The application is taken to have been withdrawn if the information is not given within whichever of those periods applies. The notice must contain a statement setting out the effect of this subsection.

Note:   The period for giving the further information can be extended--see section   96 - 7.

  (7)   The Secretary must notify the care recipient and the approved provider, in writing, of the Secretary's decision on whether to make the determination. The notice must be given:

  (a)   within 28 days after receiving the application; or

  (b)   if the Secretary has requested further information under subsection   ( 5)--within 28 days after receiving the information.

  (8)   If the Secretary makes the determination, the notice must set out:

  (a)   any period at the end of which; or

  (b)   any event on the occurrence of which;

the determination will cease to be in force.

  (9)   A determination under subsection   ( 1) is not a legislative instrument.

48 - 12   Revoking determination s of financial hardship

  (1)   The Secretary may, in accordance with the Subsidy Principles, revoke a determination under section   48 - 1 1.

Note:   Revocations of determinations are reviewable under Part   6.1.

  (2)   Before deciding to revoke the determination, the Secretary must notify the care recipient and the approved provider concerned that revocation is being considered.

  (3)   The notice must be in writing and must:

  (a)   invite the care recipient and the approved provider to make submissions, in writing, to the Secretary within 28 days after receiving the notice; and

  (b)   inform them that if no submissions are made within that period, the revocation takes effect on the day after the last day for making submissions.

  (4)   In making the decision whether to revoke the determination, the Secretary must consider any submissions received within the period for making submissions. The Secretary must make the decision within 28 days after the end of that period.

  (5)   The Secretary must notify, in writing, the care recipient and the approved provider of the decision.

  (6)   The notice must be given to the care recipient and the approved provider within 28 days after the end of the period for making submissions.

  (7)   If the notice is not given within that period, the Secretary is taken to have decided not to revoke the determination.

  (8)   A revocation has effect:

  (a)   if the care recipient and the approved provider received notice under subsection   ( 5) on the same day--the day after that day; or

  (b)   if they received the notice on different days--the day after the later of those days.

143   Section   49 - 2 (heading)

Omit " Flexible Care ".

144   Section   49 - 2

Omit " Flexible Care Subsidy Principles. The provisions " , substitute "Subsidy Principles. Provisions".

145   Section   49 - 2 (note)

Omit "Flexible Care".

146   Subparagraph s 50 - 1(1)(b)(ii) and (iii)

Omit "Flexible Care".

147   Subsection 50 - 2(1)

Omit "Flexible Care".

148   Subsections 51 - 1(1) and (2)

Omit "Flexible Care".

149   After Chapter   3

Insert:

Chapter   3A -- Fees and p ayments

 

Division   52A -- Introduction

52A - 1   What this Chapter is about

Care recipients contribute to the cost of their care by paying resident fees or home care fees (see Part   3A.1).

Care recipients may pay for, or contribute to the cost of, accommodation provided with residential care or eligible flexible care by paying an * accommodation payment or an * accommodation contribution (see Part   3A.2).

Accommodation payments or accommodation contributions may be paid by:

  * daily payment s ; or

  * refundable deposit; or

  a combination of refundable deposit and daily payment s .

Rules for managing refundable deposits, * accommodation bonds and * entry contributions are set out in Part   3A.3. Accommodation bonds and entry contributions are paid under the Aged Care (Transitional Provisions) Act 1997 .

Part   3A.1 -- Resident and home care fees

Division   52B -- Introduction

52B - 1   What this Part is about

Care recipients may pay, or contribute to the cost of, residential care and home care by paying resident fees or home care fees.

Table of Divisions

52B   Introduction

52C   Resident fees

52D   Home care fees

52B - 2   The Fees and Payments Principles

    Resident fees and home care fees are also dealt with in the Fees and Payments Principles. Provisions in this Part indicate when a particular matter is or may be dealt with in these Principles.

Note:   The Fees and Payments Principles are made by the Minister under section   96 - 1.

Division   52C -- Resident fees

52C - 2   Rules relating to resident fees

  (1)   Fees charged to a care recipient for, or in connection with, residential care provided to the care recipient through a residential care service are resident fees .

  (2)   The following apply:

  (a)   subject to section   52C - 5, the resident fee in respect of any day must not exceed the sum of:

  (i)   the maximum daily amount worked out under section   52C - 3; and

  (ii)   such other amounts as are specified in, or worked out in accordance with, the Fees and Payment s Principles;

  (b)   the care recipient must not be required to pay resident fees more than one month in advance;

  (c)   the care recipient must not be required to pay resident fees for any period prior to * entry to the residential care service, other than for a period in which the care recipient is, because of subsection 42 - 3(3), taken to be on * leave under section   42 - 2;

  (d)   if the care recipient dies or departs from the service--any fees paid in advance in respect of a period occurring after the care recipient dies or leaves must be refunded in accordance with the Fees and Payment s Principles.

52C - 3   Maximum daily amount of resident fees

  (1)   The maximum daily amount of resident fees payable by the care recipient is the amount worked out as follows:

Resident fee calculator

Step 1.   Work out the * standard resident contribution for the care recipient using section   52C - 4.

Step 2.   Add the compensation payment fee (if any) for the care recipient for the day in question (see subsection   ( 2)).

Step 3.   Add the means tested care fee (if any) for the care recipient for that day (see subsection   ( 3)).

Step 4.   Subtract the amount of any hardship supplement applicable to the care recipient for the day in question under section   44 - 30.

Step 5.   Add any other amounts agreed between the care recipient and the approved provider in accordance with the Fees and Payment s Principles.

Step 6.   If, on the day in question, the * place in respect of which residential care is provided to the care recipient has * extra service status, add the extra service fee in respect of the place.

The result is the maximum daily amount of resident fees for the care recipient.

  (2)   The compensation payment fee for a care recipient for a particular day is the amount equal to the compensation payment reduction applicable to the care recipient on that day (see section s   44 - 20 and 44 - 20A ).

  (3)   The means tested care fee for a care recipient for a particular day is:

  (a)   the amount equal to the care subsidy reduction applicable to the care recipient on that day (see section s   44 - 21 and 44 - 23 ); or

  (b)   if the care recipient is receiving respite care--zero.

52C - 4   The standard resident contribution

    The standard resident contribution for a care recipient is:

  (a)   the amount determined by the Minister by legislative instrument; or

  (b)   if no amount is determined under paragraph   ( a) for the care recipient--the amount obtained by rounding down to the nearest cent the amount equal to 85% of the * basic age pension amount (worked out on a per day basis).

52C - 5   Maximum daily amount of resident fees for reserving a place

    If:

  (a)   a care recipient is absent from a residential care service on a particular day; and

  (b)   the person is not on * leave from the residential care service on that day because of the operation of paragraph 42 - 2(3)(c) ;

the maximum fee in respect of a day that can be charged for reserving a place in the residential care service for that day is the sum of the following amounts:

  (c)   the maximum daily amount under section   52C - 3 that would have been payable by the care recipient if the care recipient had been provided with residential care through the residential care service on that day;

  (d)   the amount that would have been the amount of * residential care subsidy under Division   44 for the care recipient in respect of that day, if the care recipient had been provided with residential care through the residential care service on that day.

Division   52D -- Home care fees

52D - 1   Rules relating to home care fees

  (1)   Fees charged to a care recipient for, or in connection with, home care provided to the care recipient through a home care service are home care fees .

  (2)   The following apply:

  (a)   the home care fee in respect of any day must not exceed the sum of:

  (i)   the maximum daily amount worked out under section   52D - 2; and

  (ii)   such other amounts as are specified in, or worked out in accordance with, the Fees and Payment s Principles;

  (b)   the care recipient must not be required to pay home care fees more than one month in advance;

  (c)   the care recipient must not be required to pay home care fees for any period prior to being provided with the home care;

  (d)   if the care recipient dies or provision of home care ceases--any fees paid in advance in respect of a period occurring after the care recipient's death, or the cessation of home care, must be refunded in accordance with the Fees and Payments Principles.

52D - 2   Maximum daily amount of home care fees

  (1)   The maximum daily amount of home care fees payable by the care recipient is the amount worked out as follows:

Home care fee calculator

Step 1.   Work out the basic daily care fee using section   52D - 3.

Step 2.   Add the compensation payment fee (if any) for the care recipient for the day in question (see subsection   ( 2)).

Step 3 .   Add the income tested care fee (if any) for the care recipient for the day in question (see subsection   ( 3)) .

Step 4 .   Subtract the amount of any hardship supplement applicable to the care recipient for the day in question under section   48 - 10 .

Step 5 .   Add any other amounts agreed between the care recipient and the approved provider in accordance with the Fees and Payments Principles.

The result is the maximum daily amount of home care fees for the care recipient.

  (2)   The compensation payment fee for a care recipient for a particular day is the amount equal to the compensation payment reduction applicable to the care recipient on that day (see section s   48 - 5 and 48 - 6 ).

  (3 )   The income tested care fee for a care recipient for a particular day is the amount equal to the care subsidy reduction applicable to the care recipient on that day (see section s   48 - 7 and 48 - 8 ).

52D - 3   The basic daily care fee

    The basic daily care fee for a care recipient is:

  (a)   the amount determined by the Minister by legislative instrument; or

  (b)   if no amount is determined under paragraph   ( a) for the care recipient--the amount obtained by rounding down to the nearest cent the amount equal to 17.5% of the * basic age pension amount (worked out on a per day basis).

Part   3A.2 -- Accommodation payments and accommodation contributions

Division   52E -- Introduction

52E - 1   What this Part is about

Care recipients may pay for, or contribute to the cost of, accommodation provided with residential care or eligible flexible care by paying an * accommodation payment or an * accommodation contribution.

Accommodation payment s or accommodation contribution s may be paid by:

  * daily payment s ; or

  * refundable deposit; or

  a combination of refundable deposit and daily payment s .

Table of Divisions

52E   Introduction

52F   Accommodation agreements

52G   Rules about accommodation payments and accommodation contributions

52H   Rules about daily payment s

52J   Rules about refundable deposits

52K   Financial hardship

52E - 2   The Fees and Payments Principles

    * Accommodation payments and * accommodation contributions are also dealt with in the Fees and Payments Principles. Provisions in this Part indicate when a particular matter is or may be dealt with in these Principles.

Note:   The Fees and Payments Principles are made by the Minister under section   96 - 1.

Division   52F -- Accommodation agreements

52F - 1   Information to be given before person enters residential or eligible flexible care

  (1)   Before a person enters a residential care service or an * eligible flexible care service, the provider of the service must:

  (a)   give the person:

  (i)   an * accommodation agreement; and

  (ii)   such other information as is specified in the Fees and Payments Principles; and

  (b)   agree with the person, in writing, about the maximum amount that would be payable if the person paid an * accommodation payment for the service.

Note:   Whether or not a person pays an accommodation payment depend s on their means tested amount, which may not be worked out before they enter the service.

  (2)   A flexible care service is an eligible flexible care service if the service is permitted, under the Fees and Payments Principles, to charge * accommodation payments.

52F - 2   Approved provider must enter accommodation agreement

  (1)   An approved provider must enter into an * accommodation agreement with a person:

  (a)   before, or within 28 days after, the person enters the provider's service; or

  (b)   within that period as extended under subsection   ( 2).

  (2)   If, within 28 days after the person (the care recipient ) enters the service:

  (a)   the approved provider and the care recipient have not entered into an * accommodation agreement; and

  (b)   a process under a law of the Commonwealth, a State or a Territory has begun for a person (other than an approved provider) to be appointed, by reason that the care recipient has a mental impairment, as the care recipient's legal representative;

the time limit for entering into the agreement is extended until the end of 7 days after:

  (c)   the appointment is made; or

  (d)   a decision is made not to make the appointment; or

  (e)   the process ends for some other reason;

or for such further period as the Secretary allows, having regard to any matters specified in the Fees and Payments Principles.

52F - 3   Accommodation agreements

  (1)   The * accommodation agreement must set out the following:

  (a)   the person's date (or proposed date) of * entry to the service;

  (b)   that the person will pay an * accommodation payment if:

  (i)   the person's * means tested amount at the date of entry is equal to, or greater than, the * maximum accommodation supplement amount for that day ; or

  (ii)   the person does not provide sufficient information to allow the person's means tested amount to be worked out;

  (c)   that, if the person's means tested amount at the date of entry is less than the maximum accommodation supplement amount for that day , the person may pay an * accommodation contribution, depending on the person's mean s tested amount;

  (d)   that a determination under section   52K - 1 (financial hardship) may reduce the accommodation payment or accommodation contribution, including to nil;

  (e)   that, within 28 days after the date of entry, the person must choose to pay the accommodation payment or accommodation contribution (if payable) by:

  (i)   * daily payment s ; or

  (ii)   * refundable deposit; or

  (iii)   a combination of refundable deposit and daily payment s ;

  (f)   that, if the person does not choose how to pay within those 28 days, the person must pay by daily payment s ;

  (g)   that, if the person chooses to pay a refundab le deposit within those 28 days:

  (i)   the person will not be required to pay the refundable deposit until 6 months after the date of entry; and

  (ii)   daily payment s must be paid until the refundable deposit is paid;

  (h)   the amounts that are permitted to be deducted from a refundable deposit;

  (i)   the circumstances in which a refundable deposit balance must be refunded;

  (j)   any other conditions relating to the payment of a refundable deposit;

  (k)   such other matters as are specified in the Fees and Payments Principles.

  (2)   In relation to an * accommodation payment, the agreement must set out the following:

  (a)   the amount of * daily accommodation payment that would be payable, as agreed under paragraph 52F - 1(1)(b);

  (b)   the amount of * refundable accommodation deposit that would be payable if no daily accommodation payment s were paid;

  (c)   the method for working out amounts that would be payable as a combination of refundable accommodation deposit and daily accommodation payment s ;

  (d)   that, if the person pays a refundable accommodation deposit , the approved provider :

  (i)   must, at the person's request, deduct daily accommodation payment s for the person from the refundable accommodation deposit ; and

  (ii)   may require the person to maintain the agreed accommodation payment if the refundable accommodation deposit is reduced;

  (e)   that, if the person is required to maintain the agreed accommodation payment because the refundable accommodation deposit has been reduced, the person may do so by:

  (i)   paying daily accommodation payment s or increased daily accommodation payment s ; or

  (ii)   topping up the refundable accommodation deposit ; or

  (ii)   a combination of both.

  (3)   In relation to an * accommodation contribution, the agreement must set out the following:

  (a)   that the amount of accommodation contribution for a day will not exceed the amount assessed for the person based on the person's * means tested amount;

  (b)   that the amount of accommodation contribution payable will vary from time to time depending on:

  (i)   the * accommodation supplement applicable to the service; and

  (ii)   the person's means tested amount;

  (c)   the method for working out amounts that would be payable by :

  (i)   * refundable accommodation contribution; or

  (ii)   a combination of * refundable accommodation contribution and * daily accommodation contribution s ;

  (d)   that, if the person pays a refundable accommodation contribution, the approved provider:

  (i)   must, at the person's request, deduct daily accommodation contributions for the person from the refundable accommodation contribution ; and

  (ii)   may require the person to maintain the accommodation contribution that is payable if the refundable accommodation contribution is reduced;

  (e)   that, if the person is required to maintain the accommodation contribution because the refundable accommodation contribution has been reduced, the person may do so by:

  (i)   paying * daily accommodation contributions or increased daily accommodation contributions; or

  (ii)   paying or topping up a * refundable accommodation contribution; or

  (ii)   a combination of both;

  (f)   that, if the amount of accommodation contribution that is payable increases, the approved provider may require the person to pay the increase;

  (g)   that, if the person is required to pay the increase, the person may do so by:

  (i)   paying daily accommodation contribution s or increased daily accommodation contribution s ; or

  (ii)   paying or topping up a refundable accommodation contribution; or

  (ii)   a combination of both.

52F - 4   Refundable deposit not to be required for entry

    The approved provider must not require the person to choose how to pay an * accommodation payment or * accommodation contribution before the person * enters the service.

52F - 5   Accommodation agreements for flexible care

    If the * accommodation agreement is for a flexible care service, the accommodation agreement is not required to deal with the matters in section   52F - 3 to the extent that they relate to * accommodation contributions.

52F - 6   Accommodation agreements may be included in another agreement

    The * accommodation agreement may be included in another agreement.

Note:   For example, an accommodation agreement could be part of a resident agreement.

52F - 7   Effect of accommodation agreements

    The * accommodation agreement has effect subject to this Act, and any other law of the Commonwealth.

Division   52G -- Rules about accommodation payments and accommodation contributions

52G - 1   What this Division is about

* Accommodation payment s and * accommodation contribution s may be cha rged only in accordance with this Division.

Rules about * daily payment s and * refundable deposits are set out in Divisions   52H and 52J.

Table of Subdivisions

52G - A   Rules about accommodation payments

52G - B   Rules about accommodation contributions

Subdivision   52G - A -- Rules about accommodation payments

52G - 2   Rules about charging accommodation payments

    The rules for charging * accommodation payment for a residential care service or * eligible flexible care service are as follows:

  (a)   a person must not be charged an accommodation payment unless:

  (i)   the person's * means tested amount, at the date the person * enters the service, is equal to or greater than the * maximum accommodation supplement amount for that day ; or

  (ii)   the person has not provided sufficient information to allow the person's means tested amount to be worked out;

  (b)   an accommodation payment must not be charged for * respite care;

  (c)   an accommodation payment must not exceed the maximum amount determined by the Minister under section   52G - 3, or such higher amount as approved by the * Aged Care Pricing Commissioner under section   52G - 4;

  (d)   accommodation payment must not be charged:

  (i)   if it is prohibited under Part   4.4 (see paragraph 66 - 1(j)); or

  (ii)   for a residential care service that is not * certified;

  (e)   an approved provider must comply with:

  (i)   the rules set out this Division; and

  (ii)   any rules about charging accommodation payments specified in the Fees and Payments Principles.

52G - 3   Minister may determine maximum amount of accommodation payment

  (1)   The Minister may, by legislative instrument, determine the maximum amount of * accommodation payment that an approv ed provider may charge a person .

  (2)   The determination may set out:

  (a)   the maximum * daily accommodation payment amount and a method for working out * refundable accommodation deposit amounts; or

  (b)   methods for working out both :

  (i )   the maximum daily accommodation payment amount ; and

  (ii )   r efundable accommodation deposit amounts .

  (3 )   The approved provider may charge less than the maximum amount.

52G - 4   Aged Care Pricing Commissioner may approve higher maximum amount of accommodation payment

  (1)   An * approved provider may apply to the * Aged Care Pricing Commissioner for approval to charge an * accommodation payment that is higher than the maximum amount of accommodation payment determined by the Minister under section   52G - 3 for:

  (a)   a residential care service or flexible care service; or

  (b)   a * distinct part of such a service.

  (2)   The application:

  (a)   must comply with the requirements set out in the Fees and Payments Principles; and

  (b)   must not be made:

  (i)   within the period specified in Fees and Payments Principles after the * Aged Care Pricing Commissioner last made a decision under this section in relation to the service, or the part of the service; or

  (ii)   if no period is specified-- with in 12 months after th at last decision.

  (3)   If the * Aged Care Pricing Commissioner needs further information to determine the application, the Commissioner may give to the applicant a notice requiring the applicant to give the further information:

  (a)   within 28 days after the notice is given; or

  (b)   within such other period as is specified in the notice.

  (4)   The application is taken to have been withdrawn if the information is not given within whichever of those periods applies. The notice under subsection   ( 3) must contain a statement setting out the effect of this subsection.

  (5)   The * Aged Care Pricing Commissioner may, in writing and in accordance with the Fees and Payments Principles, approve the higher maximum amount of * accommodation payment specified in the application.

Note:   A decision not to approve a higher maximum amount of accommodation payment is reviewable under Part   6.1.

  (6)   If the * Aged Care Pricing Commissioner approves the higher maximum amount of * accommodation payment, the amount applies only in relation to a person:

  (a)   who at the date of approval has not entered into an * accommodation agreement with the approved provider; and

  (b)   whose * entry to the service occurs on or after the date of the approval.

  (7)   An approval under subsection   ( 5) is not a legislative instrument.

52G - 5   Accommodation payments must not be greater than amounts set out in accommodation agreements

    An approved provider must not accept a payment that would result in a person paying an amount of * accommodation payment that is greater than the amount set out in the person's * accommodation agreement.

Subdivision   52G - B -- Rules about accommodation contributions

52G - 6   Rules about charging accommodation contribution

    The rules for charging * accommodation contribution for a residential care service are as follows:

  (a)   a person must not be charged an accommodation contribution unless the person's * means tested amount, at the date the person * enters the service, is less than the * maximum accommodation supplement amount for that day ;

  (b)   an accommodation contribution must not be charged for * respite care;

  (c)   the amount of accommodation contribution for a day must not exceed :

  (i)   the accommodation supplement applicable to the service for the day; or

  (ii)   the amount assessed for the person based on the person's means tested amount;

  (d)   accommodation contribution must not be charged:

  (i)   if it is prohibited under Part   4.4 (see paragraph 66 - 1(j)); or

  (ii)   for a residential care service that is not * certified;

  (e)   an approved provider must comply with:

  (i)   the rules set out in this Division; and

  (ii)   any rules about charging accommodation contributions specified in the Fees and Payments Principles.

Note:   A person who does not provide sufficient information to allow the person's means tested amount to be worked out will be charged an accommodation payment: see paragraph 52G - 2(a).

Division   52H -- Rules about daily payment s

52H - 1   Payment in advance

    A person must not be required to pay a * daily payment more than 1 month in advance.

52H - 2   When daily payment s accrue

  (1)   A * d aily payment does not accrue for any day after the provision of care to the person ceases.

  (2)   A * d aily payment does not accrue for a residential care service for any day during which the residential care service is not * certified.

52H - 3   Charging interest

  (1)   A person may be charged interest on the balance of any amount of * daily payment that:

  (a)   is payable by the person; and

  (b)   has been outstanding for more than 1 month.

  (2)   Subsection   ( 1) does not apply unless the person's * accommodation agreement provides for the charging of such interest at a specified rate.

  (3)   However, the rate charged must not exceed the maximum rate determined by the Minister under subsection   ( 4).

  (4)   The Minister may, by legislative instrument, determine the maximum rate of interest that may be charged on an outstanding amount of * daily payment.

52H - 4   The Fees and Payments Principles

    The Fees and Payments Principles may specify:

  (a)   when * daily payment s are to be made; and

  (b)   any other matter relating to the payment of daily payment s .

Division   52J -- Rules about refundable deposits

52J - 2   When refundable deposits can be paid

  (1)   A person may choose to pay a * refundable deposit at any time after the person has entered into an * accommodation agreement.

  (2)   A person may increase the amount of a * refundable deposit at any time after the person has paid the refundable deposit.

Note:   A person cannot overpay a refundable deposit: see section   52G - 5 and paragraph 52G - 6(c).

  (3)   This section has effect despite paragraphs 52F - 3(1)(e) and (f).

Note:   For rules relating to the management of refundable deposits, see Part   3A.3.

52J - 3   The Fees and Payments Principles

    The Fees and Payments Principles may specify:

  (a)   how a choice to pay a * refundable deposit is to be made; and

  (b)   any other matter relating to the payment of refundable deposits.

52J - 4   Residential care services that are not certified

Entering a service that is not certified

  (1)   The provider of a residential care service that is not * certified must not require payment of a * refundable deposit:

  (a)   before the end of the period specified in the Fees and Payments Principles after the service is certified; or

  (b)   if no period is specified--before the end of 6 months after the service is certified.

Certification of service is revoked

  (2)   If a person pays a * refundable deposit for a residential care service and the * certification of the service is later revoked, the provider of the service must pay the person interest, in accordance with the Fees and Payments Principles, on the * refundable deposit balance for each day that the service is not certified.

52J - 5   Person must be left with minimum assets

  (1)   An approved provider must not accept payment of an amount of * refundable deposit from a person if :

  (a)   the person provides sufficient information to allow the person's * means tested amount to be worked out; and

  (b)   the person pays, or commits to paying, the amount within 28 days after entering the service; and

  (c)   payment of the amount would leave the value of the person's remaining assets at less than the * minimum permissible asset value.

  (2)   The minimum permissible asset value is:

  (a)   the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) the amount equal to 2.25 times the * basic age pension amount at the time the person * enters the residential care service or flexible care service; or

  (b)   such higher amount as is specified in, or worked out in accordance with, the Fees and Payments Principles.

  (3)   The value of a person's assets is to be worked out :

  (a)   in the same way as it would be worked out under section   44 - 26A for the purposes of section   44 - 22; but

  (b)   disregarding subsection 44 - 26A ( 7 ) .

52J - 6   Approved provider may retain income derived

    An approved provider may retain income derived from a * refundable deposit.

52J - 7   Amounts to be deducted from refundable deposits

  (1)   An approved provider must deduct a * daily payment from a * refundable deposit paid by a person if:

  (a)   the person has requested the deduction in writing; and

  (b)   the daily payment is payable by the person.

  (2)   An approved provider may deduct the following from a * refundable deposit paid by a person:

  (a)   the amounts specified in the Fees and Payments Principles that may be deducted when the person leaves the service;

  (b)   any amounts that the person has agreed in writing may be deducted;

  (c)   such other amounts (if any) as are specified in the Fees and Payments Principles.

  (3)   The approved provider must not deduct any other amount from a * refundable deposit.

Division   52K -- Financial hardship

52K - 1   Determining cases of financial hardship

  (1)   The Secretary may, in accordance with the Fees and Payments Principles, determine that a person must not be charged an * accommodation payment or * accommodation contribution more than the amount specified in the determination because payment of more than that amount would cause the person financial hardship .

Note:   Refusals to make determinations are reviewable under Part   6.1.

  (2)   In deciding whether to make a determination under this section, and in determining the specified amount, the Secretary must have regard to the matters (if any) specified in the Fees and Payments Principles. The specified amount may be nil.

  (3)   The determination ceases to be in force at the end of a specified period or on the occurrence of a specified event, if the determination so provides.

Note:   Decisions to specify periods or events are reviewable under Part   6.1.

  (4)   Application may be made to the Secretary, in the form approved by the Secretary, for a determination under this section. The application may be made by:

  (a)   a person who is liable to pay an * accommodation payment or * accommodation contribution; or

  (b)   the approved provider to whom an accommodation payment or accommodation contribution is payable.

  (5)   If the Secretary needs further information to determine the application, the Secretary may give to the applicant a notice requesting the applicant to give the further information:

  (a)   within 28 days after receiving the notice; or

  (b)   within such other period as is specified in the notice.

  (6)   The application is taken to have been withdrawn if the information is not given within whichever of those periods applies. The notice must contain a statement setting out the effect of this subsection.

Note:   The period for giving the further information can be extended--see section   96 - 7.

  (7)   The Secretary must notify the person and the approved provider, in writing, of the Secretary's decision on whether to make the determination. The notice must be given:

  (a)   within 28 days after receiving the application; or

  (b)   if the Secretary has requested further information under subsection   ( 5)--within 28 days after receiving the information.

  (8)   If the Secretary makes the determination, the notice must set out:

  (a)   any period at the end of which; or

  (b)   any event on the occurrence of which;

the determination will cease to be in force.

  (9)   A determination under subsection   ( 1) is not a legislative instrument.

52K - 2   Revoking determination s of financial hardship

  (1)   The Secretary may, in accordance with the Fees and Payments Principles, revoke a determination under section   52K - 1 .

Note:   Revocations of determinations are reviewable under Part   6.1.

  (2)   Before deciding to revoke the determination, the Secretary must notify the person and the approved provider concerned that revocation is being considered.

  (3)   The notice must be in writing and must:

  (a)   invite the person and the approved provider to make submissions, in writing, to the Secretary within 28 days after receiving the notice; and

  (b)   inform them that if no submissions are made within that period, the revocation takes effect on the day after the last day for making submissions.

  (4)   In making the decision whether to revoke the determination, the Secretary must consider any submissions received within the period for making submissions. The Secretary must make the decision within 28 days after the end of that period.

  (5)   The Secretary must notify, in writing, the person and the approved provider of the decision.

  (6)   The notice must be given to the person and the approved provider within 28 days after the end of the period for making submissions.

  (7)   If the notice is not given within that period, the Secretary is taken to have decided not to revoke the determination.

  (8)   A revocation has effect:

  (a)   if the person and the approved provider received notice under subsection   ( 5) on the same day--the day after that day; or

  (b)   if they received the notice on different days--the day after the later of those days.

Part   3A.3 -- Managing refundable deposits , accommodation bonds and entry contributions

Division   52L -- Introduction

52 L - 1   What this Part is about

* Refundable deposits, * accommodation bonds and * entry contributions must be managed in accordance with the prudential requirements made under Division   52M and the rules set out in Division   52N (permitted uses) and Division   52P (refunds).

Table of Divisions

52 L   Introduction

52 M   Prudential requirements

52N   Permitted use s

52P   Refunds

Division   52M -- Prudential requirements

52M - 1   Compliance with prudential requirements

  (1)   An * approved provider must comply with the Prudential Standards.

  (2)   The Fees and Payments Principles may set out Prudential Standards providing for:

  (a)   protection of * refundable deposit balances, * accommodation bond balances and * entry contribution balances of care recipients ; and

  (b)   sound financial management of approved providers; and

  (c)   provision of information about the financial management of approved providers.

Division   52N -- Permitted use s

52 N - 1   Refundable deposit s and accommodation bonds to be used only for permitted purposes

  (1)   An approved provider must not use a * refundable deposit or * accommodation bond unless the use is permitted.

Permitted use--general

  (2)   An approved provider is permitted to u se a * refundable deposit or * accommodation bond for the following :

  (a)   for capital expenditure of a kind specified in the Fees and Payments Principles and in accordance with any requirements s pecified in those Principles;

  (b)   to invest in a financial produ ct covered by subsection   ( 3);

  (c)   to make a loan in relation to which the following conditions are satisfied:

  (i)   the loan is not made to an individual;

  (ii)   the loan is made on a commercial basis;

  (iii)   there is a written agreement in relation to the loan;

  (iv)   it is a condition of the agreement that the money loaned will only be used as mentioned in paragraph   ( a) or (b);

  (v)   the agreement includes any other conditions specified in the Fees and Payments Principles;

  (d)   to refund , or to repay debt accrued for the purposes of refunding, * refundable deposit balances, * accommodation bond balances or * entry contribution balances;

  (e)   to repay debt accrued for the purposes of capital expenditure of a kind specified in the Fees and Payments Principles;

  (f)   to repay debt that is accrued before 1   October 2011, if the debt is accrued for the purposes of providing * aged care to care recipients;

  (g)   for a use permitted by the Fees and Payments Principles.

Note :   An approved provider, and the approved provider's key personnel, may commit an offence if the approved provider uses a refundable deposit or accommodation bond otherwise than for a permitted use (see section   52N - 2 ).

Permitted use--financial products

  (3)   For the purposes of paragraph   ( 2)(b), the following are financial products (within the meaning of section   764A of the Corporations Act 2001 ) covered by this subsection:

  (a)   any deposit - taking facility made available by an ADI in the course of its banking business (within the meaning of the Banking Act 1959 ), other than an RSA within the meaning of the Retirement Savings Accounts Act 1997 ;

Note 1:   ADI is short for authorised deposit - taking institution.

Note 2:   RSA is short for retirement savings account.

  (b)   a debenture, stock or bond issued or proposed to be issued by the Commonwealth, a State or a Territory;

  (c)   a security, other than a security of a kind specified in the Fees and Payments Principles;

  (d)   any of the following in relation to a registered scheme:

  (i)   an interest in the scheme;

  (ii)   a legal or equitable right or interest in an interest covered by subparagraph   ( i);

  (iii)   an option to acquire, by way of issue, an interest or right covered by subparagraph   ( i) or (ii);

  (e)   a financial product specified in the Fees and Payments Principles.

Permitted uses specified in Fees and Payments Principles

  (4)   Without limiting paragraph   ( 2 )(g), the Fees and Payments Principles may specify that a use of a * refundable deposit or * accommodation bond is only permitted for the purposes of that paragraph if:

  (a)   specified circumstances apply; or

  (b)   the approved provider complies with conditions specified in, or imposed in accordance with, the Fees and Payments Principles.

Note:   For paragraph   ( 4)(a), the Fees and Payments Principles might, for example, specify that the use of a * refundable deposit is only permitted if the approved provider obtains the prior consent of the Secretary to the use of the deposit.

52 N - 2   Offences relating to non - permitted use of refundable deposits and accommodation bonds

Offence for approved provider

  (1)   A * corporation commits an offence if:

  (a)   the corporation is or has been an approved provider; and

  (b)   the corporation uses a * refundable deposit or * accommodation bond ; and

  (c)   the use of the deposit or bond is not * permitted; and

  (d)   both of the following apply at a particular time during the period of 2 years after the use of the deposit or bond :

  (i)   an insolvency event (within the meaning of the Aged Care (Accommodation Payment Security) Act 20 06 ) has occurred in relation to the corporation;

  (i i)   there has been at least one outstanding accommodation payment balance (within the meaning of that Act) for the corporation.

Penalty:   300 penalty units.

Note:   The Secretary must make a default event declaration under the Aged Care ( Accommodation Payment Security) Act 2006 in relation to the corporation if paragraph   ( d) of this subsection applies (see section   10 of that Act).

Offence for key personnel

  (2)   An individual commits an offence if:

  (a)   the individual is one of the * key personnel of an entity that is or has been an approved provider; and

  (b)   the entity uses a * refundable deposit or * accommodation bond ; and

  (c)   the use of the deposit or bond is not * permitted; and

  (d)   the individual knew that, or was reckless or negligent as to whether:

  (i)   the deposit or bond would be used; and

  (ii)   the use of the deposit or bond was not permitted; and

  (e)   the individual was in a position to influence the conduct of the entity in relation to the use of the deposit or bond ; and

  (f)   the individual failed to take all reasonable steps to prevent the use of the deposit or bond ; and

  (g)   both of the following apply at a particular time during the period of 2 years after the use of the deposit or bond :

  (i)   an insolvency event (within the meaning of the Aged Care ( Accommodation Payment Security ) Act 20 06 has occurred in relation to the entity;

  (ii)   there has been at least one outstanding accommodation payment balance (within the meaning of that Act) for the entity; and

  (h)   at the time the deposit or bond was used, the entity was a * corporation.

Penalty:   Imprisonment for 2 years.

Strict liability

  (3)   Strict liability applies to paragraphs   ( 1)(d) and (2)(g) and (h).

Note:   For strict liability, see section   6.1 of the Criminal Code .

Division   52P -- Refunds

52P - 1   Refunding refundable deposit balances

  (1)   In this section:

"refundable deposit" includes an * accommodation bond.

"refundable deposit balance" includes an * accommodation bond balance.

  (2 )   If a * refundable deposit is paid for care provided by , or for * entry to, a residential care service or flexible care service, the * refundable deposit balance must be refunded if:

  (a)   the person who paid the deposit (the care recipient ) dies; or

  (b)   the care recipient ceases to be provided with:

  (i)   residential care by the residential care service (other than because the care recipient is on * leave); or

  (ii)   flexible care provided in a residential setting by the flexible care service.

  (3 )   The * refundable deposit balance must be refunded in the way specified in the Fees and Payments Principles.

  (4 )   The * refundable deposit balance must be refunded:

  (a)   if the care recipient dies--within 14 days after the day on which the provider is shown the probate of the will of the care recipient or letters of administration of the estate of the care recipient; or

  (b)   if the care recipient is to * enter another service to receive residential care:

  (i)   if the care recipient has notified the provider of the move more than 14 days before the day on which the provider ceased providing care to the care recipient--on the day on which the provider ceased providing that care; or

  (ii)   if the care recipient so notified the provider within 14 days before the day on which the provider ceased providing that care--within 14 days after the day on which the notice was given; or

  (iii)   if the care recipient did not notify the provider before the day on which the provider ceased providing that care--within 14 days after the day on which the provider ceased providing that care; or

  (c)   in any other case--within 14 days after the day on which the event referred to in paragraph   ( 2 )(b) happened.

52P - 2   Refunding refundable deposit balances --former approved providers

  (1)   In this section:

"refundable deposit" includes an * accommodation bond.

"refundable deposit balance" includes an * accommodation bond balance.

  ( 2 )   If:

  (a)   a * refundable deposit is paid to a person for care provided by , or * entry to, a residential care service or flexible care service; and

  (b)   the person ceases to be an approved provider in respect of the residential care service or flexible care service;

the person (the former approved provider ) must refund the * refundable deposit balance to the person who paid the deposit (the care recipient ) .

  (3 )   The * refundable deposit balance must be refunded under subsection   ( 2 ):

  (a)   if the care recipient dies within 90 days after the day on which the former approved provider ceased to be an approved provider in respect of the residential care service or flexible care service (the 90 day period )--within 14 days after the day on which the former approved provider is shown the probate of the will of the care recipient or letters of administration of the estate of the care recipient; or

  (b)   if the care recipient is to * enter another service to receive residential care within the 90 day period:

  (i)   if the care recipient has notified the former approved provider of the move more than 14 days before the day on which the former approved provider ceased providing care to the care recipient--on the day on which the former approved provider ceased providing that care; or

  (ii)   if the care recipient so notified the former approved provider within 14 days before the day on which the former approved provider ceased providing that care--within 14 days after the day on which the notice was given; or

  (iii)   if the care recipient did not notify the former approved provider before the day on which the former approved provider ceased providing that care--within 14 days after the day on which the former approved provider ceased providing that care; or

  (c)   in any other case--within the 90 day period.

  (4 )   A person commits an offence if:

  (a)   the person is required under this section to refund an amount on a particular day or within a particular period; and

  (b)   the person does not refund the amount before that day or within that period; and

  (c)   the person is a * corporation.

Penalty for a contravention of this subsection: 30 penalty units.

52P - 3   Payment of interest

  (1)   The Fees and Payments Principles may specify circumstances in which interest is to be paid in relation to the refund of :

  (a)   a * refundable deposit balance ; or

  (b)   an * accommodation bond balance; or

  (c)   an * entry contribution balance .

  (2)   The amount of interest is to be worked out in accordance with the Fees and Payments Principles.

52P - 4   Delaying refunds to secure re - entry

  (1)   This section applies if a person who has paid a * refundable deposit or * accommodation bond for care provided by, or * entry to, a residential care service or flexible care service:

  (a)   ceases to be provided with residential care by the residential care service (other than because the person is on * leave); or

  (b)   ceases to be provided with flexible care by the flexible care service.

  (2)   The person may agree with the approved provider concerned to delay refunding the * refundable deposit balance or * accommodation bond balance on condition that, if the person requests re - entry to the service , the approved provider must:

  (a)   allow * entry to the person, if:

  (i)   there are any * places vacant in the service; and

  (ii)   in a case where the service is a residential care service--the person has been approved under Part   2.3 as a recipient of residential care; and

  (b)   if the person is allowed entry--apply the * refundable deposit balance or * accommodation bond in payment for the service.

150   Section   53 - 1 (note)

Omit " subsidy is payable under Chapter   3", substitute "subsidy is payable".

151   Paragraph 54 - 1(1)(c)

Omit " 56 - 1(l), 56 - 2(i) or 56 - 3(j)", substitute "56 - 1(m), 56 - 2(k ) or 56 - 3(l )".

152    Paragraph 54 - 1(2)(a)

Omit "subsidy is payable under Chapter   3", substitute " * subsidy is payable".

153   Paragraph s 56 - 1(a) to (m)

Repeal the paragraphs, substitute:

  (a)   if the care recipient is not a * continuing care recipient:

  (i)   to charge no more for provision of the care and services that it is the approved provider's responsibility to provide under paragraph 54 - 1(1)(a) than the amount permitted under Division   52C; and

  (ii)   to comply with the other rules relating to resident fees set out in section   52C - 2; and

  (iii )   to comply with the requirements of Part   3A.2 in relation to any * accommodation payment or * accommodation contribution charged to the car e recipient;

  (b)   if the care recipient is a continuing care recipient:

  (i)   to charge no more for provision of the care and services that it is the approved provider's responsibility to provide under paragraph 54 - 1(1)(a) than the amount permitted under Division   58 of the Aged Care (Transitional Provisions) Act 1997 ; and

  (ii)   to comply with the other rules relating to resident fees set out in section   58 - 1 of the Aged Care (Transitional Provisions) Act 1997 ; and

  (iii)   to comply with Division   57 of the Aged Care (Transitional Provisions) Act 1997 in relation to any * accommodation bond, and Division   57A of that Act in relation to any * accommodation charge, charged to the care recipient;

  (c)   in relation to an * entry contribution given or loaned under a * formal agreement binding the approved provider and the care recipient-- to comply with the requirements of:

  (i)   the Prudential Standards made under section   52M - 1 ; and

  (ii)   the Aged Care (Transitional Provisions) Principles made under the Aged Care (Transitional Provisions) Act 1997 ;

  (d)   to charge no more than the amount permitted under the Fees and Payments Principles by way of a booking fee for * respite care;

  (e)   to charge no more for any other care or services than an amount agreed beforehand with the care recipient, and to give the care recipient an itemised account of the other care or services;

  (f)   to provide such security of tenure for the care recipient's * place in the service as is specified in the User Rights Principles;

  (g)   to comply with the requirements of Division   36 in relation to * extra service agreements;

  (h)   to offer to enter into a * resident agreement with the care recipient, and, if the care recipient wishes, to enter into such an agreement ;

  (i)   to comply with the requirements of Division   62 in relation to * personal information relating to the care recipient;

  (j)   to comply with the requirements of section   56 - 4 in relation to resolution of complaints;

  (k)   to allow people acting for care recipients to have such access to the service as is specified in the User Rights Principles;

  (l)   to allow people acting for bodies that have been paid * advocacy grants under Part   5.5, or * community visitors grants under Part   5.6, to have such access to the service as is specified in the User Rights Principles;

  (m)   not to act in a way which is inconsistent with any rights and responsibilities of care recipients that are specified in the User Rights Principles;

  (n)   such other responsibilities as are specified in the Fees and Payments Principles and the User Rights Principles .

154   Paragraphs 56 - 2(a) to (j)

Repeal the paragraphs, substitute:

  (a)   not to charge for the care recipient's * entry to the service through which the care is, or is to be, provided;

  (b)   if the care recipient is not a * continuing care recipient:

  (i)   to charge no more for provision of the care and services that it is the approved provider's responsibility to provide under paragraph 54 - 1(1)(a) than the amount permitted under Division   52D ; and

  (ii)   to comply with the other rules relating to home care fees set out in section   52D - 1 ;

  (c)   if the care recipient is a continuing care recipient:

  (i)   to charge no more for provision of the care and services that it is the approved provider's responsibility to provide under paragraph 54 - 1(1)(a) than the amount permitted under Division   60 of the Aged Care (Transitional Provisions) Act 1997 ; and

  (ii)   to comply with the other rules relating to resident fees set out in section   60 - 1 of the Aged Care (Transitional Provisions) Act 1997 ;

  (d)   to charge no more for any other care or services than an amount agreed beforehand with the care recipient, and to give the care recipient an itemised account of the other care or services;

  (e)   to provide such other care and services in accordance with the agreement between the approved provider and the care recipient;

  (f)   to provide such security of tenure for the care recipient's * place in the service as is specified in the User Rights Principles;

  (g)   to offer to enter into a * home care agreement with the care recipient, and, if the care recipient wishes, to enter into such an agreement ;

  (h)   to comply with the requirements of Division   62 in relation to * personal information relating to the care recipient;

  (i)   to comply with the requirements of section   56 - 4 in relation to resolution of complaints;

  (j)   to allow people acting for bodies that have been paid * advocacy grants under Part   5.5 to have such access to the service as is specified in the User Rights Principles;

  (k)   not to act in a way which is inconsistent with any rights and responsibilities of care recipients that are specified in the User Rights Principles;

  (l)   such other responsibilities as are specified in the Fees and Payments Principles and the User Rights Principles .

155   Paragraphs 56 - 3(a) to (k)

Repeal the paragraphs, substitute:

  (a)   to charge no more than the amount specified in, or worked out in accordance with, the User Rights Principles, for provision of the care and services that it is the approved provider's responsibility under paragraph 54 - 1(1)(a) to provide;

  (b)   if the care recipient is not a * continuing care recipient--to comply with the requirements of Part   3A.2 in relation to any * accommodation payment charged to the care recipient;

  (c)   if the care recipient is a continuing care recipient:

  (i)   to comply with the requirements of Division   57 of the Aged Care (Transitional Provisions) Act 1997 , and the Aged Care (Transitional Provisions) Principles made under that Act, in relation to any * accommodation bond charged to the care recipient; and

  (ii)   to comp ly with the requirements of those Principles in relation to any * accommodation charge charged to the care recipient;

  (d)   in relation to an * entry contribution given or loaned under a * formal agreement binding the approved provider and the care recipient--to comply with the requirements of:

  (i)   the Prudential Standards made under section   52M - 1; and

  (ii)   the Aged Care (Transitional Provisions) Principles made under the Aged Care (Transitional Provisions) Act 1997 ;

  (e)   to charge no more for any other care or services than an amount agreed beforehand with the care recipient, and to give the care recipient an itemised account of the other care or services;

  (f)   to provide such security of tenure for the care recipient's * place in the service as is specified in the User Rights Principles;

  (g)   to comply with any requirements of the Fees and Payments Principles relating to:

  (i)   offering to enter into an agreement with the care recipient relating to the provision of care to the care recipient; or

  (ii)   entering into such an agreement if the care recipient wishes;

  (h)   to comply with the requirements of Division   62 in relation to * personal information relating to the care recipient;

  (i)   to comply with the requirements of section   56 - 4 in relation to resolution of complaints;

  (j)   to allow people acting for care recipients to have such access to the service as is specified in the User Rights Principles;

  (k)   to allow people acting for bodies that have been paid * advocacy grants under Part   5.5 to have such access to the service as is specified in the User Rights Principles;

  (l)   not to act in a way which is inconsistent with any rights and responsibilities of care recipients that are specified in the User Rights Principles;

  (m)   such other responsibilities as are specified in the Fees and Payments Principles and the User Rights Principles .

156   Paragraph 56 - 5(a)

Omit "subsidy is payable under Chapter   3", substitute " * subsidy is payable".

157   Divisions   57 , 57A and 5 8

Repeal the Divisions.

158   Paragraph 59 - 1(1)(b)

Omit "levels of".

159   Subsection 59 - 1(3) (note)

Omit " * accommodation bond agreement (see section   57 - 10) or * accommodation charge agreement (see section   57A - 4)", substitute "accommodation agreement (see section   52F - 6)".

160   Division   60

Repeal the Division.

161   Subparagraph 62 - 1(b)(ii)

Before " * accommodation bond ", insert " * refundable deposit balance or".

162   Subparagraph 62 - 1(b)(ii)

After "section   57 - 20", insert "of the Aged Care (Transitional Provisions) Act 1997 ".

163   Subparagraph 62 - 1(b)(ii)

After "pay an", insert " * accommodation payment, * accommodation contribution or".

164   S ubparagraph 62 - 1(b)(iv)

Repeal the subparagraph, substitute:

  (iv)   for the purpose of complying with an obligation under this Act or the Aged Care (Transitional Provisions) Act 1997 or any of the Principles made under section   96 - 1 of this Act or the Aged Care (Transitional Provisions) Act 1997 ;

165   Paragraph 63 - 1(2)(a)

Omit "subsidy is payable under Chapter   3", substitute " * subsidy is payable".

166   Sub section 63 - 1AA(9) ( subparagraph   ( b) (i) of the definition of reportable assault )

Omit "subsidy is payable under Chapter   3", substitute " * subsidy is payable".

167   Paragraph 63 - 2(2)(c)

Omit "the Act" , substitute "this Act and the Aged Care (Transitional Provisions) Act 1997 ".

168   After paragraph 63 - 2(2)(c )

Insert:

  (ca )   the amounts of * accommodation payments and * accommodation contributions paid; and

  (cb)   the amounts of those accommodation payments and accommodation contributions paid as * refundable deposits and * daily payments; and

169   Paragraph 66 - 1(c)

Omit " subsidy under Chapter   3 ", substitute " * subsidy ".

170   After p aragraph 66 - 1(i )

Insert:

  (ia)   prohibiting the charging of * accommodation payments or * accommodating contributions for:

  (i)   one or more specified residential care services; or

  (ii)   all residential care services; or

  (iii)   one or more specified flexible care services; or

  (iv)   all flexible care services;

    conducted by the approved provider;

171   After paragraph 66 - 1(j)

Insert :

  (ja)   if the approved provider has charged a care recipient an amount of accommodation payment or accommodation contribution (the excess ) that is more than the amount permitted under Division   52G --requiring the provider to refund to the care recipient an amount equal to the excess (together with an amount representing interest wor ked out in accordance with the Fees and Payments Principles) within the period specified in the notice;

  (jb)   if the approved provider has not refunded a * refundable deposit balance, an * accommodation bond balance or an * entry contribution balance to a care recipient as required under Division   52P --requiring the provider to refund to the care recipient an amount equal to the balance (together with an amount representing interest worked out in accorda nce with the Fees and Payments Principles) within the period specified in the notice;

  (jc)   restricting, during the period specified in the notice, the use of a refundable deposit balance, an ac commodation bond balance or an entry contribution balance paid to the approved provider to one or more uses permitted under Division   5 2 N ;

172   Subparagraph 67A - 4(2)(a)(iv)

After "Act", insert "and the Aged Care (Transitional Provisions) Act 1997 ".

173   Section   70 - 2 (heading)

Omit " Residential Care ".

174   Section   70 - 2

Omit "Residential Care Grant Principles. The provisions", substitute "Grant Principles. Provisions".

175   Section   70 - 2 (note)

Omit "Residential Care".

175A   Subsection 72 - 1(2)

Omit "Residential Care".

176   Paragraph 73 - 1(2)(b)

Omit "Residential Care".

177   Subsection 74 - 1(1)

Omit "Residential Care".

178   Section   81 - 3

Omit "Advocacy".

179   Section   81 - 3 (note)

Omit "Advocacy".

180   Paragraphs 81 - 4(a) and (b)

Omit "Advocacy".

181   Subsection 82 - 2(3)

Omit "Community Visitors".

182   Subsection 82 - 2(3) (note)

Omit "Community Visitors".

183   S ection   82 - 3

Omit "Community Visitors".

184   Paragraph s 82 - 4 (a) and (b)

Omit "Community Visitors".

185   Subsection 83 - 1(3)

Omit "Other Grants", substitute "Grant".

186   Subsection 83 - 1(3) (note)

Omit "Other Grants", substitute "Grant".

187   Paragraphs 83 - 2(a) and (b)

Omit "Other Grants", substitute "Grant".

188   Section   85 - 1 (table items   39A to 41 )

Repeal the items .

189   Section   85 - 1 (table items   44 and 45)

Repeal the items, substitute:

 

44

To determine compensation payment reductions in respect of residential care subsidy

subsection 44 - 20A(4)

45

To refuse t o make a determination that the care subsidy reduction is zero

subsection 44 - 23(2)

4 5A

To specify a period at the end of which a determination that the care subsidy reduction is zero ceases to be in force

subsection 44 - 23(3)

 

190   Section   85 - 1 (table item   47)

Repeal the item, substitute:

 

47

To determine the value of a person's assets

subsection 44 - 26C(1)

47A

To revoke a determination of the value of a person's assets

subsection 44 - 26C(4)

 

191   Section   85 - 1 (table item   48 )

Omit "supplement", substitute "supplement of a particular amount in respect of residential care".

192   Section   85 - 1 (after table item   49)

Insert:

 

49AA

To revoke a determination that a care recipient is eligible for a hardship supplement in respect of residential care

subsection 44 - 32 ( 1 )

 

193   Section   85 - 1 (table items   51 to 53C)

Repeal the items, substitute:

 

5 0

To determine that a judg e ment or settlement is to be treated as having taken into account the cost of providing home care

subsection 48 - 5(5)

5 1

To determine that a part of the compensation under a settlement is to be treated as relating to the future costs of providing home care

subsection 48 - 5(6)

52

To determine compensation payment reductions in respect of home care subsidy

subsection 48 - 6(4)

5 3

To refuse to make a determination that the care subsidy reduction is zero

subsection 48 - 8(2 )

53A

To specify a period at the end of which a determination that the care subsidy reduction is zero ceases to be in force

subsection 48 - 8(3 )

5 3 B

To refuse to make a determination that a care recipient is eligible for a hardship supplement of a particular amount in respect of home care

subsection 48 - 1 1 (1)

53C

To specify a period or event at the end of which, or on the occurrence of which, a determination under section   48 - 1 1 will cease to be in force

subsection 48 - 1 1 (3)

53D

To revoke a determination that a care recipient is eligible for a hardship supplement in respect of home care

subsection 48 - 12(1)

53E

To refuse to approve a higher maximum amount of * accommodation payment than the maximum amount of accommodation payment determined by the Minister under section   52G - 3

subsection 52G - 4(5)

53 F

To refuse to make a determination that paying an accommodation payment or accommodation contribution of more than a particular amount would cause financial hardship

subsection 52 K - 1(1)

53 G

To specify a period or event at the end of which, or on the occurrence of which, a dete rmination under subsection 52K - 1(1) ceases to be in force

subsection 52 K - 1 ( 3)

53 H

To revoke a determination that paying an accommodation payment or accommodation contribution would cause financial hardship

subsection 52 K - 2 (1)

 

194   Section   85 - 2

Before "If", insert "(1)".

195   At the end of section   85 - 2

Add:

  (2)   If:

  (a)   this Act provides for a person to apply to the * Aged Care Pricing Commissioner to make a * reviewable decision; and

  (b)   a period is specified under this Act for giving notice of the decision to the applicant; and

  (c)   the Aged Care Pricing Commissioner has not notified the applicant of the Commissioner's decision within that period;

the Aged Care Pricing Commissioner is taken, for the purposes of this Act, to have made a decision to reject the application.

196   Section   85 - 3 (heading)

Omit " Secretary must give reasons " , substitute " Reasons ".

197   Subsection s 85 - 3(1) and (2)

After "Secretary", insert "or the * Aged Care Pricing Commissioner".

198   Section   85 - 4 (heading)

Repeal the heading, substitute:

85 - 4   Reconsidering reviewable decisions

199   Subsection 85 - 4(1)

After " * reviewable decision", insert "(other than a reviewable decision under Division   35 or section   52 G - 4 )".

200   After subsection 85 - 4(1)

Insert:

  (1A)   The * Aged Care Pricing Commissioner may reconsider a * reviewable decision under Division   35 or section   52 G - 4 if the Aged Care Pricing Commissioner is satisfied that there is sufficient reason to reconsider the decision.

201   Subsection 85 - 4(3)

After "Secretary", insert "or the * Aged Care Pricing Commissioner".

202   Subsection 85 - 4(4)

After "Secretary", insert "or the * Aged Care Pricing Commissioner".

203   Subsection 85 - 4(5)

Omit "The Secretary's decision", substitute "The decision of the Secretary or the * Aged Care Pricing Commissioner".

204   Subsection 85 - 4(6)

After "Secretary", insert "or the * Aged Care Pricing Commissioner".

205   Subsection 85 - 5(1)

After " * reviewable decision", insert "(other than a reviewable decision under Division   35 or section   52G - 4 )".

206   After subsection 85 - 5(1)

Insert:

  (1A)   A person whose interests are affected by a * reviewable decision under Division   35 or section   52G - 4 may request the * Aged Care Pricing Commissioner to reconsider the decision.

207   Subsection 85 - 5(3)

Repeal the subsection, substitute:

  (3)   The person's request must be made by written notice:

  (a)   for a request that relates to a reviewable decision other than a reviewable decision under Division   35 or section   52G - 4 --given to the Secretary:

  (i)   within 28 days, or such longer period as the Secretary allows, after the day on which the person first received notice of the decision; or

  (ii)   if the decision is a decision under section   44 - 24 to make a determination under subsection 44 - 24(1) or paragraph 44 - 24(2)(b), (3)(b) or (4)(b)--within 90 days, or such longer period as the Secretary allows, after the day on which the person first received notice of the decision; or

  (b)   for a request that relates to a reviewable decision under Division   35 or section   52G - 4 --given to the * Aged Care Pricing Commissioner within 28 days, or such longer period as the Aged Care Pricing Commissioner allows, after the day on which the person first received notice of the decision.

208   Subsection 85 - 5(5)

After "Secretary", insert "or the * Aged Care Pricing Commissioner".

209   Subsection 85 - 5(6)

Omit "The Secretary's decision", substitute "The decision of the Secretary or the * Aged Care Pricing Commissioner".

210   Subsection 85 - 5(7)

After "Secretary" (wherever occurring), insert "or the * Aged Care Pricing Commissioner".

211   Subsection 85 - 5(8)

After "Secretary" (wherever occurring), insert "or the * Aged Care Pricing Commissioner".

212   Subsection 85 - 5(8)

Omit "Secretary's".

213   Paragraph 86 - 1(a)

After "this Act", insert "or the Aged Care (Transitional Provisions) Act 1997 ".

214   At the end of paragraph 86 - 2(1)(c)

Add "or the Aged Care (Transitional Provisions) Act 1997 ".

215   Paragraph 86 - 2(2)(a)

Repeal the paragraph, substitute:

  (a)   conduct that is carried out in the performance of a function or duty under this Act or the Aged Care (Transitional Provisions) Act 1997 or the exercise of a power under, or in relation to, this Act or the Aged Care (Transitional Provisions) Act 1997 ; or

216   Paragraph 86 - 9(1)(e)

After "including", insert " * accommodation payments, * accommodation contributions,".

217   At the end of paragraph 86 - 9(1)(h)

Add "or the Aged Care (Transitional Provisions) Act 1997 ".

218   Subparagraph 88 - 1(1)(a)(i)

Omit "subsidy under Chapter   3", substitute " * subsidy".

219   Paragraph 88 - 1(5)(b)

Omit "subsidy under Chapter   3", substitute " * subsidy".

220   Paragraph 88 - 3(2)(c)

Omit "subsidy under Chapter   3", substitute " * subsidy".

221   Paragraph 90 - 4(3)(d)

Repeal the paragraph, substitute:

  (d)   whether claims for payments under Chapter   3 of this Act or Chapter   3 of the Aged Care (Transitional Provisions) Act 1997 or other payments under this Act or the Aged Care (Transitional Provisions) Act 1997 have been properly made;

222   Paragraph 91 - 1(2)(b)

Repeal the paragraph, substitute:

  (b)   assessing whether an approved provider's claims for payments under Chapter   3 of this Act or Chapter   3 of the Aged Care (Transitional Provisions) Act 1997 or other payments under this Act or the Aged Care (Transitional Provisions) Act 1997 have been properly made;

223   At the end of paragraph 91 - 1(2)(f)

Add "or the Aged Care (Transitional Provisions) Act 1997 ".

224   Paragraph 92 - 1(b)

Omit "subsidy under Chapter   3", substitute " * subsidy".

225   Paragraph 92 - 2(2)(b)

Repeal the paragraph, substitute:

  (b)   assessing whether an approved provider's claims for payments under Chapter   3 of this Act or Chapter   3 of the Aged Care (Transitional Provisions) Act 1997 or other payments under this Act or the Aged Care (Transitional Provisions) Act 1997 have been properly made;

226   Paragraph 93 - 1(2)(b)

Repeal the paragraph, substitute:

  (b)   assessing whether an approved provider's claims for payments under Chapter   3 of this Act or Chapter   3 of the Aged Care (Transitional Provisions) Act 1997 or other payments under this Act or the Aged Care (Transitional Provisions) Act 1997 have been properly made;

227   At the end of paragraph 93 - 1(2)(f)

Add "or the Aged Care (Transitional Provisions) Act 1997 ".

228   Paragraph 93 - 1(3)(b)

Omit "subsidy under Chapter   3", substitute " * subsidy".

229   Subparagraph 93 - 1(4)(b)(ii)

Omit "subsidy under Chapter   3", substitute " * subsidy".

230   Paragraph 93 - 4 ( 2 )(b)

Omit "subsidy under Chapter   3", substitute " * subsidy".

231   Subparagraph 93 - 4(3)(b)(ii)

Omit "subsidy under Chapter   3", substitute " * subsidy".

232   Subsection 95 - 1(1)

Omit "subsidy under Chapter   3", substitute " * subsidy".

233   At the end of section   95 - 3

Add "or the Aged Care (Transitional Provisions) Act 1997 ".

234   At the end of section   95 - 4

Add "or the Aged Care (Transitional Provisions) Act 1997 ".

235   Section   96 - 1 (table item s   3 , 12 and 13 )

Repeal the item s .

236   Section   96 - 1 (table item   15)

Repeal the item, substitute:

 

15

Grant Principles

Parts   5.1, 5.5, 5.6 and 5.7

 

237   Section   96 - 1 (table items   17 , 20 and 21 )

Repeal the items.

238   Section   96 - 1 ( after table item   2 2 )

Insert :

2 2A

Subsidy Principles

Part s   3.1, 3. 2 and 3.3

239   Subsection 96 - 2(2A)

Omit "44 - 8AA and 44 - 8AB", substitute "44 - 26C".

240   Subsection 96 - 2(2A) (note)

Repeal the note, substitute:

Note:   The Secretary's powers under section   44 - 26C relate to determinations of the value of persons' assets.

241   Subsection 96 - 2(3) (note)

Repeal the note, substitute:

Note:   The calculation of a care recipient's total assessable income is relevant to working out amounts of subsidies, fees and payments.

242   Paragraph 96 - 2(3A)(c)

Repeal the paragraph.

243   Paragraph 96 - 2(3A)(d)

Omit "44 - 8AA(1)", substitute "44 - 26C(1)".

244   Paragraph 96 - 2(3A)(e)

Omit "44 - 8AB", substitute "44 - 26A".

245   Paragraph 96 - 2(5)(b)

Omit "Residential Care".

246   Subsection 96 - 3(1)

After "this Act", insert "and the Aged Care (Transitional Provisions) Act 1997 ".

247   Section   96 - 5 (note)

Omit " * accommodation bond agreements, * accommodation charge agreements", substitute "accommodation agreements".

248   Subsection 96 - 10(1)

Omit " subsidies payable under Chapter   3, and amounts payable under subsection 44 - 8A(6), " , substitute " * subsidies".

249   Clause   1 of Schedule   1

Insert:

"accommodation agreement" means an agreement that meets the requirements set out in section   52F - 3.

250   Clause   1 of Schedule   1 ( at the end of the definition of accommodation bond )

Add:

Note:   This Act contains rules about accommodation bonds , which are paid under the Aged Care (Transitional Provisions) Act 1997 .

251   Clause   1 of Schedule   1 (definition of accommodation bond agreement )

Repeal the definition.

252   Clause   1 of Schedule   1 ( paragraph   ( b) of the definition of accommodation bond balance )

Omit "section   57 - 19", substitute "this Act or the Aged Care (Transitional Provisions) Act 1997 ".

253   Clause   1 of Schedule   1 ( at the end of the definition of accommodation charge )

Add:

Note:   This Act contains rules about accommodation charges, which are paid under the Aged Care (Transitional Provisions) Act 1997 .

254   Clause   1 of Schedule   1 (definition of accommodation charge agreement )

Repeal the definition.

255   Clause   1 of Schedule   1

Insert:

"accommodation contribution" means a contribution paid for accommodation provided with residential care .

"accommodation payment" means payment for accommodation provided with residential care or flexible care .

"accommodation supplement" means the supplement referred to in section   44 - 28.

256   Clause   1 of Schedule   1 (definition of assisted resident )

Repeal the definition.

257   Clause   1 of Schedule   1 (definition of charge exempt resident )

Repeal the definition.

258   Clause   1 of Schedule   1 (definition of close relation )

Omit "44 - 11", substitute "44 - 26B".

259   Clause   1 of Schedule   1

Insert:

"combined care subsidy reduction" means a care subsidy reduction under section   44 - 21 or 48 - 7.

260   Clause   1 of Schedule   1 (definition of concessional resident )

Repeal the definition.

261   Clause   1 of Schedule   1

Insert:

"continuing care recipient" means:

  (a)   a * continuing residential care recipient; or

  (b)   a * continuing home care recipient; or

  (c)   a * continuing flexible care recipient.

"continuing flexible care recipient" means a person who:

  (a)   * entered a flexible care service before 1   July 2014; and

  (b)   has not :

  (i)   ceased to be provided with flexible care by a flexible care service for a continuous period of more than 28 days (other than be cause the person is on * leave); or

  (ii)   before moving to another flexible care service, made a written choice, in accordance with the Fees and Payments Principles, to be covered by Chapters   3 and 3A of this Act in relation to the other service .

"continuing home care recipient" means a person who:

  (a)   * entered a home care service before 1   July 2014; and

  (b)   has not :

  (i)   ceased to be provided with home care by a home care service for a continuous period of more than 28 days (other than because the person is on * leave); or

  (ii)   before moving to another home care service, made a written choice, in accordance with the Fees and Payments Principles, to be covered by Chapters   3 and 3A of this Act in relation to the other service.

"continuing residential care recipient" means a person who:

  (a)   * entered a residential care service before 1   July 2014; and

  (b)   has not :

  (i)   ceased to be provided with residential care by a residential care service for a continuous period of more than 28 days (other than be cause the person is on * leave); or

  (ii)   before moving to another residential care service, made a written choice, in accordance with the Fees and Payments Principles, to be covered by Chapters   3 and 3A of this Act in relation to the other service.

262   Clause   1 of Schedule   1

Insert:

"daily accommodation contribution" means * accommodation contribution that:

  (a)   accrues daily; and

  (b)   is paid by periodic payment.

"daily accommodation payment" means * accommodation payment that:

  (a)   accrues daily; and

  (b)   is paid by periodic payment.

263   Clause   1 of Schedule   1 (definition of daily income tested reduction )

Repeal the definition.

264   Clause   1 of Schedule   1

Insert:

"daily payment" means:

  (a)   * daily accommodation payment; or

  (b)   * daily accommodation contribution.

265   Clause   1 of Schedule   1 (definition of dependent child )

Omit "44 - 11", substitute "44 - 26B".

266   Clause   1 of Schedule   1

Insert:

"eligible flexible" care service has the meaning given by subsection 52F - 1(2).

267   Clause   1 of Schedule   1 (definition of high level of residential care )

Repeal the definition.

268   Clause   1 of Schedule   1 (definition of homeowner )

Omit "44 - 11", substitute "44 - 26B".

269   Clause   1 of Schedule   1 (definition of low level of residential care )

Repeal the definition.

270   Clause   1 of Schedule   1

Insert:

"maximum accommodation supplement amount" has the meaning given by subsection 44 - 21(6).

271   Clause   1 of Schedule   1

Insert:

"maximum home value" has the meaning given by section   44 - 26B.

272   Clause   1 of Schedule   1

Insert:

"means tested amount" has the meaning given by section   44 - 22.

273   Clause   1 of Schedule   1 (definition of member of a couple )

Omit "44 - 11", substitute "44 - 26B".

274   Clause   1 of Schedule   1 (definition of partner )

Omit "44 - 11", substitute "44 - 26B".

275   Clause   1 of Schedule   1 (definition of pensioner supplement )

Repeal the definition.

276   Clause   1 of Schedule   1 (definition of permitted )

After "use of" , insert, "a * refundable deposit or".

277   Clause   1 of Schedule   1 (definition of permitted )

Omit "57 - 17A" , substitute, "52N - 1".

278   Clause   1 of Schedule   1 (definition of post - 2008 reform resident )

Repeal the definition.

279   Clause   1 of Schedule   1 (definition of post - September 2009 resident )

Repeal the definition.

280   Clause   1 of Schedule   1 (definition of pre - 2008 reform resident )

Repeal the definition.

281   Clause   1 of Schedule   1 (definition of pre - entry leave )

Omit "section   44 - 5E", substitute "subsection 42 - 3(3)" .

282   Clause   1 of Schedule   1 (definition of pre - September 2009 resident )

Repeal the definition.

283   Clause   1 of Schedule   1 (definition of protected resident )

Repeal the definition.

284   Clause   1 of Schedule   1

Insert:

"refundable accommodation contribution" means * accommodation contribution that:

  (a)   does not accrue daily; and

  (b)   is paid as a lump sum.

"refundable accommodation deposit" means * accommodation payment that:

  (a)   does not accrue daily; and

  (b)   is paid as a lump sum.

"refundable deposit" means:

  (a)   a * refundable accommodation deposit; or

  (b)   a * refundable accommodation contribution.

"refundable deposit balance" , in relation to a * refundable deposit is, at a particular time, an amount equal to the difference between :

  (a)   the amount of the refundable deposit ; and

  (b)   any amounts that have been, or are permitted to be, deducted at the time from the refundable deposit under this Act as at that time.

285   Clause   1 of Schedule   1 (definition of standard resident contribution )

Repeal the definition.

286   Clause   1 of Schedule   1

Insert:

"start-date year" , for a care recipient, means a year beginning on:

  (a)   the day on which the care recipient first * entered an aged care service other than as a * continuing care recipient ; or

  (b)   an anniversary of that day.

"subsidy" means subsidy paid under Chapter   3 of this Act or under Chapter   3 of the Aged Care (Transitional Provisions) Act 1 997 .

287   Clause   1 of Schedule   1 (definition of supported resident )

Repeal the definition.

288   Clause   1 of Schedule   1 (definition of unregulated lump sum )

Omit " Bond Security ", substitute " Accommodation Payment Security " .

289   Clause   1 of Schedule   1 (definition of unregulated lump sum balance )

Omit " Bond Security ", substitute " Accommodation Payment Security ".

Part   2 -- Transitional and savings provisions

290   Definitions

In this Part:

commencement time means the time when this Schedule commences.

old law means the Aged Care Act 1997 as in force immediately before the commencement time.

291   Approval of care recipients limited to low care

An approval to receive residential care that was:

  (a)   limited to a low level of residential care; and

  (b)   given under Part   2.3 of the old law ; and

  (c)   in force immediately before the commencement time ;

is taken, after the commencement time, to have been given without being limited to a low level of residential care .

292   Determining the status of residential care service buildings

A provision of the Subsidy Principles has effect before it commences as if it had commenced if the provision:

  (a)   is made for the purposes of section   44 - 28 of the Aged Care Act 1997 as amended by item   125 of this Schedule; and

  (b)   relates to determining, or applying for the determination of, the status of a building.



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