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AGED CARE (CONSEQUENTIAL PROVISIONS) ACT 1997 No. 114 of 1997 - SECT 71

71 Formal agreements between hostel operators and residents

(1) Subject to this section, if:

   (a)  immediately before the commencement day, a Formal Agreement (within
        the meaning of the General Conditions formulated under section 10F of
        the 1954 Act) was in force; and

   (b)  the Formal Agreement was entered into between an eligible person
        (within the meaning of the 1954 Act) and an approved operator (within
        the meaning of the 1954 Act) of a hostel; for the purposes of
        paragraph 56-1(g) of the new Act, the Formal Agreement is taken to be
        a *resident agreement that:

   (c)  the *approved provider conducting the *residential care service that
        corresponds to the hostel had, on the commencement day, offered to
        enter into with the eligible person; and

   (d)  the approved provider and the eligible person had entered into on the
        commencement day.

(2) If:

   (a)  ongoing fees are payable under the Formal Agreement by the person for
        the provision of accommodation and care; and

   (b)  the amount of ongoing fees payable in respect of the commencement day
        or a subsequent day would exceed the amount of the resident fee that
        may be charged under paragraph 58-1(a) of the new Act in respect of
        that day; the amount of the resident fee that may be charged under
        that paragraph in respect of that day is an amount not exceeding the
        amount of ongoing fees payable in respect of that day.

(3) If:

   (a)  before the commencement day, the person had, under the Formal
        Agreement, paid, or agreed to pay, an entry contribution (within the
        meaning of the General Conditions formulated under section 10F of the
        1954 Act) to the approved operator; and

   (b)  immediately before the commencement day, the person was an existing
        resident (within the meaning of section 10F of the 1954 Act), or a new
        resident (within the meaning of that section), of the hostel; on and
        after the commencement day:

   (c)  paragraph 56-1(a) of the new Act applies as if the requirements
        referred to in that paragraph were the requirements of the General
        Conditions formulated under section 10F of the 1954 Act, as they
        relate to entry contributions; and

   (d)  Division 57 of the new Act does not apply in relation to the entry
        contribution.

(4) If:

   (a)  before the commencement day, the person had, under the Formal
        Agreement, paid, or agreed to pay, an entry contribution (within the
        meaning of the General Conditions formulated under section 10F of the
        1954 Act) to the approved operator; and

   (b)  on or after the commencement day, the person ceases being provided
        with *residential care through the *residential care service (the
        original service) that corresponds to the hostel (other than because
        the care recipient is on *leave); and

   (c)  the person enters another residential care service within 28 days
        after the day on which the person ceased being provided with care by
        the original service; for the purposes of the new Act:

   (d)  the amount of the entry contribution that is refundable to the person
        under the Formal Agreement is taken to be the maximum amount of the
        *accommodation bond for the entry of the person to the other service;
        and

   (e)  the amount of the entry contribution that is so refundable is to be
        refunded to the person in accordance with subsection 57-21(3) as if
        that amount were an *accommodation bond balance.

(5) For the purposes of subsection 57- 20(5) of the new Act, if:

   (a)  before the commencement day, the person had, under the Formal
        Agreement, paid, or agreed to pay, an entry contribution (within the
        meaning of the General Conditions formulated under section 10F of the
        1954 Act) to the approved operator; and

   (b)  before, on or after the commencement day, the approved operator has
        retained an amount from the entry contribution in respect of a period;
        each month included in that period is taken to be a month in respect
        of which a retention amount was deducted from an *accommodation bond
        balance in respect of an *accommodation bond previously paid by the
        person. 


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