Residential Care Subsidy Amendment Principles 2000 (No. 4)
I, BRONWYN KATHLEEN BISHOP, Minister for Aged Care, make these Principles under subsection 96-1 (1) of the Aged Care Act 1997.
Dated 21st December, 2000
BRONWYN BISHOP
Minister for Aged Care
1 Name of Principles
These Principles are the Residential Care Subsidy Amendment Principles 2000 (No. 4).
2 Commencement
These Principles commence on 1 January 2001.
3 Amendment of Residential Care Subsidy Principles 1997
Schedule 1 amends the Residential Care Subsidy Principles 1997.
Schedule 1 Amendment
(section 3)
[1] Section 21.25
substitute
21.25 Payroll tax supplement applies to care recipient
(1) Payroll tax supplement will apply to a care recipient in respect of a payment period if the care recipient is:
(a) receiving residential care from a residential care service operated by an approved provider described in subsection (3); and
(b) apart from a care recipient mentioned in subsection (2), not classified at the lowest level on the Resident Classification Scale under the Classification Principles 1997.
(2) For clarification, subsection (1) also applies to a care recipient whose approval is limited, under section 22-2 of the Act, to receipt of respite care provided as high or low level residential care.
(3) The approved provider must satisfy the Secretary that:
(a) the approved provider is:
(i) a registered entity; or
(ii) a non-registered entity; and
(b) the approved provider incurred a payroll tax liability in respect of the payment period, in accordance with subsection (4) or (5).
(4) An approved provider that is a registered entity must satisfy the Secretary that it incurred a payroll tax liability, in respect of the payment period, that is payable to the State or Territory revenue office (however described) with which it is registered for the purposes of paying payroll tax.
(5) An approved provider that is a non-registered entity must satisfy the Secretary that:
(a) it received, from a registered entity, an invoice including a cost breakdown showing, for the services provided, a salary and wages component and a payroll tax component; and
(b) it has incurred a liability to pay the amount of the payroll tax component to the registered entity; and
(c) in relation to the payment period, it complied with the conditions described in section 21.25A.
(6) The supplement is payable daily in respect of a care recipient.
Note The amount of payroll tax supplement payable for a care recipient, for each day that care is received, is worked out by following the steps set out in the Aged Care (Payroll Tax Supplement) Determination 2001. See also subsection 44-16 (3) of the Act.
21.25A Conditions for non-registered entities
If an approved provider is a non-registered entity, it must, at the end of each payment period, tell the Secretary:
(a) of any variation, in relation to the previous payment period, in its liability for payroll tax; and
(b) if so, to what extent its liability for payroll tax is affected by the change.
21.25B Definition of non-registered entity and registered entity
For subsections 21.25 and 21.25A:
non-registered entity means an entity that, despite not being a registered entity, has incurred a liability to pay payroll tax to a registered entity in relation to services provided to care recipients for the purposes of a residential care service.
Example
An approved provider will be more likely to be a non-registered entity if it is operated by a charitable, religious or government provider.
registered entity means an entity that is registered with a revenue office (however described) of a State or Territory for the purposes of paying payroll tax in accordance with the laws of that State or Territory.
Example
An approved provider will be more likely to be a registered entity if it is operated on a ‘for profit’ basis.