Aged Care Amendment (Residential Care) Act 2006

Administered by Department of Health, Disability and Ageing

Legislation au C2006A00133 In force Act

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Aged Care Amendment (Residential Care) Act 2006

 

No. 133, 2006

 

 

 

 

 

An Act to amend the Aged Care Act 1997, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Harmonising aged care and pension requirements in relation to income streams and asset disposals

Aged Care Act 1997

Schedule 2—Delegations

Aged Care Act 1997

 

 

 

Aged Care Amendment (Residential Care) Act 2006

No. 133, 2006

 

 

 

An Act to amend the Aged Care Act 1997, and for related purposes

[Assented to 9 November 2006]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Aged Care Amendment (Residential Care) Act 2006.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

9 November 2006

2.  Schedule 1

1 January 2007.

1 January 2007

3.  Schedule 2

The day on which this Act receives the Royal Assent.

9 November 2006

Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

 (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Harmonising aged care and pension requirements in relation to income streams and asset disposals

 

Aged Care Act 1997

1  After subsection 44‑10(1)

Insert:

 (1A) 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.

 (1B) 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.

 (1C) 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 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 of the Social Security Act 1991 applied for the purposes of this Act.

Note: 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.

2  Application of subsections 44‑10(1A), (1B) and (1C)—working out the value of assets on or after 1 January 2007 for people entering an aged care service after that date

Subsections 44‑10(1A), (1B) and (1C) of the Aged Care Act 1997 apply to the working out of the value of a person’s assets if:

 (a) the working out is done on or after 1 January 2007; and

 (b) the person enters an aged care service (within the meaning of that Act) on or after that date.

3  Application of subsection 44‑10(1C)—assets disposed of on or after 10 May 2006

(1) In determining an amount under paragraph 44‑10(1C)(a) of the Aged Care Act 1997, the Secretary must take into account assets that a person disposes of (within the meaning of Subdivision B of Division 11 of Part IIIB of the Veterans’ Entitlements Act 1986) on or after 10 May 2006.

(2) In determining an amount under paragraph 44‑10(1C)(b) of the Aged Care Act 1997, the Secretary must take into account assets that a person disposes of (within the meaning of Division 2 of Part 3.12 of the Social Security Act 1991) on or after 10 May 2006.


Schedule 2—Delegations

 

Aged Care Act 1997

1  Subsection 96‑2(5)

Repeal the subsection, substitute:

 (5) The Secretary may, in writing, delegate to a person making an assessment for the purposes of section 22‑4:

 (a) all or any of the Secretary’s functions under Part 2.3; and

 (b) all or any of the Secretary’s powers under the Residential Care Subsidy Principles that relate to respite supplement.

2  Application of amendment of subsection 96‑2(5)

Despite the repeal and substitution of subsection 96‑2(5) of the Aged Care Act 1997 by this Schedule, delegations in force under that subsection immediately before the commencement of this Schedule continue to have effect on and from the commencement of this Schedule as if they had been made under paragraph 96‑2(5)(a) of that Act as in force immediately after the commencement of this Schedule.

 

 

[Minister’s second reading speech made in—

Senate on 13 September 2006

House of Representatives on 31 October 2006]

(123/06)

 

Overview

The Aged Care Amendment (Residential Care) Act 2006, enacted by the Parliament of Australia, was designed to amend the Aged Care Act 1997, addressing certain gaps in the assessment and financial management of aged care services. The Act was assented to on 9 November 2006 and aims to harmonise the requirements of aged care and pension in relation to income streams and asset disposals. It introduces changes to the Aged Care Act 1997, particularly focusing on how the value of assets is calculated for individuals entering residential aged care services. The Act also includes provisions for delegations related to the assessment of residential care subsidy principles. The policy objective of this Act is to ensure a consistent approach in the valuation of assets for aged care assessment purposes, aligning them with pension requirements under the Veterans’ Entitlements Act 1986 and the Social Security Act 1991. The amendments clarify how income streams and asset disposals are considered in determining an individual's eligibility and financial contribution to aged care services. This Act streamlines the process and reduces potential discrepancies in asset valuation between aged care and pension assessments.

Scope and Application

The Aged Care Amendment (Residential Care) Act 2006 amends the Aged Care Act 1997 and applies to individuals receiving aged care services in Australia, particularly those who possess income streams, including veterans’ pensions and service pensions, and those who have disposed of assets. The Act is applicable nationwide, as it is a Commonwealth Act. It does not specify exclusions or exemptions but instead provides specific provisions for the valuation of assets in relation to income streams and the delegation of certain functions and powers to individuals conducting assessments for the purposes of residential care subsidies. The Act commenced on 9 November 2006, with further provisions coming into effect on 1 January 2007. The Act allows for further regulation and detail to be provided through subordinate instruments, such as the regulations and guidelines that may be issued under its authority.

Key Provisions

The Aged Care Amendment (Residential Care) Act 2006 (Act) makes several amendments to the Aged Care Act 1997 (ACA). The primary amendments are found in Schedule 1, which deals with harmonising aged care and pension requirements in relation to income streams and asset disposals. Schedule 2 deals with delegations under the ACA. The Act commenced on 9 November 2006, with certain provisions in Schedule 1 commencing on 1 January 2007. Schedule 1 inserts new subsections 44-10(1A), (1B), and (1C) into the ACA, which govern the valuation of a person’s assets for aged care purposes when they have certain types of income streams. Specifically, it deals with income streams purchased on or after 20 September 2007, under the Veterans’ Entitlements Act 1986 (VEA) or the Social Security Act 1991 (SSA). These new subsections apply to the valuation of assets for people entering aged care services on or after 1 January 2007. Additionally, the Act requires the Secretary to consider assets disposed of on or after 10 May 2006 when determining a person’s asset value under the ACA. The Act imposes specific obligations on the Secretary under the ACA, primarily concerning the assessment and valuation of assets for aged care purposes. The Secretary must apply the new subsections 44-10(1A), (1B), and (1C) when calculating a person’s asset value, particularly in relation to income streams purchased after 20 September 2007. Furthermore, the Secretary must consider assets disposed of on or after 10 May 2006 in these assessments. These requirements ensure consistency in how assets are valued for aged care purposes, regardless of whether a person receives an income support supplement or a service pension. Breach of the provisions of the Act could potentially result in civil or criminal penalties, although the Act itself does not explicitly detail specific offences or penalties. However, given that the Act amends the ACA, penalties for non-compliance could be found within the ACA or other related legislation. Generally, non-compliance with aged care legislation can lead to fines, corrective actions, or other enforcement measures, depending on the nature and severity of the breach. It is essential for parties subject to the Act to adhere to its provisions to avoid any potential legal consequences.

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Elder Law
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.