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

Schedule 3 Prudential requirements


Aged Care Act 1997

1  Subdivision 57-B

Repeal the Subdivision, substitute:

Subdivision 57-B Prudential requirements

57-3   Compliance with prudential requirements

                   An approved provider complies with the prudential requirements if the approved provider complies with the Prudential Standards made under section 57-4.

57-4   Prudential Standards

             (1)  The User Rights Principles may set out Prudential Standards. Prudential Standards are standards providing for:

                     (a)  protection of * accommodation bond balances of care recipients; and

                     (b)  protection of * entry contribution balances of care recipients; and

                     (c)  sound financial management of approved providers; and

                     (d)  provision of information about the financial management of approved providers.

             (2)  The following are examples of matters with which the Prudential Standards may deal:

                     (a)  corporate governance requirements for approved providers;

                     (b)  financial reporting requirements for approved providers;

                     (c)  liquidity requirements for approved providers;

                     (d)  capital requirements for approved providers;

                     (e)  insurance requirements for approved providers;

                      (f)  information retention and provision requirements for approved providers.

2  Paragraphs 57-9(2)(b) and (c)

Repeal the paragraphs.

3  Section 85-1 (table item 50)

Repeal the item.