User Rights Amendment Principles 2001 (No. 2)
I, BRONWYN KATHLEEN BISHOP, Minister for Aged Care, make these Principles under section 96-1 of the Aged Care Act 1997.
Dated 5th October, 2001
BRONWYN BISHOP
Minister for Aged Care
1 Name of Principles
These Principles are the User Rights Amendment Principles 2001 (No. 2).
2 Commencement
These Principles commence on gazettal.
3 Amendment of User Rights Principles 1997
Schedule 1 amends the User Rights Principles 1997.
4 Transitional
(1) Subsection 23.40B (3) of the User Rights Principles 1997, as in force immediately before the commencement date, continues to apply to a statement by an approved provider if the financial year to which the statement relates ends before that date.
(2) If a statement by an approved provider relates to a financial year that ends on or after the commencement date but covers a period (the earlier period) before that date:
(a) paragraph 23.40B (3) (c) of the User Rights Principles 1997, as in force immediately before that date, continues to apply to the statement as if the reference to the year in that paragraph were a reference to the earlier period; and
(b) paragraph 23.40B (3) (d) of the User Rights Principles 1997, as amended by these Principles, applies to the statement as if the reference to the year in that paragraph were a reference to the part of the financial year that falls within the period commencing on that date.
(3) In this section:
commencement date means the date of commencement of these Principles.
Schedule 1 Amendments
(section 3)
[1] Subsection 23.40B (1)
substitute
(1) The approved provider must give each care recipient who has paid an accommodation bond a written guarantee of refund of the accommodation bond balance to the care recipient in accordance with the Act.
(1A) The approved provider must have, throughout the year, enough insurance to cover losses arising from fraud, loss of earnings, fire, flood or other reasonably insurable events that may affect the ability of the approved provider to refund accommodation bond balances.
[2] Paragraph 23.40B (2) (b)
omit
repaid.
insert
refunded.
[3] Subsection 23.40B (3)
substitute
(3) The statement must state:
(a) whether accommodation bond agreements required to be entered into during the year between the approved provider and care recipients have been entered into in accordance with the Act; and
(b) whether the approved provider has given each care recipient who has paid an accommodation bond during the year a written guarantee in accordance with subsection (1); and
(c) whether the accommodation bond balances required to be refunded during the year by the approved provider to care recipients have been refunded in accordance with the Act; and
(d) whether the approved provider has, in accordance with subsection (1A), had enough insurance, throughout the year, to cover losses arising from fraud, loss of earnings, fire, flood or other reasonably insurable events that may affect the ability of the approved provider to refund accommodation bond balances; and
(e) whether the approved provider can repay, in accordance with the Act, liabilities for accommodation bond balances that can be expected to fall due in the following financial year; and
(f) whether the approved provider has, during the year, given a copy of the latest statement to each care recipient in accordance with paragraph (2) (b) and to each prospective care recipient in accordance with subsection (5).
Overview
The User Rights Amendment Principles 2001 (No. 2) were introduced to address specific gaps in the existing User Rights Principles 1997, particularly in relation to the financial security and protection of care recipients who have paid accommodation bonds. Enacted under the Aged Care Act 1997, these Principles were formulated by Bronwyn Kathleen Bishop, the Minister for Aged Care, with the primary aim of enhancing the financial safeguards for care recipients. These amendments focus on ensuring that approved providers have adequate insurance coverage to manage risks that could affect their ability to refund accommodation bonds. By mandating written guarantees of refund for accommodation bond balances and requiring sufficient insurance coverage, the Principles aim to provide greater financial security and accountability to care recipients within the aged care system. These Principles came into effect upon gazettal, ensuring that any amendments apply immediately and do not require additional legislative action.
Scope and Application
The User Rights Amendment Principles 2001 (No. 2) applies to approved providers within the aged care sector in Australia, specifically those who deal with accommodation bonds paid by care recipients. These Principles amend the User Rights Principles 1997 to enhance the rights and protections of care recipients. They are applicable under the Commonwealth jurisdiction, impacting entities across Australia that are approved providers in the aged care industry. The legislation ensures that approved providers must provide written guarantees of refund for accommodation bonds, maintain sufficient insurance coverage for potential losses, and accurately report on compliance with these obligations in their annual statements. The transitional provisions ensure a smooth implementation, allowing existing financial years to continue under previous rules until completion, and applying new rules to subsequent periods. Any exclusions or exemptions are not explicitly stated within the text provided, and the scope of application is primarily directed towards ensuring the financial security and rights of care recipients in relation to accommodation bonds.
Key Provisions
The User Rights Amendment Principles 2001 (No. 2) primarily amend the User Rights Principles 1997, which are part of the Aged Care Act 1997. The key operative sections of these Principles are found in Schedule 1, where specific amendments are made to the original Principles. For instance, section 23.40B(1) is substituted to require approved providers to give each care recipient who has paid an accommodation bond a written guarantee of refund of the accommodation bond balance in accordance with the Act. Additionally, section 23.40B(1A) mandates that approved providers must maintain sufficient insurance throughout the year to cover losses from fraud, loss of earnings, fire, flood, or other reasonably insurable events that could affect their ability to refund accommodation bond balances.
The amended Principles impose several obligations and requirements on approved providers. Firstly, they must ensure that all care recipients who have paid an accommodation bond receive a written guarantee of the refund of their bond balance. This guarantee must be provided in accordance with the Act, ensuring clarity and legal compliance. Secondly, approved providers must maintain adequate insurance coverage throughout the year to cover potential losses from specified events, thereby safeguarding their ability to fulfill bond refund obligations. Thirdly, the amended Principles require approved providers to provide specific statements to care recipients and prospective care recipients, ensuring transparency and adherence to the Act.
Failure to comply with the provisions of the User Rights Amendment Principles 2001 (No. 2) can lead to various consequences. While the legislation does not explicitly detail specific penalties or sanctions for non-compliance, breaches of the Aged Care Act 1997 and its related principles can result in legal action, fines, or other civil and criminal penalties as determined by relevant authorities. The specific consequences for non-compliance would depend on the nature and severity of the breach, as well as any applicable regulations or guidelines.