User Rights Amendment Principles 2004 (No. 1)
I, JULIE BISHOP, Minister for Ageing, make these Principles under subsection 96‑1 (1) of the Aged Care Act 1997.
Dated 25 June 2004
JULIE BISHOP
Minister for Ageing
1 Name of Principles
These Principles are the User Rights Amendment Principles 2004 (No. 1)
2 Commencement
These Principles commence on 1 July 2004.
3 Amendment of User Rights Principles 1997
Schedule 1 amends the User Rights Principles 1997.
Schedule 1 Amendments
(section 3)
[1] Subsection 23.81P (1)
omit everything before paragraph (a), insert
(1) For paragraph 57A-6 (1) (c) of the Act, the following amounts are specified for a person who first entered a residential care service for the provision of residential care (other than respite care) before 1 July 2004:
[2] After subsection 23.81P (2)
insert
(3) For paragraph 57A-6 (1) (c) of the Act, the following amounts are specified for a person who first entered a residential care service for the provision of residential care (other than respite care) on or after 1 July 2004:
(a) for an assisted resident — A;
(b) for any other care resident — B.
Note The specified amount applies only if paragraph 57A-6 (1) (a) or (b) does not apply.
(4) In subsection (3):
A is:
(a) for the financial year starting on 1 July 2004 — $9.30; or
(b) for a later financial year — the amount worked out under section 23.81Q for the financial year.
B is:
(a) for the financial year starting on 1 July 2004 — $16.25; or
(b) for a later financial year — the amount worked out under section 23.81Q for the financial year.
[3] Subsection 23.81Q (1), definition of earlier CPI number
substitute
earlier CPI number, for a financial year, means:
(a) for the purpose of working out an amount under subsection 23.81P (2):
(i) the CPI number for the last March quarter before the beginning of the financial year (the most recent earlier CPI number); or
(ii) if the CPI number for the March quarter of an earlier financial year that started on or after 1 July 1998 is higher than the most recent earlier CPI number — the higher CPI number; and
(b) for the purpose of working out an amount under subsection 23.81P (4):
(i) the CPI number for the last March quarter before the beginning of the financial year (the most recent earlier CPI number); or
(ii) if the CPI number for the March quarter of an earlier financial year that started on or after 1 July 2003 is higher than the most recent earlier CPI number — the higher CPI number.
[4] Subsection 23.81Q (1), definition of indexed element
substitute
indexed element means:
(a) for the purpose of working out an amount under subsection 23.81P (2) — the element X or Y mentioned in that subsection; or
(b) for the purpose of working out an amount under subsection 23.81P (4) — the element A or B mentioned in that subsection.
[5] Subsection 23.81Q (2)
substitute
(2) For the purpose of working out an amount under subsection 23.81P (2) for a financial year, if the latest CPI number is more than the earlier CPI number, the amount of each indexed element is increased on 1 July of the next financial year.
(2A) For the purpose of working out an amount under subsection 23.81P (4) for a financial year, if the latest CPI number is more than the earlier CPI number, the amount of each indexed element is increased on 1 July of the next financial year.
Overview
The User Rights Amendment Principles 2004 (No. 1), enacted by Julie Bishop, the Minister for Ageing, under the Aged Care Act 1997, were introduced to address the need for updated financial provisions for user rights in residential care services. The principles commenced on 1 July 2004 and aim to amend the User Rights Principles 1997 to better reflect the current economic conditions and the cost of providing residential care. These amendments are particularly focused on adjusting the specified amounts for different categories of care residents, ensuring that the financial contributions made by residents are fair and reflective of the actual costs incurred by care providers. The policy objective is to maintain a balance between the financial responsibilities of care recipients and the sustainability of the aged care system.
Scope and Application
The User Rights Amendment Principles 2004 (No. 1) apply to the principles governing user rights in residential aged care services as set out under the Aged Care Act 1997. These principles are specifically tailored to the financial contributions made by residents in residential care services, distinguishing between those who entered the care before and after 1 July 2004. The principles apply to all persons who are residents in a residential care service in Australia, which encompasses both assisted and other care residents. The application of these principles is nationwide, aligning with the federal structure of aged care services in Australia. Notably, the legislation does not explicitly outline any exclusions, exemptions, or thresholds within the primary text. However, the principles are subject to further interpretation and application through subordinate instruments which may provide additional clarifications or adjustments.
Key Provisions
The User Rights Amendment Principles 2004 (No. 1) amends the User Rights Principles 1997, specifically targeting the financial aspects related to the provision of residential care services in aged care facilities. Section 1 names the Principles as the User Rights Amendment Principles 2004 (No. 1), while Section 2 sets the commencement date for these Principles as 1 July 2004. Schedule 1 details the specific amendments to the User Rights Principles 1997, primarily adjusting the financial contributions required from residents based on the date they first entered a residential care service.
Under these amended principles, two categories of residents are identified: those who entered a residential care service for the provision of residential care before 1 July 2004, and those who entered on or after this date. For the former, specific financial contributions are outlined, while for the latter, the contributions are indexed to the Consumer Price Index (CPI). Section [1] specifies the financial contributions for pre-1 July 2004 residents, and Section [2] sets out the contributions for post-1 July 2004 residents, distinguishing between assisted residents and other care residents. Section [3] provides the specific amounts for each category, with Section [4] detailing how these amounts are calculated based on the CPI, and Section [5] explaining the process of indexing these amounts.
The obligations imposed by these Principles primarily concern the financial contributions expected from residents of aged care facilities. Service providers must ensure that the correct financial contributions are made by residents, based on their entry date into the service and the specified categories. Additionally, Section [3] requires that the contributions for post-1 July 2004 residents are indexed annually according to changes in the CPI, as defined in Section [4] and calculated as per Section [5]. This means that service providers must keep abreast of CPI changes and adjust the contributions accordingly.
Breaches of these financial obligations may not explicitly result in penalties within the text of these Principles. However, failure to adhere to the specified financial contributions and indexing requirements could potentially lead to civil consequences, such as disputes or claims by residents regarding their care fees. There are no stated criminal penalties in the text, but non-compliance might attract scrutiny from regulatory bodies overseeing aged care services in Australia. The precise consequences of non-compliance would depend on the broader legal framework governing aged care services.