Extra Service Amendment Principles 2000 (No. 1)

Overview

The Extra Service Amendment Principles 2000 (No. 1) were introduced to address the need for updating the Extra Service Principles 1997 in light of the introduction of the Goods and Services Tax (GST) under the A New Tax System (Goods and Services Tax) Act 1999. Enacted by Bronwyn Kathleen Bishop, the Minister for Aged Care, these principles were made under section 96-1 of the Aged Care Act 1997. They commenced on 1 July 2000 and primarily aim to amend the Extra Service Principles 1997 to ensure that they align with the new GST framework, thereby clarifying the scope of charges that can be levied on extra services provided to care recipients. This legislative instrument seeks to maintain the integrity of the aged care system by ensuring that any adjustments to service agreements are both transparent and compliant with existing legislation.

Scope and Application

The Extra Service Amendment Principles 2000 (No. 1) apply to the approved providers of aged care services in Australia, including both public and private providers, as well as the care recipients who receive services from these providers. The Principles amend the Extra Service Principles 1997 and are designed to ensure that any additional services provided to care recipients are clearly defined and any costs associated with these services, including GST, are properly accounted for. The amendments also clarify the circumstances under which the agreement between the provider and the care recipient can be varied, particularly in relation to the implementation of the A New Tax System (Goods and Services Tax) Act 1999. These Principles have a national reach, applying across all states and territories in Australia as they are made under the Aged Care Act 1997, a Commonwealth Act. The application of these Principles is further extended or restricted through subordinate instruments, such as regulations or guidelines, which may provide additional detail or clarification on specific provisions within the legislation.

Key Provisions

The Extra Service Amendment Principles 2000 (No. 1) provide specific amendments to the Extra Service Principles 1997, focusing on the implementation of the A New Tax System (Goods and Services Tax) Act 1999 within the aged care sector. These Principles are made under section 96-1 of the Aged Care Act 1997 and come into effect on 1 July 2000. The amendments are detailed in Schedule 1, which modifies certain definitions and provisions of the Extra Service Principles 1997. The primary amendments include the insertion of a new definition for GST, aligning with the A New Tax System (Goods and Services Tax) Act 1999 (Schedule 1, Part Placeholder, section 3). Additionally, Section 14.25 has been revised to specify that care recipients must be charged only for the approved extra service amount and any GST applicable on services not listed in the Quality of Care Principles and provided on an extra service basis (Schedule 1, Part Placeholder, [2]). Section 14.38 has also been amended to clarify the conditions under which the agreement between the care recipient and the approved provider can be varied, particularly to implement the GST Act, and requires written notice and mutual consent in other cases (Schedule 1, Part Placeholder, [3]). The obligations imposed by these Principles on care recipients, approved providers, and other entities governed by the Act include adherence to the new definitions and provisions regarding extra service charges and GST. Care recipients and approved providers must ensure that any agreements regarding extra services are varied only in accordance with the specified conditions, particularly those relating to the implementation of the GST Act. Approved providers must also provide reasonable notice to care recipients of any variations to the agreement necessary to implement the GST Act. Failure to comply with the provisions of the Extra Service Amendment Principles 2000 (No. 1) can result in civil or criminal consequences. Although the specific penalties are not detailed in the text provided, breaches of aged care legislation typically result in enforcement actions by the relevant authorities, including fines and other penalties as prescribed by law. The severity of these consequences can depend on the nature and extent of the breach, and in some cases, may lead to legal action against the offending party.