Residential Care Subsidy Amendment Principles 1999 (No. 2)

Administered by Department of Health, Disability and Ageing

Legislation au F1999B00271 Not in force Legislative Instrument

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Residential Care Subsidy Amendment Principles 1999 (No. 2)

I, Bronwyn Kathleen Bishop, Minister for Aged Care, make these Principles under subsection 96-1 (1) of the Aged Care Act 1997.

Dated 20 October  1999.






BRONWYN BISHOP

Minister for Aged Care

 

Residential Care Subsidy Amendment Principles 1999 (No. 2)

made under the

Aged Care Act 1997

 

 

 

Contents

 Page

 1 Name of Principles 

 2 Commencement 

 3 Amendment of Residential Care Subsidy Principles 1997

Schedule 1 Amendments 

 

 

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1 Name of Principles

  These Principles are the Residential Care Subsidy Amendment Principles 1999 (No. 2).

2 Commencement

  These Principles commence on the commencement of Schedule 1 of the Aged Care Amendment (Omnibus) Act 1999.

3 Amendment of Residential Care Subsidy Principles 1997

  Schedule 1 amends the Residential Care Subsidy Principles 1997.

 

Schedule 1 Amendments

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(section 3)

[1] Section 21.3, note

substitute

 

Note:   Definitions

A number of expressions used in these Principles are defined in the Aged Care Act 1997 (see Dictionary in Schedule 1), including:

 

  • accommodation bond
  • accommodation charge
  • assisted resident
  • care
  • charge exempt resident
  • concessional resident
  • dependent child
  • high level of residential care
  • payment period
  • residential care service
  • respite care
  • Secretary.

[2] After Part 5

insert

Part 5A Charge exempt resident supplement

21.13A Purpose of Part (Act s 44-8A)

 (1) This Part specifies matters, for paragraph 448A (4) (c) of the Act, on the basis of which the Minister may determine different amounts (including nil amounts) of the charge exempt resident supplement for a particular day.

 (2) This Part also specifies circumstances in which, for subsection 448A (5) of the Act, the charge exempt resident supplement is not payable to a provider.

 (3) This Part also specifies persons, for subsection 448A (6) of the Act, to whom the Secretary must pay charge exempt resident supplement in certain circumstances.

21.13B Matters for determining supplement

  For the purposes of paragraph 448A (4) (c) of the Act, the following matters are specified:

 (a) the amount by which the maximum rate of concessional resident supplement is greater than $12.17;

 (b) if the care recipient has paid an accommodation charge as an assisted resident — the amount of the difference between the charge exempt resident supplement and the rate of concessional resident supplement paid to the provider.

21.13C Circumstances in which supplement is not payable to provider

 (1) For the purposes of subsection 448A (5) of the Act, the following circumstances are specified:

 (a) the provider:

 (i) uses its best endeavours to find the care recipient or, if the care recipient is deceased, the care recipient’s legal representative or another person specified in these Principles for paragraph 44-8A (6) (a) of the Act; and

 (ii) cannot find a person mentioned in subparagraph (i);

 (b) the Secretary imposes a sanction, under section 66-1 of the Act, on the provider;

 (c) the Secretary is to refund the amount to the care recipient, or to another person specified in these Principles for paragraph 44-8A (6) (a) of the Act.

 (2) If the Secretary makes a determination under subsection 448A (5) of the Act, in a circumstance specified in subsection (1), the Secretary must give written notice of the determination to the provider.

21.13D Persons to whom supplement may be paid

  For the purposes of paragraph 448A (6) (a) of the Act, the following persons are specified:

 (a) an executor of the care recipient’s estate;

 (b) a person appointed by a state or territory guardianship board (however described) to deal with the care recipient’s estate;

 (c) an authorised nominee of the care recipient;

 (d) a person who holds an enduring power of attorney for the care recipient.

[3] Section 21.14

substitute

21.14 Purpose of Part (Act s 44-10)

 (1) This Part specifies how the value of a person’s assets is to be worked out for the definitions of assisted resident, charge exempt resident and concessional resident.

 (2) The value of the person’s assets is also used to work out:

 (a) the maximum amount of an accommodation bond under section 5712 of the Act (see subsection 5712 (4) of the Act); and

 (b) the maximum daily accrual amount of an accommodation charge under section 57A6 of the Act (see subsection 57A6 (3) of the Act).

[4] Subsection 21.15 (6)

omit

[5] Subsection 21.32B (3), at the foot

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Note 1   Paragraph 8 (8) (zn) of the Social Security Act 1991 and para 5H (8) (nc) of the Veterans’ Entitlements Act 1986 describe how, for the purposes of each Act, income is defined for a person who is accruing a liability to pay an accommodation charge.

Note 2   Subsection 5L (6A) of the Veterans’ Entitlements Act 1986 describes how, for the purposes of that Act, assets are defined for a person who is accruing a liability to pay an accommodation charge.

Note 3   Section 16 of the Social Security Act 1991 and s 17A of the Veterans’ Entitlements Act 1986 describe how, for the purposes of each Act, income is defined in relation to a person who first became a charge exempt resident before the commencement of Sch 1, 2 and 3 to the Aged Care Amendment (Omnibus) Act 1999.

 

Overview

The Residential Care Subsidy Amendment Principles 1999 (No. 2) were made under the Aged Care Act 1997 by Bronwyn Kathleen Bishop, the Minister for Aged Care, on 20 October 1999. These principles aim to amend the Residential Care Subsidy Principles 1997 to align with the Aged Care Amendment (Omnibus) Act 1999. The key purpose of these principles is to specify the matters for determining different amounts of the charge exempt resident supplement, circumstances in which the supplement is not payable to a provider, and persons to whom the supplement may be paid. This legislative instrument is intended to provide a clear framework for the calculation and distribution of the charge exempt resident supplement within the aged care system. The policy objective of these principles is to ensure that the aged care subsidy system is fair and efficient, providing adequate support to care recipients while also ensuring that residential care providers are properly compensated for the services they provide. By specifying the criteria for determining the charge exempt resident supplement, the principles aim to prevent any undue financial burden on either care recipients or providers. This is achieved by clarifying the conditions under which the supplement may be adjusted or withheld, thereby promoting transparency and accountability within the aged care subsidy framework.

Scope and Application

The Residential Care Subsidy Amendment Principles 1999 (No. 2) is a legislative instrument made under the Aged Care Act 1997 by the Minister for Aged Care, Bronwyn Kathleen Bishop. These principles apply to entities and individuals involved in the residential care of aged individuals in Australia, specifically targeting the calculation and payment of the residential care subsidy. The principles amend the Residential Care Subsidy Principles 1997, impacting the financial arrangements between care providers and the government, particularly concerning the charge exempt resident supplement. The principles apply across Australia as they are governed by Commonwealth legislation, extending their reach to all states and territories. However, the principles do not specify any exclusions or exemptions, thereby applying broadly to all relevant entities unless otherwise defined in subordinate instruments or specific legislation. The principles also extend their application through subordinate instruments, which may further detail the implementation and specific application contexts of the amended principles.

Key Provisions

The Residential Care Subsidy Amendment Principles 1999 (No. 2) (the "Principles") made under section 96-1(1) of the Aged Care Act 1997, primarily amend the Residential Care Subsidy Principles 1997. These Principles establish criteria for the Minister to determine different amounts of the charge exempt resident supplement, specify circumstances where this supplement is not payable to a provider, and identify who can receive this supplement under certain conditions (section 21.13A-D). The Principles also specify how the value of a person's assets is determined for the purposes of calculating the maximum amount of an accommodation bond and the maximum daily accrual amount of an accommodation charge (section 21.14). The Act imposes several obligations on parties and entities it governs. For instance, providers must use their best endeavours to locate the care recipient or their legal representative if they are unable to determine whether the charge exempt resident supplement is payable (section 21.13C(1)(a)). Additionally, the Secretary must give written notice to the provider if the supplement is not payable under specified circumstances (section 21.13C(2)). The Act also mandates that the value of a person's assets be calculated according to the specified criteria for determining the maximum amount of an accommodation bond and the maximum daily accrual amount of an accommodation charge (section 21.14). The Principles include provisions that outline the potential consequences for non-compliance. For example, if a provider fails to use their best endeavours to find the care recipient or their legal representative, the charge exempt resident supplement may not be payable (section 21.13C(1)(a)). Furthermore, if the Secretary imposes a sanction on the provider under section 66-1 of the Aged Care Act 1997, the supplement may also not be payable (section 21.13C(1)(b)). Additionally, if the Secretary determines that the supplement should be refunded to the care recipient or another specified person, the supplement is not payable to the provider (section 21.13C(1)(c)). While the Principles do not specify maximum penalties for these breaches, the Aged Care Act 1997 provides for various penalties for non-compliance, which may include fines and other sanctions.

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