Commonwealth Consolidated Acts

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AGED CARE ACT 1997 - SECT 48.7

The care subsidy reduction

             (1)  The care subsidy reduction for the care recipient for the * payment period is the sum of all the care subsidy reductions for days during the period on which the care recipient is provided with home care through the home care service in question.

             (2)  Subject to this section and section 48-8, the care subsidy reduction for a particular day is worked out as follows:

Care subsidy reduction calculator

Step 1.   Work out the care recipient's total assessable income on a yearly basis using section 44-24.

Step 2.   Work out the care recipient's total assessable income free area using section 44-26.

Step 3.   If the care recipient's total assessable income does not exceed the care recipient's total assessable income free area, the care subsidy reduction is zero.

Step 4.   If the care recipient's total assessable income exceeds the care recipient's total assessable income free area but not the income threshold , the care subsidy reduction is equal to the lowest of the following:

               (a)     the sum of the basic subsidy amount for the care recipient and all primary supplements for the care recipient;

              (b)     50% of the amount by which the care recipient's total assessable income exceeds the income free area (worked out on a per day basis);

               (c)     the amount (the first cap ) determined by the Minister by legislative instrument for the purposes of this paragraph.

Step 5.   If the care recipient's total assessable income exceeds the income threshold , the care subsidy reduction is equal to the lowest of the following:

               (a)     the sum of the basic subsidy amount for the care recipient and all primary supplements for the care recipient;

              (b)     50% of the amount by which the care recipient's total assessable income exceeds the income threshold (worked out on a per day basis) plus the amount specified in paragraph (c) of step 4;

               (c)     the amount (the second cap ) determined by the Minister by legislative instrument for the purposes of this paragraph.

             (3)  If the care recipient has not provided sufficient information about the care recipient's income for the care recipient's care subsidy reduction to be determined, the care subsidy reduction is equal to the lesser of the following:

                     (a)  the sum of the basic subsidy amount for the care recipient and all primary supplements for the care recipient;

                     (b)  the second cap.

             (4)  If, apart from this subsection, the sum of all the * combined care subsidy reductions made for the care recipient during a * start-date year for the care recipient would exceed the annual cap applying at the time for the care recipient, the care subsidy reduction for the remainder of the start-date year is zero.

             (5)  If, apart from this subsection, the sum of all the previous * combined care subsidy reductions made for the care recipient would exceed the lifetime cap applying at the time, the care subsidy reduction for the remainder of the care recipient's life is zero.

             (6)  The income threshold is the amount determined by the Minister by legislative instrument.

             (7)  The annual cap , for the care recipient, is the amount determined by the Minister by legislative instrument for the class of care recipients of which the care recipient is a member.

             (8)  The lifetime cap is the amount determined by the Minister by legislative instrument.



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