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This is a Bill, not an Act. For current law, see the Acts databases.
AGED CARE AMENDMENT (2005 MEASURES NO. 1) BILL 2005
2004-2005
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Aged Care Amendment (2005 Measures
No. 1) Bill 2005
No. , 2005
(Ageing)
A Bill for an Act to amend the law relating to aged
care, and for related purposes
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 ii
Contents
1 Short
title ...........................................................................................1
2 Commencement.................................................................................1
3 Schedule(s) ........................................................................................2
Schedule 1--Flexible care
3
Aged Care Act 1997
3
Schedule 2--Entry contributions
10
Aged Care Act 1997
10
Aged Care (Consequential Provisions) Act 1997
12
Schedule 3--Prudential requirements
13
Aged Care Act 1997
13
Schedule 4--Refunds of accommodation bond balances
15
Aged Care Act 1997
15
Schedule 5--Requirement to give information
17
Aged Care Act 1997
17
Schedule 6--Annual report
19
Aged Care Act 1997
19
Schedule 7--Regulations
20
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 1
A Bill for an Act to amend the law relating to aged
1
care, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Aged Care Amendment (2005
5
Measures No. 1) Act 2005.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day on which this Act receives the
Royal Assent.
2. Schedules 1 to
7
A single day to be fixed by Proclamation.
However, if any of the provision(s) do not
commence within the period of 6 months
beginning on the day on which this Act
receives the Royal Assent, they commence
on the first day after the end of that period.
Note:
This table relates only to the provisions of this Act as originally
1
passed by the Parliament and assented to. It will not be expanded to
2
deal with provisions inserted in this Act after assent.
3
(2) Column 3 of the table contains additional information that is not
4
part of this Act. Information in this column may be added to or
5
edited in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Flexible care Schedule 1
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 3
1
Schedule 1--Flexible care
2
3
Aged Care Act 1997
4
1 Paragraph 56-3(a)
5
Repeal the paragraph, substitute:
6
(a) to comply with the requirements of Division 57, and the User
7
Rights Principles, in relation to any
*
accommodation bond
8
charged for the care recipient's
*
entry to the flexible care
9
service through which the care is, or is to be, provided;
10
(aa) to comply with the requirements of the User Rights
11
Principles in relation to any
*
accommodation charge charged
12
for the care recipient's entry to the flexible care service
13
through which the care is, or is to be, provided;
14
2 Section 57-1
15
After "residential care service", insert "or flexible care service".
16
3 Subsection 57-2(1)
17
After "residential care service" (first occurring), insert ", or flexible care
18
service,".
19
4 Subparagraph 57-2(1)(aa)(i)
20
Omit "the person", substitute "if the accommodation bond is charged
21
for the entry of the care recipient to a residential care service--the care
22
recipient".
23
5 At the end of paragraph 57-2(1)(aa)
24
Add:
25
(iv) if the accommodation bond is charged for the entry of
26
the care recipient to a flexible care service--the care
27
recipient requires a level of care that corresponds to a
28
*
low level of residential care provided through a
29
residential care service;
30
6 Paragraph 57-2(1)(a)
31
Schedule 1 Flexible care
4 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
Before "the residential care service", insert "if the accommodation bond
1
is charged for the entry of the care recipient to a residential care
2
service--".
3
7 Paragraph 57-2(1)(c)
4
After "residential care service", insert "or flexible care service".
5
8 Paragraph 57-2(1)(f)
6
After "residential care service", insert "or flexible care service".
7
9 Paragraph 57-2(1)(k)
8
Before "the approved provider", insert "if the accommodation bond is
9
charged for the entry of the care recipient to a residential care service--
10
".
11
10 After paragraph 57-2(1)(k)
12
Insert:
13
(ka) if the accommodation bond is charged for the entry of the
14
care recipient to a flexible care service--the approved
15
provider must not use the accommodation bond for a purpose
16
that is not related to providing flexible care to care recipients,
17
or that does not comply with the prudential requirements (see
18
section 57-3);
19
11 Paragraph 57-2(1)(n)
20
Before "the approved provider", insert "if the accommodation bond is
21
charged for the entry of the care recipient to a residential care service--
22
".
23
12 After paragraph 57-2(1)(n)
24
Insert:
25
(na) if the accommodation bond is charged for the entry of the
26
care recipient to a flexible care service--the approved
27
provider must use the income derived from the
28
accommodation bond and the retention amount to improve
29
the quality and range of flexible care services;
30
13 Subsection 57-9(1)
31
After "residential care service" (first occurring), insert ", or flexible care
32
service,".
33
Flexible care Schedule 1
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 5
14 Paragraph 57-9(1)(a)
1
After "residential care service" (wherever occurring), insert "or flexible
2
care service".
3
15 Paragraph 57-9(1)(b)
4
After "residential care service", insert "or flexible care service".
5
16 Paragraph 57-9(1)(g)
6
After "residential care service" (wherever occurring), insert "or flexible
7
care service".
8
17 Paragraph 57-9(1)(h)
9
After "residential care service", insert "or flexible care service".
10
18 Subsection 57-12(1)
11
After "residential care service" (first occurring), insert "or flexible care
12
service".
13
19 Paragraph 57-12(1)(b)
14
After "residential care service", insert "or flexible care service".
15
20 Paragraph 57-12(2)(a)
16
After "residential care service", insert ", or flexible care service,".
17
21 Subsection 57-12(2)
18
After "residential care service" (second occurring), insert "or flexible
19
care service".
20
22 Paragraph 57-12(3)(a)
21
After "residential care service", insert "or flexible care service".
22
23 Paragraph 57-12(5)(a)
23
After "residential care service", insert "or flexible care service".
24
24 Subsection 57-12(5) (table item 1)
25
After "residential care service", insert "or flexible care service".
26
25 Paragraph 57-13(a)
27
Schedule 1 Flexible care
6 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
Omit "a residential care service (the original service)", substitute "an
1
aged care service (the original service) that is a residential care service
2
or a flexible care service".
3
Note:
The heading to section 57-13 is altered by omitting "residential" and substituting
4
"certain aged".
5
26 Paragraph 57-13(b)
6
After "residential care", insert ", or flexible care,".
7
27 Paragraph 57-13(c)
8
Omit "residential care service", substitute "aged care service that is a
9
residential care service or a flexible care service".
10
28 Subsection 57-15(2)
11
After "residential care", insert "or flexible care".
12
29 At the end of subsection 57-16(1)
13
Add "or flexible care service".
14
30 Subsection 57-16(2)
15
Omit "If", substitute "If the care recipient has entered a residential care
16
service and".
17
31 Subsection 57-16(2) (note 1)
18
Repeal the note, substitute:
19
Note 1:
However, under sections 57-18 and 57-20, amounts representing
20
income derived and retention amounts are payable from:
21
(a)
the date a care recipient
*
enters a residential care service that is
22
*
certified or a flexible care service; or
23
(b)
the date on which a residential care service is certified, if it was
24
not certified at the time a care recipient entered it.
25
32 Subsection 57-16(2) (note 2)
26
Repeal the note, substitute:
27
Note 2:
Paragraph 57-2(1)(e) in most cases requires the
*
accommodation bond
28
agreement to have been entered into before, or within 21 days after,
29
the care recipient's
*
entry to the service--this applies even if the care
30
recipient has entered a residential care service that was not
*
certified
31
at the time of the care recipient's entry to the service.
32
Flexible care Schedule 1
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 7
33 Paragraph 57-18(3)(a)
1
After "residential care service", insert "or flexible care service".
2
34 Subsection 57-18(6) (definition of due date)
3
Repeal the definition, substitute:
4
due date means:
5
(a) in relation to an
*
accommodation bond payable by a care
6
recipient for
*
entry to a residential care service--whichever
7
of the following days is applicable:
8
(i) the day on which the care recipient entered the
9
residential care service;
10
(ii) if the residential care service was not
*
certified on that
11
day--the day on which the residential care service was
12
certified; or
13
(b) in relation to an accommodation bond payable by a care
14
recipient for entry to a flexible care service--the day on
15
which the care recipient entered the flexible care service.
16
35 Subsection 57-20(3)
17
Repeal the subsection, substitute:
18
(3) Subject to subsections (4) and (5), a retention amount may be
19
deducted from an
*
accommodation bond balance for each month,
20
or part of a month, during which the care recipient concerned is:
21
(a) provided with residential care through the residential care
22
service in respect of which the
*
accommodation bond was
23
paid; or
24
(b) provided with flexible care through the flexible care service
25
in respect of which the accommodation bond was paid.
26
36 Paragraph 57-20(4)(a)
27
After "residential care service", insert "or flexible care service".
28
37 Paragraph 57-20(4)(b)
29
After "if the service", insert "is a residential care service and".
30
38 Subsection 57-20(5) (note)
31
After "residential care", insert "or flexible care".
32
Schedule 1 Flexible care
8 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
39 Paragraph 57-20(6)(a)
1
After "residential care service", insert "or flexible care service".
2
40 Subsection 57-21(1)
3
After "residential care service" (first occurring), insert "or flexible care
4
service".
5
41 Paragraph 57-21(1)(b)
6
Repeal the paragraph, substitute:
7
(b) the care recipient ceases to be provided with:
8
(i) residential care by a residential care service conducted
9
by the approved provider (other than because the care
10
recipient is on
*
leave); or
11
(ii) flexible care provided in a residential setting by a
12
flexible care service conducted by the approved
13
provider; or
14
42 Paragraph 57-21(1)(c)
15
Before "the", insert "in respect of an accommodation bond paid for the
16
entry to a residential care service--".
17
43 Paragraph 57-21(3)(a)
18
Omit "residential care service", substitute "service to receive residential
19
care".
20
44 Subsection 57-22(1)
21
After "
*
leave)", insert ", or ceases to be provided with flexible care by a
22
flexible care service".
23
45 Subparagraph 57-22(1)(a)(ii)
24
Omit "the care recipient", substitute "in a case where the service is a
25
residential care service--the care recipient".
26
46 Subparagraph 57-22(2)(a)(i)
27
After "residential care", insert "or flexible care (as applicable)".
28
47 Paragraph 57-23(1)(a)
29
Flexible care Schedule 1
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 9
Omit "a residential care service (the original service)", substitute "an
1
aged care service (the original service) that is a residential care service
2
or a flexible care service".
3
48 Paragraph 57-23(1)(b)
4
After "residential care", insert "or flexible care".
5
49 Paragraph 57-23(1)(c)
6
Omit "residential care service (the later service)", substitute "aged care
7
service (the later service) that is a residential care service or a flexible
8
care service and".
9
50 Paragraph 66-1(j)
10
Repeal the paragraph, substitute:
11
(j) prohibiting the charging of
*
accommodation bonds, or the
12
accrual of
*
accommodation charges, for the
*
entry of care
13
recipients to:
14
(i) one or more specified residential care services; or
15
(ii) all residential care services; or
16
(iii) one or more specified flexible care services; or
17
(iv) all flexible care services;
18
conducted by the approved provider;
19
Schedule 2 Entry contributions
10 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
1
Schedule 2--Entry contributions
2
3
Aged Care Act 1997
4
1 After paragraph 56-1(a)
5
Insert:
6
(aa) to comply with the requirements of:
7
(i) the Prudential Standards made under section 57-4; and
8
(ii)
section
57-21B;
9
in relation to any
*
entry contribution given or loaned under a
10
*
formal agreement binding the approved provider and the
11
care recipient;
12
2 Before paragraph 56-3(b)
13
Insert:
14
(ab) to comply with the requirements of:
15
(i) the Prudential Standards made under section 57-4; and
16
(ii)
section
57-21B;
17
in relation to any
*
entry contribution given or loaned under a
18
*
formal agreement binding the approved provider and the
19
care recipient;
20
3 Division 57 (heading)
21
Repeal the heading, substitute:
22
Division 57--What are the responsibilities relating to
23
accommodation bonds and entry contributions?
24
4 At the end of section 57-1
25
Add:
26
If an approved provider has been given or loaned an
*
entry
27
contribution, several rules must be followed. The rules set out in
28
this Division relate particularly to prudential arrangements and
29
payment of interest on
*
entry contribution balances. Other rules are
30
Entry contributions Schedule 2
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 11
set out in section 71 of the Aged Care (Consequential Provisions)
1
Act 1997.
2
5 Before section 57-22
3
Insert:
4
57-21B Payment of interest on entry contribution balance
5
(1) An approved provider that is required under a
*
formal agreement to
6
refund an
*
entry contribution balance must pay an amount
7
representing interest on the entry contribution balance in the
8
circumstances (if any) specified in the User Rights Principles.
9
(2) The amount is to be worked out in accordance with the User Rights
10
Principles.
11
(3) The amount must be paid to the person specified in the User Rights
12
Principles in the way specified in the User Rights Principles.
13
6 Clause 1 of Schedule 1
14
Insert:
15
entry contribution, relating to a care recipient, means any
16
payment, made before 1 October 1997, of money or other valuable
17
consideration required by an
*
operator to be given or loaned in
18
return for, or in contemplation of,
*
entry of the care recipient to a
19
hostel (within the meaning of the Aged or Disabled Persons Care
20
Act 1954).
21
7 Clause 1 of Schedule 1
22
Insert:
23
entry contribution balance, in relation to an
*
entry contribution, is,
24
at a particular time, an amount equal to the difference between the
25
amount of the entry contribution and any amounts that have been,
26
or are permitted to be, deducted under a
*
formal agreement as at
27
that time.
28
8 Clause 1 of Schedule 1
29
Insert:
30
Schedule 2 Entry contributions
12 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
formal agreement means a legally binding agreement in writing,
1
entered into before 1 October 1997, between:
2
(a) a care recipient; and
3
(b)
an
*
operator.
4
9 Clause 1 of Schedule 1
5
Insert:
6
operator means an organisation that was approved for the payment
7
of financial assistance by way of recurrent subsidy under
8
section 10B of the Aged or Disabled Persons Care Act 1954
9
immediately before the commencement of this Act (other than
10
Division 1).
11
Aged Care (Consequential Provisions) Act 1997
12
10 Subsection 71(3)
13
Omit "on and after the commencement day", substitute "then".
14
11 Paragraph 71(3)(c)
15
Before "paragraph 56-1(a)", insert "on and after the commencement
16
day,".
17
12 Paragraph 71(3)(d)
18
Repeal the paragraph, substitute:
19
(d) subject to paragraph (e), on and after the commencement day,
20
Division 57 of the new Act does not apply in relation to the
21
entry contribution; and
22
(e) on and after the day that Schedule 2 to the Aged Care
23
Amendment (2005 Measures No. 1) Act 2005 commenced:
24
(i) the Prudential Standards made under section 57-4 of the
25
new Act; and
26
(ii) section 57-21B of the new Act;
27
apply in relation to the entry contribution.
28
Prudential requirements Schedule 3
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 13
1
Schedule 3--Prudential requirements
2
3
Aged Care Act 1997
4
1 Subdivision 57-B
5
Repeal the Subdivision, substitute:
6
Subdivision 57-B--Prudential requirements
7
57-3 Compliance with prudential requirements
8
An approved provider complies with the prudential requirements if
9
the approved provider complies with the Prudential Standards
10
made under section 57-4.
11
57-4 Prudential Standards
12
(1) The User Rights Principles may set out Prudential Standards.
13
Prudential Standards are standards providing for:
14
(a)
protection
of
*
accommodation bond balances of care
15
recipients; and
16
(b)
protection
of
*
entry contribution balances of care recipients;
17
and
18
(c)
sound
financial
management of approved providers; and
19
(d) provision of information about the financial management of
20
approved providers.
21
(2) The following are examples of matters with which the Prudential
22
Standards may deal:
23
(a) corporate governance requirements for approved providers;
24
(b) financial reporting requirements for approved providers;
25
(c) liquidity requirements for approved providers;
26
(d) capital requirements for approved providers;
27
(e) insurance requirements for approved providers;
28
(f) information retention and provision requirements for
29
approved providers.
30
2 Paragraphs 57-9(2)(b) and (c)
31
Schedule 3 Prudential requirements
14 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
Repeal the paragraphs.
1
3 Section 85-1 (table item 50)
2
Repeal the item.
3
Refunds of accommodation bond balances Schedule 4
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 15
1
Schedule 4--Refunds of accommodation
2
bond balances
3
4
Aged Care Act 1997
5
1 Before paragraph 57-21(3)(a)
6
Insert:
7
(aa) if the care recipient dies--within 14 days after the day on
8
which the approved provider is shown the probate of the will
9
of the care recipient or letters of administration of the estate
10
of the care recipient; or
11
2 Subparagraph 57-21(3)(a)(i)
12
Omit "7 days", substitute "14 days".
13
3 Subparagraph 57-21(3)(a)(ii)
14
Omit "7 days" (wherever occurring), substitute "14 days".
15
4 Subparagraph 57-21(3)(a)(iii)
16
Omit "7 days", substitute "14 days".
17
5 Paragraph 57-21(3)(b)
18
Omit "2 months", substitute "14 days".
19
6 Paragraph 57-21(3)(b)
20
Omit "paragraph (1)(a), (b)", substitute "paragraph (1)(b)".
21
7 After section 57-21
22
Insert:
23
57-21A Payment of interest on accommodation bond balance
24
(1) An approved provider that is required under this Subdivision to
25
refund an
*
accommodation bond balance must pay an amount
26
representing interest on the accommodation bond balance in the
27
circumstances (if any) specified in the User Rights Principles.
28
Schedule 4 Refunds of accommodation bond balances
16 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
(2) The amount is to be worked out in accordance with the User Rights
1
Principles.
2
(3) The amount must be paid to the person specified in the User Rights
3
Principles in the way specified in the User Rights Principles.
4
Requirement to give information Schedule 5
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 17
1
Schedule 5--Requirement to give information
2
3
Aged Care Act 1997
4
1 After section 9-3
5
Insert:
6
9-3A Obligation to give information relating to accommodation
7
bonds, entry contributions etc.
8
(1) The Secretary may, at any time, request an approved provider to
9
give to the Secretary specified information relating to any of the
10
following:
11
(a)
*
accommodation bonds charged by the approved provider;
12
(b) the amount of one or more
*
accommodation bond balances at
13
a particular time;
14
(c) the amount equal to the total of the accommodation bond
15
balances that the approved provider would have had to
16
refund at a specified earlier time if certain assumptions
17
specified in the request were made;
18
(d)
*
entry contributions given or loaned under a
*
formal
19
agreement binding the approved provider;
20
(e) the amount of one or more
*
entry contribution balances at a
21
particular time;
22
(f) the amount equal to the total of the entry contribution
23
balances that the approved provider would have had to
24
refund at a specified earlier time if certain assumptions
25
specified in the request were made.
26
The request must be in writing.
27
(2) The approved provider must comply with the request within 28
28
days after the request was made, or within such shorter period as is
29
specified in the request.
30
Note:
Approved providers have a responsibility under Part 4.3 to comply
31
with this obligation. Failure to comply with a responsibility can result
32
in a sanction being imposed under Part 4.4.
33
Schedule 5 Requirement to give information
18 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
(3) An approved provider that is a
*
corporation commits an offence if
1
it fails to comply with the request within the period referred to in
2
subsection (2).
3
Penalty: 30 penalty units.
4
(4) The request must contain a statement setting out the effect of
5
subsections (2) and (3).
6
2 At the end of paragraph 62-1(b)
7
Add:
8
or (iv) for the purpose of complying with an obligation under
9
section 9-3A or subsection 93-1(1) or a requirement
10
under the Prudential Standards made under
11
section 57-4;
12
3 Paragraph 63-1(1)(c)
13
Omit "and 9-3(2)", substitute ", 9-3(2) and 9-3A(2)".
14
Annual report Schedule 6
Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005 19
1
Schedule 6--Annual report
2
3
Aged Care Act 1997
4
1 Subsection 63-2(1)
5
Omit "30 September", substitute "30 November".
6
Schedule 7 Regulations
20 Aged Care Amendment (2005 Measures No. 1) Bill 2005 No. , 2005
1
Schedule 7--Regulations
2
3
1 Regulations
4
(1)
The Governor-General may make regulations prescribing matters:
5
(a) required or permitted by this Act to be prescribed; or
6
(b) necessary or convenient to be prescribed for carrying out or
7
giving effect to this Act.
8
(2)
In particular, regulations may be made prescribing matters of a
9
transitional nature (including prescribing any saving or application
10
provisions) relating to the amendments or repeals made by this Act.
11