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Aged Care Amendment (Extra Service) Bill 2005

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2004-2005

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRAIA

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

 

 

 

 

 

 

AGED CARE AMENDMENT (EXTRA SERVICE) BILL 2005

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of the Minister for Ageing, the Hon Julie Bishop, MP)

 

 



 

AGED CARE AMENDMENT (EXTRA SERVICE) BILL 2005

 

OUTLINE

 

This Bill gives legislative effect to a measure announced in the 2005-06 Budget. 

 

An aged care service with extra service status allows residents to choose, and pay for, a higher than average level of hotel-type services, including accommodation, the range and quality of food and the provision of non-care services such as recreational and personal interest activities.

 

This measure will provide more certainty for extra service providers, particularly in relation to their capital-raising requirements.  The Bill will amend Part 2.5 of the Aged Care Act 1997 by removing the current requirement that extra service providers need to reapply for extra service status every five years. 

 

Extra service status is granted by the Secretary of the Department of Health and Ageing under Part 2.5 of the Aged Care Act 1997 (the Act).

 

Subsection 33-2(1) of the Act provides that extra service status for a residential care service, or a distinct part of a residential care service, expires on its expiry date, unless renewed under Division 34 of the Act.  Subsection 33-2(2) provides that, subject to subsection (3), the expiry date for extra service status is 5 years or such other period as is specified in the Extra Service Principles.  The period is measured from the latest day on which the extra service status took effect or was renewed.  Subsection 33-2(3) allows the Secretary to extend the period of grant of extra service status for up to 12 months.

 

Section 31-2 provides for extra service status to continue after the expiry date in limited circumstances.  Essentially, it protects the rights of care recipients who have formerly received extra services.  Section 31-2 ensures that these care recipients continue to receive the same level of hotel-type services (under the previous arrangements with the provider) until they leave the aged care home.  However, providers cannot admit new care recipients on an extra service basis.

 

This Bill will remove the expiry date for extra service.  It will also remove all provisions relating to the renewal of extra service under Division 34 and the extension of the period of extra service under subsection 33-2(3).  It will also remove the ability to “continue” extra service under section 31-2 but will provide for extra service to “continue” for residents already receiving the benefit of section 31-2.  The Bill will also make consequential amendments to other provisions within the Aged Care Act 1997 .

 

The Extra Service Principles made by the Minister under subsection 96(1) of the Aged Care Act 1997 will also be amended as a consequence of this Bill.

 

 

 

FINANCIAL IMPACT

 

There is no financial impact.



 

AGED CARE AMENDMENT (EXTRA SERVICE) BILL 2005

 

NOTES ON CLAUSES

 

Clause 1 - Short title

 

This clause provides that the short title of the Act may be cited as the Aged Care Amendment (Extra Service) Act 2005 .

 

Clause 2 - Commencement

 

This clause provides that the Act will commence, or will be taken to have commenced, on 1 July 2005.

 

Clause 3 - Schedule

 

This clause provides that the Act (the Aged Care Act 1997) that is specified in the Schedule to the Act will be amended as set out in the applicable items in the Schedule.  Any other item has effect according to its terms.

 

SCHEDULE 1 - EXTRA SERVICE

 

Item 1

 

Item 1 provides for a consequential amendment to paragraph 31-1(a) to remove the reference to Division 34.  Division 34, which provides for how extra service status is to be renewed, is to be omitted under Item 5.

 

Item 2

 

Item 2 provides for the repeal of section 31-2.  Section 31-2 provides for the continuation of extra service status in limited circumstances after it has expired.  As Item 4 removes the expiry date for extra service, there is no need to provide for its continuation.

 

Item 3

 

Item 3 provides for a consequential amendment to repeal paragraph 33-1(a) to remove the reference to extra service expiring under section 33-2.  Section 33-2 is to be repealed under Item 4.

 

Item 4

 

Item 4 provides for the repeal of section 33-2.  Section 33-2 provides for extra service to expire on the expiry date.  Its removal means that extra service, once granted, will continue unless it lapses under section 33-3, is revoked or suspended under section 33-4 or Part 4.4, or if the residential care service fails to meet its accreditation or certification requirements or if an event specified in the Extra Service Principles occurs.

 



Item 5

 

This Item provides for the repeal of Division 34.  Division 34 provides for the renewal of extra service status.  As Item 4 removes the expiry date for extra service, there is no need to provide for its renewal. 

 

Item 6

 

Item 6 provides for a consequential amendment to paragraph 35-1(2)(c) to remove the reference to Division 34.  Division 34, which provides for how extra service status is to be renewed, is to be omitted under Item 5.

 

Item 7

 

Item 7 provides for a consequential amendment to the note under subsection 36-3(1) to remove the reference to subsection 34-1(3).  Division 34 is to be repealed under Item 5. 

 

Item 8

 

Item 8 provides for paragraph 63-1(1)(i) to be repealed and a replacement paragraph substituted.  As Item 5 provides for the repeal of Division 34, the replacement paragraph does not refer to the renewal of extra service status nor to section 34-5. 

 

Item 9

 

Item 9 provides for a consequential amendment to repeal Item 32 of the table in Section 85-1.  Item 32 of the table provides for the decision “To refuse to make a determination to extend extra service status” under subsection 31-2(1) to be a reviewable decision.  As Item 2 of this Schedule provides for the repeal of section 31-2, there is no need to provide for the decision to be reviewed.

 

Item 10

 

This Item amends the definition of “expiry date” in the Dictionary in Schedule 1 of the Aged Care Act 1997 .  It removes the references to the expiry date under section 33-2 as Item 4 provides for section 33-2 to be repealed.

 

Item 11

 

This Item provides transitional arrangements to ensure the rights of certain aged care residents are protected.  Extra service could be continued under section 31-2 past the expiry date in limited circumstances for these residents.  This Item provides that if extra service had been continued under section 31-2, it will not cease due to the repeal of section 31-2 under Item 2.