User Rights Principles Amendment (No. 7) 1997

Administered by Department of Health, Disability and Ageing

Legislation au F1998B00279 Not in force Legislative Instrument

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Aged Care Act 1997

User Rights Principles Amendment (No. 7) 1997

I, WARWICK SMITH, Minister for Family Services, make the following Principles under subsection 96-1 (1) of the Aged Care Act 1997.

Dated 23 December 1997.

 

 

 

 

WARWICK SMITH

Minister for Family Services

____________

1.   Citation

1.1   These Principles may be cited as the User Rights Principles Amendment (No. 7) 1997.

2.   Amendment

2.1   The User Rights Principles 19971 are amended as set out in these Principles.

3.   Commencement

3.1   These Principles commence on 24 December 1997.

4.   Section 23.3 (Definitions)

4.1   Definition of “complying former hostel”:

Omit the definition, substitute:

complying aged care service means an aged care service that complies with Division 3A (Prudential requirements for complying aged care services).”.

4.2   Insert the following definition:

key personnel has the same meaning as in paragraph 9-1 (2) (a) of the Act.”.

5.   Section 23.28 (Information about accommodation bonds)

5.1   Subsection 23.28 (3):

Omit “former hostel”, substitute “aged care service”.

6.   Section 23.33 (Application)

6.1   Subsection 23.33 (2):

Omit “former hostel”, substitute “aged care service”.

7.   Section 23.34 (Aged Care Accommodation Bond Trust)

7.1   Add at the end:

“(4) However, the Trust must not accept an accommodation bond after 23 December 1997.”.

8.   Section 23.38A (Complying aged care services—refunds)

8.1   Omit “former hostel”, substitute “aged care service”.

9.   Division 3A (Prudential requirements for former hostels)

9.1   Omit the heading, substitute:

Division 3A—Prudential requirements for complying aged care services”.

10.   Section 23.40A (Purpose of Division (Act, s 57-4))

10.1   Omit “approved hostels under section 10B of the Aged or Disabled Persons Care Act 1954 on 30 September 1997”, substitute “aged care services that have charged or want to be able to charge accommodation bonds”.

11.   Section 23.40B (Requirements)

11.1   Omit the section, substitute:

23.40B Requirements

“(1) The approved provider must, by written agreement, guarantee repayment of each accommodation bond balance in accordance with the Act to the care recipient who paid the bond.

“(2) Within 4 months after the end of each financial year for an approved provider, the approved provider must:

 (a) give a written statement that complies with subsections (3) and (4) to the Secretary; and

 (b) give a copy of the statement to each care recipient of the approved provider who has paid an accommodation bond that has not been repaid.

“(3) The statement must state that:

 (a) care recipients’ accommodation bond balances required to be repaid during the year have been repaid in accordance with the Act; and

 (b) the approved provider can repay liabilities, for accommodation bond balances in accordance with the Act, that can be expected to fall due in the following financial year; and

 (c) the approved provider has, throughout the year, had 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.

“(4) The statement must be:

 (a) approved by the company directors or other key personnel of the approved provider; and

 (b) certified or qualified by an independent auditor or accountant.

“(5) The approved provider must also give a copy of the latest statement under this section to each prospective care recipient.”.

12.   Section 23.42 (Criteria for approval of prudential requirements)

12.1   Add at the end:

“(3) However, prudential requirements under this Division cannot be approved after 23 December 1997.”.

13.   Section 23.46A (Complying aged care services—refunds)

13.1   Omit “former hostel”, substitute “aged care service”.

 

NOTE

1.  User Rights Principles 1997 notified in the Commonwealth of Australia Gazette on 29 September 1997, as amended by:

User Rights Principles Amendment (No. 1) 1997 notified in the Commonwealth of Australia Gazette on 29 September 1997;

User Rights Principles Amendment (No. 2) 1997 notified in the Commonwealth of Australia Gazette on 3 November 1997;

User Rights Principles Amendment (No. 3) 1997 notified in the Commonwealth of Australia Gazette on 6 November 1997;

User Rights Principles Amendment (No. 4) 1997 notified in the Commonwealth of Australia Gazette on 10 November 1997;

User Rights Principles Amendment (No. 5) 1997 notified in the Commonwealth of Australia Gazette on 21 November 1997;

User Rights Principles Amendment (No. 6) 1997 notified in the Commonwealth of Australia Gazette on 3 December 1997.

Overview

The Aged Care Act 1997, as amended by the User Rights Principles Amendment (No. 7) 1997, was enacted to address the need for enhanced protections and rights for users of aged care services in Australia. The Act was introduced by Warwick Smith, the Minister for Family Services, and was passed by the Parliament of Australia. The primary objective of this legislation is to strengthen the rights of aged care users by ensuring they receive high-quality care and are informed about their rights and the services provided. This amendment specifically focuses on updating the User Rights Principles to better align with the evolving standards of aged care, ensuring that care recipients are fully aware of their entitlements and the obligations of service providers. The changes include clarifying definitions, updating references to reflect current terminology, and setting out new requirements for approved providers in relation to the management and repayment of accommodation bonds.

Scope and Application

The User Rights Principles Amendment (No. 7) 1997 amends the User Rights Principles 1997 under the Aged Care Act 1997, affecting the operation of aged care services within Australia. This legislation applies to aged care services that have charged or wish to charge accommodation bonds, encompassing both the providers and the recipients of these services. It mandates that approved providers of aged care services must guarantee the repayment of accommodation bond balances to care recipients, as well as provide financial statements and insurance documentation to the Secretary and care recipients. Notably, the Act stipulates that prudential requirements for aged care services cannot be approved after 23 December 1997, and the Aged Care Accommodation Bond Trust is prohibited from accepting any accommodation bonds after this date. These amendments ensure that the principles governing aged care services are updated to reflect current standards and requirements, thereby safeguarding the interests of care recipients.

Key Provisions

The main operative sections of the User Rights Principles Amendment (No. 7) 1997 pertain to the definition of “complying aged care service” (section 23.3) and the requirements for aged care services that charge accommodation bonds (section 23.40B). Section 23.3 redefines “complying aged care service” as an aged care service that meets the prudential requirements outlined in Division 3A of the Aged Care Act 1997. Section 23.40B specifies that approved providers of aged care services must guarantee repayment of accommodation bond balances, provide written statements to the Secretary and care recipients regarding bond repayments, and ensure they have sufficient insurance coverage for potential losses that could affect their ability to repay bonds. The obligations imposed by these sections include the requirement for approved providers to enter into a written agreement guaranteeing the repayment of accommodation bond balances to care recipients who have paid such bonds. Additionally, within four months after the end of each financial year, approved providers must submit a written statement to the Secretary and a copy to each care recipient that certifies the repayment of bond balances, the provider's ability to repay future liabilities, and the provider's insurance coverage for insurable events that could impact bond repayments. The statement must be approved by the company's directors or other key personnel and certified or qualified by an independent auditor or accountant. Furthermore, approved providers must provide a copy of the latest statement to prospective care recipients. The amendments introduce civil and criminal consequences for non-compliance with the provisions. For instance, failure to guarantee repayment of accommodation bond balances as required by section 23.40B could result in civil penalties. Furthermore, the Act prohibits the acceptance of accommodation bonds by the Aged Care Accommodation Bond Trust after 23 December 1997. Non-compliance with this prohibition may also attract civil penalties. Although the specific maximum penalties are not detailed in the excerpt provided, penalties for breaches of aged care legislation can vary and may include fines and other sanctions as prescribed by the relevant laws.

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