User Rights Amendment Principles 2003 (No. 1)
I, KEVIN JAMES ANDREWS, Minister for Ageing, make these Principles under subsection 96‑1 (1) of the Aged Care Act 1997.
Dated 27 August 2003
KEVIN ANDREWS
Minister for Ageing
1 Name of Principles
These Principles are the User Rights Amendment Principles 2003 (No. 1).
2 Commencement
These Principles commence on 1 September 2003.
3 Amendment of User Rights Principles 1997
Schedule 1 amends the User Rights Principles 1997.
Schedule 1 Amendments
(section 3)
[1] Before section 23.82
insert in Part 5
Division 1 Amounts additional to maximum daily amount
[2] Section 23.82
substitute
23.82 Purpose of Division (Act, s 58-1)
This Division specifies amounts that may be added to the maximum daily amount of resident fees set under section 58-2 of the Act.
[3] After section 23.83A
insert in Part 5
Division 2 Maximum daily amount — other agreed amounts
23.83B Purpose of Division (Act, s 58-2)
This Division specifies the circumstances in which an amount agreed between a care recipient and an approved provider may be included at step 5 of the resident fee calculator in working out the maximum daily amount of resident fees for the care recipient.
23.83C Approved care recipients in unfunded places
(1) For step 5 of the resident fee calculator in section 58‑2 of the Act, the maximum daily amount of resident fees (the maximum daily fee) payable by the care recipient may include an amount agreed between the care recipient and the approved provider if:
(a) the approved provider complies with subsections (2) and (3) as applicable to the care recipient; and
(b) the care recipient agrees to pay the amount before it is incurred; and
(c) on the day:
(i) the care recipient is an approved care recipient; and
(ii) the place in the service through which residential care is provided to the care recipient (the care recipient’s place) is unfunded.
(2) If the approved provider seeks an agreement, from an approved care recipient receiving care through the service in an unfunded place, to charge the care recipient an amount under step 5 (an additional amount), the approved provider must, before the care recipient so agrees, inform the care recipient (or his or her representative) in writing that:
(a) the proposed maximum daily fee payable by the care recipient is more than the maximum that would have been payable if the care recipient’s place were funded; and
(b) the approved provider cannot ask the care recipient to leave the service merely because the care recipient does not agree to pay the additional amount.
Note After the care recipient has agreed to the additional amount, the approved provider may ask the care recipient to leave the service if the care recipient has not paid the agreed amount in the circumstances mentioned in paragraph 23.5 (3) (b).
(3) If the approved provider seeks an agreement, from an approved care recipient proposing to enter the service to receive care in an unfunded place, to charge the care recipient an additional amount, the approved provider must, before the care recipient so agrees, inform the care recipient (or his or her representative) in writing that the proposed maximum daily fee payable by the care recipient is more than the maximum that would have been payable if the care recipient’s place were funded.
(4) In this section:
(a) approved care recipient means a person who is approved under Part 2.3 of the Act as a recipient of residential care; and
(b) a care recipient’s place is funded if residential care subsidy is payable under Chapter 3 of the Act for the provision of care to the care recipient through the service; and
(c) a care recipient’s place is unfunded if residential care subsidy otherwise payable under Chapter 3 of the Act for the provision of care to the care recipient through the service is not payable because of paragraph 42‑1 (2) (a) of the Act.
Note Under paragraph 42‑1 (2) (a) of the Act, an approved provider is not eligible for residential care subsidy in respect of a care recipient if residential care provided to the care recipient is excluded (see section 42‑7 of the Act) because the approved provider exceeds the approved provider’s allocation of places for residential care subsidy.
Overview
The User Rights Amendment Principles 2003 (No. 1) were enacted to address specific issues surrounding the calculation and disclosure of fees for residential care recipients under the Aged Care Act 1997. These principles were introduced to amend the User Rights Principles 1997, enhancing the transparency and fairness in the process of determining the maximum daily fees that care recipients must pay. Enacted by the Minister for Ageing, Kevin James Andrews, under the authority of the Aged Care Act 1997, the policy objective of these principles is to ensure that care recipients are adequately informed about the financial implications of receiving care in unfunded places, thereby protecting their rights and interests. The principles came into effect on 1 September 2003, aiming to provide clarity and protection to care recipients by mandating that providers disclose the financial impact of unfunded places and ensuring that care recipients understand the implications of such agreements before they are made.
Scope and Application
The User Rights Amendment Principles 2003 (No. 1) apply to individuals who are approved care recipients under the Aged Care Act 1997 and the approved providers who offer residential care services to these recipients. Specifically, these principles govern the financial arrangements between approved care recipients and providers, particularly in unfunded residential care places. This means that the legislation applies to care recipients who require residential care and the providers that offer such services, ensuring that any additional fees agreed upon are clearly communicated and consented to by the care recipient. Geographically, these principles apply across the Commonwealth of Australia, as they are an amendment to a federal act.
These principles exclude certain care recipients and providers from their scope, specifically those who are eligible for residential care subsidy under Chapter 3 of the Aged Care Act 1997. The principles also establish certain thresholds and conditions for additional fees that can be charged in unfunded care places, ensuring transparency and protection for care recipients. Additionally, the application and interpretation of these principles can be extended or clarified through subordinate instruments, allowing for specific regulations or guidelines to be issued under the authority of the Aged Care Act 1997.
Key Provisions
The User Rights Amendment Principles 2003 (No. 1) primarily concern the amendment of the User Rights Principles 1997. They introduce two new divisions under Part 5, which relate to the calculation of maximum daily resident fees in aged care facilities. Division 1 (section 23.82) specifies the amounts that can be added to the maximum daily amount of resident fees, while Division 2 (section 23.83B) outlines the circumstances under which an amount agreed between a care recipient and an approved provider can be included in the maximum daily amount calculation. The Principles clarify when and how additional fees may be charged in unfunded care recipient places.
These Principles impose certain obligations on approved providers in relation to the charging of fees to care recipients. An approved provider must inform the care recipient, or their representative, in writing about the proposed maximum daily fee if it exceeds the amount that would be payable in a funded place. This notification must occur before any agreement to charge an additional amount is made. Furthermore, the provider must ensure that the care recipient agrees to pay the additional amount before it is incurred. The provider must also assure the care recipient that they cannot be asked to leave the service merely because they do not agree to pay the additional amount.
Breach of these obligations could lead to various consequences. Although the specific offences and penalties are not detailed within the provided text, the Aged Care Act 1997 under which these Principles are made, likely includes provisions for enforcement. Non-compliance with the notification requirements and proper agreement procedures could result in civil or administrative penalties. The exact nature and severity of these penalties would depend on the specific provisions of the Aged Care Act and any relevant case law or administrative rulings. However, it is clear that adhering to these obligations is crucial to avoid any potential repercussions for the approved provider.