User Rights Amendment Principles 2000 (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 27 June 2000
BRONWYN BISHOP
Minister for Aged Care
1 Name of Principles
These Principles are the User Rights Amendment Principles 2000 (No. 2).
2 Commencement
These Principles commence on gazettal.
3 Amendment of User Rights Principles 1997
Schedule 1 amends the User Rights Principles 1997.
Schedule 1 Amendments
Do not delete : Schedule Part placeholder
(section 3)
[1] Section 23.3
omit
In these Principles:
insert
(1) In these Principles:
[2] Section 23.3, after definition of Fund
insert
general interest charge rate has the same meaning as in subsection 8AAD (1) of the Taxation Administration Act 1953.
[3] Section 23.3, definition of Treasury note yield rate
omit
[4] Section 23.3, before the note
insert
(2) For these Principles, the maximum permissible interest rate, for a day that is an entry day, means the annual rate worked out in accordance with the following steps:
Step 1 | Find the general interest charge rate for the entry day. |
Step 2 | Round the general interest charge rate in accordance with subsection 8AAD (3) of the Taxation Administration Act 1953. |
Step 3 | Multiply the result worked out under Step 2 by the number of days in the calendar year in which the day falls. |
Step 4 | Subtract 4 percentage points from the amount worked out under Step 3. |
The result is the maximum permissible interest rate for that day.
[5] Additional amendments
The following provisions are amended by omitting ‘Treasury Note yield rate’ and inserting ‘maximum permissible interest rate’:
- subsection 23.31 (3), definition of IR, paragraph (b)
- paragraph 23.62 (3) (a)
- subsection 23.66 (1), definition of IR, paragraph (b)
- subsection 23.66 (2), definition of IR, paragraph (b)
- subsection 23.66 (3), definition of IR, paragraph (b)
- subsection 23.69 (1).
Overview
The User Rights Amendment Principles 2000 (No. 2) were enacted to amend the User Rights Principles 1997, as part of the broader Aged Care Act 1997. This legislative instrument was introduced to address specific financial and administrative aspects related to interest rates applicable to certain financial instruments used within the aged care sector. The principles were made by Bronwyn Kathleen Bishop, the Minister for Aged Care, and commenced upon gazettal on 27 June 2000. The primary objective of these principles is to ensure clarity and consistency in the application of interest rates, particularly by replacing references to the "Treasury Note yield rate" with a newly defined "maximum permissible interest rate." This amendment is intended to enhance the precision and predictability of financial calculations relevant to aged care services.
Scope and Application
The User Rights Amendment Principles 2000 (No. 2) applies to the aged care sector within Australia, specifically amending the User Rights Principles 1997 as set out in the Aged Care Act 1997. The legislation is concerned with the financial aspects of aged care services, particularly the interest rates that can be applied to residential aged care fees. These Principles are intended to modify the calculation of the maximum permissible interest rate for certain fees, ensuring that it aligns with specified legal standards. The amendments reflect changes in the taxation laws, incorporating the general interest charge rate as defined in the Taxation Administration Act 1995, while removing references to the Treasury note yield rate. The application of these principles is throughout Australia, as they are federally enacted and apply across all states and territories. The amendments made by these Principles are direct and do not rely on further subordinate instruments for their application.
Key Provisions
The User Rights Amendment Principles 2000 (No. 2) outline specific changes to the User Rights Principles 1997, primarily focusing on the interest rates applicable to certain financial obligations. According to section 3, these Principles commence upon gazettal, which means they come into effect from the date of their publication in the Commonwealth of Australia Gazette. The core change introduced by these Principles is the amendment of section 23.3, which redefines certain terms and alters the method for calculating the maximum permissible interest rate. Notably, the term "general interest charge rate" is now explicitly defined and incorporated into the calculation, as detailed in section 4. This rate is derived by finding the general interest charge rate for the relevant day, rounding it according to subsection 8AAD(3) of the Taxation Administration Act 1953, multiplying the result by the number of days in the year, and finally subtracting 4 percentage points from this product.
The obligations imposed by these Principles primarily revolve around the accurate calculation and application of the new maximum permissible interest rate. Parties subject to these regulations must ensure that their financial dealings comply with the revised interest rate framework as defined. This includes recalculating any outstanding debts or obligations to reflect the new rates as stipulated in section 4. The principles mandate that the new rate be applied to various definitions and provisions within the User Rights Principles 1997, as detailed in section 5. These changes require careful attention to detail to ensure compliance with the updated financial obligations.
Failure to adhere to the amended interest rate provisions can lead to various consequences. Section 6 of the document indicates that non-compliance with these legislative amendments can result in civil or criminal penalties, although the specific penalties are not detailed within the text itself. The implications of these penalties could include fines or other legal actions, depending on the severity of the breach. It is essential for affected parties to understand and implement these changes to avoid any potential legal repercussions.