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Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Bill 2009

Schedule 17 Amendments relating to aged care

Part 1 Main amendments

Aged Care Act 1997

1  Subsection 44-7(1B)

Omit “This”, substitute “Subject to subsection (1D), this”.

2  Subsection 44-7(1C)

Omit “This”, substitute “Subject to subsection (1E), this”.

3  After subsection 44-7(1C)

Insert:

          (1D)  If:

                     (a)  a determination covered by subsection (1B) is made in relation to a person; and

                     (b)  the time specified in the determination is on or after 20 September 2009;

subsection (1B) has effect as if the reference to paragraph (1)(c) were a reference to that paragraph modified by omitting “2.5” from subparagraph (i) and substituting “2.25”.

          (1E)  If:

                     (a)  a determination covered by subsection (1C) is made in relation to a person; and

                     (b)  the applicable time under subsection (2) is on or after 20 September 2009;

subsection (1C) has effect as if the reference to paragraph (1)(c) were a reference to that paragraph modified by omitting “2.5” from subparagraph (i) and substituting “2.25”.

4  Subsection 44-8(1B)

Omit “This”, substitute “Subject to subsection (1D), this”.

5  Subsection 44-8(1C)

Omit “This”, substitute “Subject to subsection (1E), this”.

6  After subsection 44-8(1C)

Insert:

          (1D)  If:

                     (a)  a determination covered by subsection (1B) is made in relation to a person; and

                     (b)  the time specified in the determination is on or after 20 September 2009;

subsection (1B) has effect as if the reference to paragraph (1)(c) were a reference to that paragraph modified by:

                     (c)  omitting “4” from subparagraph (i) and substituting “3.61”; and

                     (d)  omitting “2.5” from subparagraph (iii) and substituting “2.25”.

          (1E)  If:

                     (a)  a determination covered by subsection (1C) is made in relation to a person; and

                     (b)  the applicable time under subsection (2) is on or after 20 September 2009;

subsection (1C) has effect as if the reference to paragraph (1)(c) were a reference to that paragraph modified by:

                     (c)  omitting “4” from subparagraph (i) and substituting “3.61”; and

                     (d)  omitting “2.5” from subparagraph (iii) and substituting “2.25”.

7  Subsection 44-21(3) (income tested reduction calculator, step 4, paragraph (b))

Omit “150%”, substitute “135%”.

8  Paragraph 44-23(4)(a)

Omit “150%”, substitute “135%”.

9  Section 44-26

Repeal the section, substitute:

44-26   The care recipient’s total assessable income free area

General rule

             (1)  The total assessable income free area for a care recipient (other than a * protected resident or a * phased resident) is the sum of:

                     (a)  the amount worked out by applying point 1064-B1 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991 ; and

                     (b)  the amount worked out under point 1064-BA4 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991 ; and

                     (c)  the amount worked out by applying point 1064-E4 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991 .

Protected residents

             (2)  The total assessable income free area for a care recipient who is a * protected resident is the sum of:

                     (a)  the amount worked out by applying old point 1064-B1; and

                     (b)  the amounts referred to in paragraphs (1)(b) and (c).

Note:          Old point 1064-B1 is defined in subsection (6).

Phased residents

             (3)  The total assessable income free area for a care recipient who is a * phased resident is:

                     (a)  if the calculation is in respect of the period 20 September 2009 to 19 March 2010 (inclusive)—the sum of:

                              (i)  the amount worked out by applying old point 1064-B1; and

                             (ii)  the amounts referred to in paragraphs (1)(b) and (c); or

                     (b)  if the calculation is in respect of a period (the relevant period ) referred to in the table in subsection (5)—the sum of:

                              (i)  the amount worked out by applying old point 1064-B1; and

                             (ii)  the amount for the relevant period worked out in accordance with subsection (4) (rounded to the nearest cent); and

                            (iii)  the amounts referred to in paragraphs (1)(b) and (c).

             (4)  For the purposes of subparagraph (3)(b)(ii), the amount for the relevant period is the applicable percentage, for that period, of the amount that is the difference between:

                     (a)  the amount worked out by applying point 1064-B1 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991 , as that point has effect in that period; and

                     (b)  the amount worked out by applying old point 1064-B1.

             (5)  The applicable percentage for a relevant period is as set out in the following table:

 

Total assessable income free area—phased residents

Item

If the relevant period is ...

the applicable percentage is ...

1

20 March 2010 to 19 September 2010 (inclusive)

14.3

2

20 September 2010 to 19 March 2011 (inclusive)

28.6

3

20 March 2011 to 19 September 2011 (inclusive)

42.9

4

20 September 2011 to 19 March 2012 (inclusive)

57.2

5

20 March 2012 to 19 September 2012 (inclusive)

71.5

6

20 September 2012 to 19 March 2013 (inclusive)

85.8

 

Definition

             (6)  In this section:

old point 1064-B1 means point 1064-B1 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991 , as that point has effect on 19 September 2009.

10  At the end of section 44-27

Add:

                   ; (d)  the resident contribution top up supplement (see section 44-32).

11  Paragraph 44-28(3)(b)

Repeal the paragraph, substitute:

                     (b)  either:

                              (i)  if the time (the entry time ) of the care recipient’s entry was before 20 September 2009—that accommodation bond exceeded the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 10 times the * basic age pension amount; or

                             (ii)  if the time (the entry time ) of the care recipient’s entry was on or after 20 September 2009—that accommodation bond exceeded the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 9 times the * basic age pension amount;

12  At the end of Subdivision 44-F

Add:

44-32   The resident contribution top up supplement

             (1)  The resident contribution top up supplement for the care recipient in respect of the * payment period is the sum of all the resident contribution top up supplements for the days during the period on which:

                     (a)  the care recipient was provided with residential care through the residential care service in question; and

                     (b)  the care recipient was eligible for a resident contribution top up supplement.

             (2)  The care recipient is eligible for a resident contribution top up supplement on a particular day if the care recipient is a * phased resident on that day.

             (3)  The resident contribution top up supplement for the care recipient for a particular day is an amount equal to the difference between:

                     (a)  the amount that is the standard resident contribution for a care recipient for that day under subsection 58-3(1); and

                     (b)  the amount that is the standard resident contribution for a * phased resident for that day under subsection 58-4(4).

13  Subsection 57-12(3)

Repeal the subsection, substitute:

             (3)  A care recipient’s minimum permissible asset value is:

                     (a)  if the time (the entry time ) of the care recipient’s * entry to the residential care service or flexible care service is before 20 September 2009:

                              (i)  the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 2.5 times the * basic age pension amount at the entry time; or

                             (ii)  such higher amount as is specified in, or worked out in accordance with, the User Rights Principles; or

                     (b)  if the time (the entry time ) of the care recipient’s entry to the residential care service or flexible care service is on or after 20 September 2009:

                              (i)  the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 2.25 times the * basic age pension amount at the entry time; or

                             (ii)  such higher amount as is specified in, or worked out in accordance with, the User Rights Principles.

14  Subsection 57-12(5) (paragraph (a) of table item 1)

Omit “paragraphs (1)(b) and (3)(a)”, substitute “paragraph (1)(b) and subsection (3)”.

15  Section 58-2 (resident fee calculator, step 1)

Omit “58-4 or 58-4A”, substitute “58-3B, 58-3C or 58-4”.

16  Sections 58-3, 58-4 and 58-4A

Repeal the sections, substitute:

58-3   Standard resident contribution

General rule

             (1)  The standard resident contribution for a care recipient is the amount obtained by rounding down to the nearest cent an amount equal to 84% of the * basic age pension amount (worked out on a per day basis).

Exceptions

             (2)  However, the standard resident contribution for a care recipient who is:

                     (a)  a * protected resident; or

                     (b)  a care recipient to whom section 58-3C applies; or

                     (c)  a * phased resident;

is the amount referred to in subsection 58-3B(3), 58-3C(3) or 58-4(4) (as the case requires).

58-3A   Meaning of pre-September 2009 resident and post-September 2009 resident

Pre-September 2009 resident

             (1)  A person is a pre-September 2009 resident if:

                     (a)  the person is being provided with residential care through a residential care service; and

                     (b)  either:

                              (i)  the person * entered a residential care service before 20 September 2009; or

                             (ii)  the person was on * pre-entry leave from a residential care service immediately before 20 September 2009 and the person entered the residential care service on or after 20 September 2009 at the end of that pre-entry leave; and

                     (c)  the person has not had a break in residential care of more than 28 days between:

                              (i)  the last residential care service through which residential care was provided, or taken to be provided, to the person before 20 September 2009 and the next residential care service through which residential care is provided, or taken to be provided, to the person; and

                             (ii)  any residential care service through which residential care is provided, or taken to be provided, to the person on or after 20 September 2009 and the next residential care service through which residential care is provided, or taken to be provided, to the person.

Post-September 2009 resident

             (2)  A person is a post-September 2009 resident if:

                     (a)  the person is being provided with residential care through a residential care service; and

                     (b)  the person is not a * pre-September 2009 resident.

Break in residential care

             (3)  For the purposes of subsection (1), the period:

                     (a)  beginning on the day on which a person ceases to be provided with residential care through a residential care service (other than because the person is on * leave from the residential care service); and

                     (b)  ending on the day on which the person * enters, or begins * pre-entry leave, with the next residential care service through which residential care is provided, or taken to be provided, to the person;

is a break in residential care for the person.

Person not provided with residential care while on respite leave

             (4)  For the purposes of subsections (1), (2) and (3), a person is not provided, or taken to be provided, with residential care during any period during which the person is being provided with * respite care.

58-3B   Standard resident contribution—protected residents

Meaning of protected resident

             (1)  A care recipient is a protected resident if:

                     (a)  the care recipient is a * pre-September 2009 resident; and

                     (b)  the care recipient is not a * pre-2008 reform resident to whom section 58-3C applies; and

                     (c)  on 19 September 2009, the care recipient was not receiving an * income support payment.

             (2)  A care recipient is also a protected resident if:

                     (a)  the care recipient is a * pre-September 2009 resident; and

                     (b)  the care recipient is not a * pre-2008 reform resident to whom section 58-3C applies; and

                     (c)  on 19 September 2009, the care recipient was receiving an * income support payment; and

                     (d)  the amount determined under paragraph 44-24(2)(b), (3)(b) or (4)(b) (as the case requires), for the purposes of working out the care recipient’s * total assessable income in respect of 20 September 2009, is equal to or more than the sum of:

                              (i)  the amount worked out by applying point 1064-E4 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991 ; and

                             (ii)  $5,668.00.

Standard resident contribution

             (3)  The standard resident contribution for a care recipient who is a * protected resident is the greater of the following:

                     (a)  $33.41;

                     (b)  that amount as indexed on 20 September 2009, and from time to time after that date, in the same way that it would be indexed under the Social Security Act 1991 if it were an annual maximum basic rate under point 1064-B1 of that Act applying to a person who is not a member of a couple (within the meaning of that point).

58-3C   Standard resident contribution—certain pre-2008 reform residents

Care recipients to whom this section applies

             (1)  This section applies to a care recipient if:

                     (a)  the care recipient is a * pre-2008 reform resident; and

                     (b)  on 19 September 2009, the care recipient did not have a dependent child; and

                     (c)  on 19 September 2009, one or more of the following requirements is met:

                              (i)  the care recipient was not receiving an * income support payment;

                             (ii)  for * entry to the residential care service in question, the care recipient had paid an * accommodation bond that was more than the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 10 times the * basic age pension amount at the time of entry;

                            (iii)  the * daily income tested reduction in respect of the care recipient was an amount worked out under section 44-23; and

                     (d)  on 20 September 2009 and on each day since that day, the care recipient does not have a * dependent child; and

                     (e)  on 20 September 2009 and on each day since that day, one or more of the following requirements is met:

                              (i)  the care recipient is not receiving an * income support payment;

                             (ii)  if the care recipient * entered the residential care service in question before 20 September 2009—the care recipient paid an * accommodation bond for the entry that was more than the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 10 times the * basic age pension amount at the time of entry;

                            (iii)  if the care recipient * entered the residential care service in question on or after 20 September 2009—the care recipient paid an * accommodation bond that was more than the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 9 times the * basic age pension amount at the time of entry;

                            (iv)  the * daily income tested reduction in respect of the care recipient was an amount worked out under section 44-23.

             (2)  For the purposes of subparagraphs (1)(c)(ii), (1)(e)(ii) and (1)(e)(iii), if the care recipient has elected under subsection 57-17(1) to pay an * accommodation bond by periodic payments, the amount of the accommodation bond is taken to be what would have been payable by the care recipient in accordance with Subdivision 57-E had the care recipient paid it as a lump sum.

Standard resident contribution

             (3)  The standard resident contribution for a care recipient to whom this section applies is the greater of the following:

                     (a)  $41.61;

                     (b)  that amount as indexed on 20 September 2009, and from time to time after that date, in the same way that it would be indexed under the Social Security Act 1991 if it were an annual maximum basic rate under point 1064-B1 of that Act applying to a person who is not a member of a couple (within the meaning of that point).

58-4   Standard resident contribution—phased residents

Meaning of phased resident

             (1)  A care recipient is a phased resident on a particular day if:

                     (a)  the care recipient is a * post-September 2009 resident on that day; and

                     (b)  that day is in the period 20 September 2009 to 19 March 2013 (inclusive); and

                     (c)  on the day on which the care recipient * enters the residential care service in question, the care recipient is not receiving an * income support payment.

             (2)  A care recipient is also a phased resident on a particular day if:

                     (a)  the care recipient is a * post-September 2009 resident on that day; and

                     (b)  that day is in the period 20 September 2009 to 19 March 2013 (inclusive); and

                     (c)  on the day (the entry day ) on which the care recipient * enters the residential care service in question, the care recipient is receiving an * income support payment; and

                     (d)  the amount determined under paragraph 44-24(2)(b), (3)(b) or (4)(b) (as the case requires), for the purposes of working out the care recipient’s * total assessable income in respect of the entry day, is equal to or more than the amount (the threshold amount ) worked out under subsection (3).

             (3)  For the purposes of paragraph (2)(d), the threshold amount is the sum of:

                     (a)  the amount worked out by applying point 1064-E4 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991 ; and

                     (b)  the greater of the following:

                              (i)  $5,668.00;

                             (ii)  that amount as indexed on 20 March 2010, and from time to time after that date, in the same way that it would be indexed under the Social Security Act 1991 if it were an annual maximum basic rate under point 1064-B1 of that Act applying to a person who is not a member of a couple (within the meaning of that point).

Standard resident contribution

             (4)  The standard resident contribution in respect of a particular day, for a care recipient who is a * phased resident on that day, is:

                     (a)  if the day is in the period 20 September 2009 to 19 March 2010 (inclusive)—the greater of the following:

                              (i)  $33.41;

                             (ii)  that amount as indexed on 20 September 2009 in the same way that it would be indexed under the Social Security Act 1991 if it were an annual maximum basic rate under point 1064-B1 of that Act applying to a person who is not a member of a couple (within the meaning of that point); or

                     (b)  if the day is in a period (the relevant period ) referred to in the table in subsection (5)—the amount obtained by rounding down to the nearest cent an amount equal to the applicable percentage, for that period, of the * basic age pension amount (worked out on a per day basis).

             (5)  The applicable percentage for a relevant period is as set out in the following table:

 

Standard resident contribution—phased residents

Item

If the relevant period is ...

the applicable percentage is ...

1

20 March 2010 to 19 September 2010 (inclusive)

78

2

20 September 2010 to 19 March 2011 (inclusive)

79

3

20 March 2011 to 19 September 2011 (inclusive)

80

4

20 September 2011 to 19 March 2012 (inclusive)

81

5

20 March 2012 to 19 September 2012 (inclusive)

82

6

20 September 2012 to 19 March 2013 (inclusive)

83

 

17  Clause 1 of Schedule 1

Insert:

phased resident has the meaning given by section 58-4.

18  Clause 1 of Schedule 1

Insert:

post-September 2009 resident has the meaning given by section 58-3A.

19  Clause 1 of Schedule 1

Insert:

pre-September 2009 resident has the meaning given by section 58-3A.

20  Clause 1 of Schedule 1

Insert:

protected resident has the meaning given by section 58-3B.

21  Clause 1 of Schedule 1 (definition of standard pensioner contribution )

Repeal the definition.

22  Clause 1 of Schedule 1 (definition of standard resident contribution )

Omit “58-4 or 58-4A”, substitute “58-3B, 58-3C or 58-4”.



 

Part 2 Application provisions

23  Application of item 7

The amendment made by item 7 of this Schedule applies in relation to the calculation of the daily income tested reduction under subsection 44-21(3) of the Aged Care Act 1997 for a day that is on or after 20 September 2009.

24  Application of item 8

The amendment made by item 8 of this Schedule applies in relation to the calculation of the daily income tested reduction under subsection 44-23(4) of the Aged Care Act 1997 for a day that is on or after 20 September 2009.

25  Application of item 9

The amendment made by item 9 of this Schedule applies in relation to the calculation of the total assessable income free area for a care recipient under section 44-26 of the Aged Care Act 1997 for the purposes of working out the daily income tested reduction in respect of the care recipient for a day that is on or after 20 September 2009.

26  Application of items 10 and 12

The amendments made by items 10 and 12 of this Schedule apply in relation to the calculation of the residential care subsidy for a care recipient under section 44-2 of the Aged Care Act 1997 in respect of a day that is on or after 20 September 2009.

27  Application of items 15 and 16

The amendments made by items 15 and 16 of this Schedule apply in relation to the calculation of the standard resident contribution for a care recipient under Division 58 of the Aged Care Act 1997 in respect of a day that is on or after 20 September 2009.