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Aged Care Amendment (2005 Measures No. 1) Bill 2006

Schedule 2 Entry contributions

   

Aged Care Act 1997

1  After paragraph 56-1(a)

Insert:

                    (aa)  to comply with the requirements of:

                              (i)  the Prudential Standards made under section 57-4; and

                             (ii)  section 57-21B;

                            in relation to any * entry contribution given or loaned under a * formal agreement binding the approved provider and the care recipient;

2  Before paragraph 56-3(b)

Insert:

                   (ab)  to comply with the requirements of:

                              (i)  the Prudential Standards made under section 57-4; and

                             (ii)  section 57-21B;

                            in relation to any * entry contribution given or loaned under a * formal agreement binding the approved provider and the care recipient;

3  Division 57 (heading)

Repeal the heading, substitute:

Division 57 What are the responsibilities relating to accommodation bonds and entry contributions?

4  At the end of section 57-1

Add:

If an approved provider has been given or loaned an * entry contribution, several rules must be followed. The rules set out in this Division relate particularly to prudential arrangements and payment of interest on * entry contribution balances. Other rules are set out in section 71 of the Aged Care (Consequential Provisions) Act 1997 .

5  Before section 57-22

Insert:

57-21B   Payment of interest on entry contribution balance

             (1)  An approved provider that is required under a * formal agreement to refund an * entry contribution balance must pay an amount representing interest on the entry contribution balance in the circumstances (if any) specified in the User Rights Principles.

             (2)  The amount is to be worked out in accordance with the User Rights Principles.

             (3)  The amount must be paid to the person specified in the User Rights Principles in the way specified in the User Rights Principles.

6  Clause 1 of Schedule 1

Insert:

entry contribution , relating to a care recipient, means any payment, made before 1 October 1997, of money or other valuable consideration required by an * operator to be given or loaned in return for, or in contemplation of, * entry of the care recipient to a hostel (within the meaning of the Aged or Disabled Persons Care Act 1954 ).

7  Clause 1 of Schedule 1

Insert:

entry contribution balance , in relation to an * entry contribution, is, at a particular time, an amount equal to the difference between the amount of the entry contribution and any amounts that have been, or are permitted to be, deducted under a * formal agreement as at that time.

8  Clause 1 of Schedule 1

Insert:

formal agreement means a legally binding agreement in writing, entered into before 1 October 1997, between:

                     (a)  a care recipient; and

                     (b)  an * operator.

9  Clause 1 of Schedule 1

Insert:

operator means an organisation that was approved for the payment of financial assistance by way of recurrent subsidy under section 10B of the Aged or Disabled Persons Care Act 1954 immediately before the commencement of this Act (other than Division 1).

Aged Care (Consequential Provisions) Act 1997

10  Subsection 71(3)

Omit “on and after the commencement day”, substitute “then”.

11  Paragraph 71(3)(c)

Before “paragraph 56-1(a)”, insert “on and after the commencement day,”.

12  Paragraph 71(3)(d)

Repeal the paragraph, substitute:

                     (d)  subject to paragraph (e), on and after the commencement day, Division 57 of the new Act does not apply in relation to the entry contribution; and

                     (e)  on and after the day that Schedule 2 to the Aged Care Amendment (2005 Measures No. 1) Act 2005 commenced:

                              (i)  the Prudential Standards made under section 57-4 of the new Act; and

                             (ii)  section 57-21B of the new Act;

                            apply in relation to the entry contribution.