EXPLANATORY STATEMENT
RESIDENTIAL CARE SUBSIDY AMENDMENT PRINCIPLES 2007 (NO. 2)
Section 44-10 of the Aged Care Act 1997 states the Residential Care Subsidy Principles 1997 may provide a methodology for working out the value of a person’s assets. This methodology is contained in section 21.15 of the Residential Care Subsidy Principles. The value of a person’s assets is an important criterion in Division 44 of the Aged Care Act for assessing whether a person is eligible for concessional resident or assisted resident supplement, or is eligible to pay an accommodation payment (i.e. an accommodation bond or accommodation charge).
The Social Security and Veterans’ Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 amended social security legislation and the Veterans’ Entitlements Act 1986 to provide for a one-off compensation payment to Australians held captive by Axis forces during World War II, or their surviving widows or widowers. The payment recognises the hardship and suffering experienced by such people. The payment will be made to eligible veterans, widows or widowers who were alive on 1 January 2007. The relevant provisions in the amending legislation took effect on 11 May 2007.
In line with the treatment of these compensation payments under social security law and the Veterans’ Entitlements Act 1986, this amendment provides that the value of a person’s assets for the purpose of Division 44 of the Aged Care Act will be reduced by the amount of the compensation payment. This is to ensure that Australians receiving this one-off compensation payment receive the full value of the compensation and that it will make no difference to their entitlements under the Aged Care Act 1997.
The amendments in Schedule 1 are being commenced retrospectively to align with the date of effect of the relevant provisions in the Social Security and Veterans’ Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007. The retrospective commencement ensures that any person whose entitlements under the Aged Care Act 1997 were determined in the period from 11 May 2007 to the date of registration of this amendment on the Federal Register of Legislative Instruments is not disadvantaged in comparison to any other recipients of the payment.
As the purpose of this amendment is to ensure that people who receive the one-off compensation payment are not disadvantaged under the Aged Care Act, it does not adversely affect the rights of or impose liabilities on any person. As such it does not contravene the rule against retrospectivity in subsection 12(2) of the Legislative Instruments Act 2003.
Consultation
The Department of Veterans’ Affairs has been consulted on this matter.
ATTACHMENT
NOTES ON CLAUSES
1. Name of Principles
Section 1 introduces the Principles as the Residential Care Subsidy Amendment Principles (No. 2).
2. Commencement
Section 2 states that these Principles commence on 11 May 2007.
3. Schedule 1
Item 1 paragraph 21.15 (6) (c)
This item a makes provision for inserting a new paragraph 21.15 (6) (d).
Item 2 paragraph 21.15 (6)
This item adds a new paragraph to reduce the value of a person’s assets by the amount of any compensation payment received by that person under the Social Security and Veterans’ Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007.