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.
Overview
The Residential Care Subsidy Amendment Principles 2000 (No. 4) were introduced to amend the Residential Care Subsidy Principles 1997, addressing the need to clarify and adjust the application of the payroll tax supplement for care recipients in residential care. Enacted under the Aged Care Act 1997, these principles were formulated by Bronwyn Kathleen Bishop, the Minister for Aged Care, and came into effect on 1 January 2001. The objective was to ensure that the payroll tax supplement is correctly applied to eligible care recipients in residential care, taking into consideration the distinction between registered and non-registered entities, and to provide a structured approach for calculating the supplement amount. This legislative instrument aims to streamline the process and ensure compliance with the stipulated conditions for both types of entities involved in residential care services.
Scope and Application
The Residential Care Subsidy Amendment Principles 2000 (No. 4) apply to care recipients who are receiving residential care from a residential care service operated by an approved provider, which includes both registered and non-registered entities. These Principles are applicable to care recipients who are not classified at the lowest level on the Resident Classification Scale under the Classification Principles 1997, but may also apply to those whose approval is limited to receipt of respite care provided as high or low level residential care. The approved provider must be a registered entity, which is registered with a revenue office of a State or Territory for the purposes of paying payroll tax, or a non-registered entity that has incurred a liability to pay payroll tax to a registered entity. The Principles are intended to address the payroll tax supplement payable to care recipients, which is determined by following the steps set out in the Aged Care (Payroll Tax Supplement) Determination 2001.
These Principles have a Commonwealth jurisdictional reach and apply nationally across Australia. There are no stated exclusions, exemptions, or thresholds specified in the Principles themselves, although the Aged Care (Payroll Tax Supplement) Determination 2001 may provide further detail on the calculation of the supplement. The application of the Principles may be extended or restricted through subordinate instruments, such as the Aged Care (Payroll Tax Supplement) Determination 2001.
Key Provisions
The Residential Care Subsidy Amendment Principles 2000 (No. 4) introduce key changes to the Residential Care Subsidy Principles 1997, specifically concerning the payroll tax supplement for care recipients. Section 21.25 outlines the criteria under which a payroll tax supplement applies to care recipients receiving residential care. This applies if the care recipient is receiving care from an approved provider who has incurred a payroll tax liability during the payment period (section 21.25(1)). This requirement also extends to care recipients whose approval is limited to receiving respite care provided as high or low-level residential care (section 21.25(2)). To qualify, the approved provider must be either a registered entity or a non-registered entity (section 21.25(3)), and must satisfy the Secretary that they have incurred a payroll tax liability according to the relevant conditions (sections 21.25(4) and 21.25(5)). The payroll tax supplement is payable daily for each care recipient, with the amount determined by the Aged Care (Payroll Tax Supplement) Determination 2001 (section 21.25(6)).
Under the amended principles, the Act imposes certain obligations on approved providers, particularly those categorised as non-registered entities. These entities must inform the Secretary at the end of each payment period about any variation in their payroll tax liability from the previous period and the extent to which their liability is affected by the change (section 21.25A). This notification requirement is essential for ensuring transparency and compliance with the new provisions. Additionally, approved providers must adhere to the specific conditions outlined in section 21.25A, which may include maintaining records and providing documentation to substantiate their payroll tax liabilities.
The Residential Care Subsidy Amendment Principles 2000 (No. 4) also outline the consequences for non-compliance with the new provisions. While the specific penalties are not detailed within the text provided, breaches of the Aged Care Act 1997 generally attract both civil and criminal penalties. Civil penalties can include fines up to a specified amount, as determined by the legislation. For criminal breaches, the penalties may include imprisonment, fines, or both, depending on the severity of the offence and the provisions of the Aged Care Act 1997. These penalties serve to enforce compliance and uphold the integrity of the residential care subsidy system.