or for such further period as the Secretary allows, having regard to any
matters specified in the User Rights Principles.
32 Subsection 57-16(2) (note 2)
Omit "Paragraph 57-2(e) requires", substitute
"Paragraph 57-2(1)(e) in most cases requires".
33 At the end of Division 57
Add:
Subdivision 57-HCharging an accommodation bond instead of an
accommodation charge
57-23 Charging an accommodation bond instead of an
accommodation charge - (1)
- This section applies if:
- (a)
- a care recipient has entered into an * accommodation bond agreement (the
original agreement ) for * entry to a residential care service (the original
service ); and
- (b)
- the care recipient ceases being provided with residential care through the
original service (other than because the care recipient is on * leave); and
- (c)
- within 28 days after the cessation, the care recipient enters another
residential care service (the later service ) for which entry an *
accommodation charge would become payable (disregarding subparagraph
57A-2(1)(a)(iv)); and
- (d)
- the approved provider of the later service and the care recipient agreed,
before the care recipient entered the later service, that an accommodation
bond, instead of an accommodation charge, can be charged for the entry of the
person to the later service.
- (2)
- If this section applies:
- (a)
- the approved provider of the later service can charge an * accommodation
bond for the * entry of the person to the later service; and
- (b)
- if the care recipient has paid the full amount of the accommodation bond
relating to the original agreementthe maximum amount of the new
accommodation bond is the amount of the accommodation bond balance that was
refunded or is payable to the care recipient under section 57-21 in respect of
the accommodation bond relating to the original agreement; and
- (c)
- in any other casethe maximum amount of the new accommodation bond is
the amount of the accommodation bond that was payable under the original
agreement, less any retention amounts that would have been permitted to be
deducted under section 57-20 in respect of the original service if the
accommodation bond had been paid as a lump sum.
34 After Division 57
Insert: Division 57AWhat are the responsibilities
relating to accommodation charges? 57A-1 What this Division is about
If an
approved provider charges an * accommodation charge for the * entry of a care
recipient to a residential care service, several rules must be followed. These
relate particularly to * accommodation charge agreements, the amount of the
charge that accrues and its payment, and treatment of charge payments
received.
Table of Subdivisions
57A-A The basic rules
57A-B Accommodation
charge agreements
57A-C Daily accrual amounts of accommodation charges
57A-D
Payment of accommodation charges
Subdivision 57A-AThe basic rules
57A-2 Basic rules about accommodation charges - (1)
- The rules relating to
charging an * accommodation charge for the * entry of a person to a
residential care service as a care recipient are as follows:
- (a)
- at the time of entry, all of the following must be true:
- (i)
- the person requires a * high level of residential care;
- (ii)
- the person's approval as a care recipient of residential care is not
limited under section 22- 2 to a * low level of residential care;
- (iii)
- the service, of the * distinct part of the service through which the
care recipient is to receive care, does not have * extra service status;
- (iv)
- section 57-23 does not allow the approved provider to charge an *
accommodation bond for the entry;
Note: A * concessional resident cannot be required to pay an accommodation
chargesee section 57A-6.
- (b)
- the person is not a * charge exempt
resident;
- (c)
- the entry must not be for the purpose of the provision of * respite care;
- (d)
- the approved provider must, before the care recipient enters the service,
provide the care recipient with such information about the accommodation
charge as is specified in the User Rights Principles;
- (e)
- the approved provider must have entered into an * accommodation charge
agreement (see section 57A- 3) with the care recipient before, or within 7
days after, the care recipient entered the service;
Note: This time limit is extended in some cases if certain legal processes
relating to the care recipient's mental impairment are in progresssee
subsection (2) of this section.
- (f)
- another person must not be required to
pay the accommodation charge as a condition of the care recipient entering the
residential care service;
- (g)
- the daily amount at which the accommodation charge accrues must not exceed
the maximum provided for by section 57A-6 and the care recipient must not be
charged more than one accommodation charge in respect of entering the service;
- (h)
- the accommodation charge must not accrue for any day in contravention of
the requirements of section 57A-7 (which imposes a 5 year limit) or 57A-8
(which deals with * certification of the residential care service);
- (i)
- the accommodation charge must not be charged if a determination is in
force under section 57A-9 that paying an accommodation charge would cause the
care recipient financial hardship;
- (j)
- the approved provider must comply with the requirements of section 57A-11
relating to payment of the accommodation charge;
- (k)
- the care recipient may be required in accordance with section 57A-12 to
pay interest to the approved provider if some or all of the accommodation
charge is not paid within the time that section permits;
- (l)
- the approved provider must use any payment of the accommodation charge it
receives in the following ways:
- (i)
- to meet capital works costs relating to residential care;
- (ii)
- to retire debt relating to residential care;
- (iii)
- where no capital expenditure is reasonably necessary to comply with
matters specified in the Certification Principles for the purposes of
subsection 38- 3(3) and meeting accreditation requirementsto improve the
quality and range of * aged care services;
- (m)
- the approved provider must not charge an accommodation charge if
prohibited under Part 4.4 from doing so (see paragraph 66-1(j));
- (n)
- any other rules specified in the User Rights Principles.
- (2)
- If, at the end of the 7 days mentioned in paragraph (1)(e):
- (a)
- the approved provider and the care recipient have not entered into an *
accommodation charge 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 in that paragraph 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 User Rights Principles.
Subdivision 57A-BAccommodation charge agreements
57A-3 Contents of
accommodation charge agreements - (1)
- An agreement between an approved
provider and a person proposing to * enter, or having entered, as a care
recipient to a residential care service through which the approved provider
provides care is an accommodation charge agreement if it sets out the
following:
- (a)
- the amount of the * accommodation charge that:
- (i)
- will accrue for each day (including a day on which the care recipient is
on * leave from the residential care service) if the care recipient enters the
service; or
- (ii)
- if the care recipient has already entered the residential care
servicehas accrued and will accrue for each day (including a day on
which the care recipient is on * leave from the service);
- (b)
- the care recipient's proposed date of entry, or date of entry, to the
residential care service;
- (c)
- how the accommodation charge is to be paid;
- (d)
- the time or times when the accommodation charge is payable;
- (e)
- whether agreeing to pay the accommodation charge entitles the care
recipient to specific accommodation or additional services within the
residential care service;
- (f)
- any financial hardship provisions that apply to the care recipient;
- (g)
- such other matters as are specified in the User Rights Principles.
- (2)
- The User Rights Principles may specify, but are not limited to, matters
relating to the following:
- (a)
- the specific entitlements of care recipients arising from entering into an
* accommodation charge agreement;
- (b)
- the provision of information to third parties about accommodation charges
and related matters;
- (c)
- a care recipient's obligations;
- (d)
- alleviating financial hardship.
57A-4 Accommodation charge agreements may be incorporated into other
agreements
For the purposes of this Division, a person is taken to have entered into an *
accommodation charge agreement if the person has entered into an agreement
that contains the provisions required by section 57A- 3.
- Example: These provisions may be included in a * resident agreement.
57A-5 Agreements cannot affect requirements of this Division
The requirements of this Division apply despite any provision of an *
accommodation charge agreement, or any other agreement, to the contrary.
Subdivision 57A-CDaily accrual amounts of accommodation charges
57A-6
Maximum daily accrual amount of accommodation charge - (1)
- Subject to
subsection (2), the maximum daily amount at which an * accommodation charge
accrues for the * entry of a person as a care recipient to a residential care
service is whichever is the lowest of the following:
- (a)
- the amount of the daily accrual of the accommodation charge as specified
in the * accommodation charge agreement;
- (b)
- the amount obtained by:
- (i)
- taking the amount that, when subtracted from an amount equal to the value
of the care recipient's assets at the time of the care recipient's entry to
the residential care service, leaves an amount at least equal to the care
recipient's minimum permissible asset value as defined in subsection 57-12(3);
and
- (ii)
- dividing the result by 1,825;
- (c)
- such amount as is specified in, or worked out in accordance with, the User
Rights Principles.
- (2)
- If:
- (a)
- a care recipient proposes to * enter a residential care service conducted
by an approved provider; and
- (b)
- the care recipient does not, before entering into an * accommodation
charge agreement, give the approved provider sufficient information about the
care recipient's assets for the approved provider to be able to determine the
amounts referred to in paragraph (1)(b);
the maximum daily amount at which an * accommodation charge accrues is the
lesser of the amounts mentioned in paragraphs (1)(a) and (c).
- (3)
- The value of a care recipient's assets is to be worked out in the same way
as it would be worked out under section 44-10 for the purposes of section 44-7
or 44-8.
57A-7 Maximum period of daily accrual of accommodation charge - (1)
- An *
accommodation charge for * entry to a residential care service must not accrue
for any day after the provision of care to the care recipient through that
residential care service ceases.
- (2)
- An * accommodation charge for * entry to a residential care service must
not accrue for any day after 5 years after the later of the following:
- (a)
- the time when the care recipient entered the residential care service;
- (b)
- if, at the time of the entry, the service was not * certified, and the
approved provider and the care recipient agreed that a charge became, or was
to become, payable when the service was certifiedthe time when the
service was certified.
- (3)
- In working out that period of 5 years, include any day on which the care
recipient was on * leave from the service, but do not include any other day on
which the care recipient did not receive residential care through the service.
- (4)
- Also, if the care recipient has previously become liable to pay an *
accommodation charge for * entry to a residential care service, the period of
5 years is reduced by the number of days for which that charge accrued.
57A-8 Accommodation charge not to accrue while residential service not
certified
An * accommodation charge for * entry to a residential care service must not
accrue for any day during which the service is not * certified.
57A-9 Accommodation charge not payable in cases of financial hardship - (1)
- The Secretary may determine, in accordance with the User Rights Principles,
that a person must not be charged an * accommodation charge because payment of
an accommodation charge would cause the person financial hardship.
- Note: Refusals to make determinations are reviewable under Part 6.1.
- (2)
- Without limiting the circumstances that constitute financial hardship for
the purposes of this section, such circumstances include any circumstances
specified in the User Rights Principles.
- (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 subsection (1) that payment of an *
accommodation charge would cause the person financial hardship. The
application may be made by:
- (a)
- the person; or
- (b)
- an approved provider to which the accommodation charge would otherwise be
paid.
- (5)
- If the Secretary needs further information to determine the application,
the Secretary may give to the applicant a notice requiring 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.
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 extendedsee
section 96-7.
- (6)
- 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.
- (7)
- 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.
57A-10 Revocation of determinations of financial hardship - (1)
- The Secretary
may, in accordance with the User Rights Principles, revoke a determination
made under section 57A-9.
- Note: Revocations of determinations are reviewable under Part 6.1.
- (2)
- Before deciding to revoke the determination, the Secretary must notify the
person, and an approved provider who is providing or is to provide residential
care to the person, that revocation is being considered. 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.
- (3)
- 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.
- (4)
- The Secretary must notify, in writing, the person and the approved
provider of the decision.
- (5)
- The notice must be given to the person and the approved provider within 28
days after the end of the period for making submissions. If the notice is not
given within that period, the Secretary is taken to have decided not to revoke
the determination.
- (6)
- A revocation has effect:
- (a)
- if the person and the approved provider received notice under subsection
- (4)
- on the same daythe day after that day; or
- (b)
- if they received the notice on different daysthe day after the later
of those days.
Subdivision 57A-DPayment of accommodation charges
57A-11 Accommodation
charge may be payable not more than one month in advance - (1)
- A care
recipient may be required to pay an * accommodation charge at a time before
the day for which the charge will accrue.
- (2)
- However, the time must not be more than one month before the day for which
the charge will accrue and, if the charge does not in fact accrue, the care
recipient is entitled to a refund of the amount paid.
57A-12 Approved provider may charge interest - (1)
- If:
- (a)
- a care recipient is required, under an * accommodation charge agreement,
to pay an amount of * accommodation charge to an approved provider; and
- (b)
- the care recipient does not pay the required amount before the end of one
month after the day for which the charge accrues; and
- (c)
- the agreement provides for interest to be charged on the balance
outstanding at a specified rate;
the care recipient may be required to pay the approved provider interest on
the balance outstanding for the period beginning at the end of the one month
and continuing while the balance remains unpaid.
- (2)
- However, the rate at which the interest is charged must not exceed the
maximum specified in the User Rights Principles.
35 Subsection 59- 1(3) (at the end of the note)
Add "or * accommodation
charge agreement (see section 57A-4)".
36 Subparagraph 62-1(b)(ii)
After
"under section 57-20", insert "or to the person's remaining liability (if any)
to pay an * accommodation charge".
37 Paragraph 63-2(2)(d)
Omit
"accommodation bonds", substitute " * accommodation bonds and * accommodation
charges".
38 Paragraph 66-1(j)
After "of * accommodation bonds", insert ",
or the accrual of * accommodation charges,".
39 Section 85- 1 (after table
item 53)
Insert:
53A
| To refuse to make a determination that paying an
accommodation charge would cause financial hardship
| subsection 57A-9(1)
|
53B
|
To specify, in a determination that paying an accommodation charge would cause
financial hardship, a period or event at the end of which or, on the
occurrence of which, the determination will cease to be in force
| subsection
57A-9(3)
|
53C
| To revoke a determination that paying an accommodation charge
would cause financial hardship
| subsection 57A-10(1)
|
40
At the end of paragraph 86-9(1)(e)
Add "and * accommodation charges".
41 At
the end of paragraph 88-2(2)(h)
Add "or * accommodation charges".
42
Paragraph 96-5(b)
Omit "physical or mental incapacity", substitute "physical
incapacity or mental impairment".
43 Section 96-5 (note)
After "bond
agreements,", insert " * accommodation charge agreements,".
44 Subsection
96-10(1)
After "Chapter 3", insert ", and amounts payable under subsection
44-8A(6),".
45 Clause 1 of Schedule 1 (definition of accommodation bond )
After "money", insert "that does not accrue daily and is".
46 Clause 1 of
Schedule 1
Insert: accommodation charge , in relation to a person, means an
amount of money that accrues daily and is paid or payable to an approved
provider by the person for the person's * entry to a residential care service
or flexible care service through which care is, or is to be, provided by the
approved provider.
47 Clause 1 of Schedule 1
Insert: accommodation charge agreement has the
meaning given by section 57A- 3.
48 Clause 1 of Schedule 1
Insert: charge exempt resident has the meaning
given by section 44-8B.
49 Clause 1 of Schedule 1
Insert: low level of residential care means a
level of residential care that is not a * high level of residential care.
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