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National Health Amendment Act 1994

Authoritative Version
  • - C2004A04699
  • No longer in force
Act No. 23 of 1994 as made
An Act to amend Part VD of the National Health Act 1953 to provide for the collection and recovery of nursing home charge imposed on certain nursing home proprietors, and for other purposes
Administered by: Health
Date of Assent 16 Feb 1994
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016

National Health Amendment
Act 1994

No. 23 of 1994

TABLE OF PROVISIONS

Section

1.       Short title etc.

2.       Commencement

3.       Object of Part

4.       Application and operation of Part

5.       Interpretation

6.       Vendor must give notice of sale of an approved nursing home

7.       Purchaser to give notice of prospective purchase of approved nursing home

8.       Investigation of accounts etc. of approved nursing homes

9.       Proprietor gives less than 90 days notice on settlement of contract of sale or settles in less than 90 days

10.     If no notice of sale given or vendor sells before notified date


TABLE OF PROVISIONS—continued

Section

11.     Insertion of new Division:

Division 2ANursing home charge

Subdivision 1Assessment

65GA.    Notice of fee-reducing benefit

65GB.    Liability to pay nursing home charge

65GC.    Amount of nursing home charge

65GD.    Notice of liability to pay nursing home charge

65GE.     Assessment

65GF.     Amendment of assessments

65GG.    Refund of overpaid amounts

65GH.    Amended assessment to be an assessment

65GI.      Objections

65GJ.     Validity of assessment

65GK.    Evidentiary effect of notice of assessment etc.

Subdivision 2Collection and recovery

65GL.     Secretary may extend time for payment

65GM.    Penalty for late payment

65GN.    Recovery of unpaid nursing home charge

65GO.    Recovery of nursing home charge from persons with joint liability

65GP.     Recovery of nursing home charge from trustee of deceased chargepayer

65GQ.    Recovery of nursing home charge from unadministered deceased estate

Subdivision 3—Advance payments

65GR.    Overview of Subdivision

65GS.     If paragraph 65C(1)(c) investigation done—direction to purchaser to pay amount to the Commonwealth 65GT. If paragraph 65F(1)(c) investigation has been ordered—vendor’s and purchaser’s liability to pay advance

65GU.    Treatment of money paid in advance under section 65GT

65GV.    Directions to be in writing

65GW.   Scale of fees may take account of unpaid nursing home charge

12.       If paragraphs 65C(1)(c) and (d) investigations done—direction to purchaser to pay amount to the Commonwealth

13.       If amount determined under paragraph 65F(1)(e)—direction to purchaser to pay amount to the Commonwealth

14.       Application for review by Tribunal

15.       Insertion of Division heading and section:

Division 4Miscellaneous

65SA.     Interest payable on repayments to vendors made under Division 3

16.       Insertion of new section:

65SB.     Interest payable on repayments to vendors made under Division 2A

17.       Further amendments to Part VD

SCHEDULE

FURTHER AMENDMENTS OF PART VD OF THE PRINCIPAL ACT


National Health Amendment
Act 1994

No. 23 of 1994

 

An Act to amend Part VD of the National Health Act 1953 to
provide for the collection and recovery of nursing home
charge imposed on certain nursing home proprietors, and
for other purposes

[Assented to 16 February 1994]

The Parliament of Australia enacts:

Short title etc.

1.(1) This Act may be cited as the National Health Amendment Act 1994.

(2)  In this Act “Principal Act” means the National Health Act 19531.


Commencement

2.(1) Subject to subsection (2), this Act commences on the day on which it receives the Royal Assent.

(2)  Sections 8, 9, 10 and 15 are taken to have commenced on 1 July 1993.

Object of Part

3. Section 63 of the Principal Act is amended by adding at the end the following word and paragraph:

“; and (e)   the collection and recovery of any nursing home charge payable in respect of the nursing home.”.

Application and operation of Part

4. Section 64 of the Principal Act is amended by omitting the table in paragraph 4(b) and substituting the following table:

 

OPERATION OF PART

Notice given

Requirements on sale—Division 2 sections that apply

Payment of certain charge money to the Commonwealth—Division 2A sections that apply

Payment of certain moneys to the Commonwealth—Division 3 sections that apply

If the Secretary receives 90 days or more notice of sale of nursing home and it is sold on or after the notified day for completion of sale

Section 65C Section 65D Section 65E

Subdivision 1 Section 65GS (direction to purchaser)

Section 65H (direction to purchaser) Subsections 65K(1), (5) and (6) (overpayment outstanding) Section 65Q Section 65R Section 65S

If the Secretary receives less than 90 days notice of sale of nursing home and it is sold on or after the notified day for completion of sale

Section 65F

Subdivision 1 Section 65GT (directions to purchaser and vendor) Section 65GU

Section 65J (direction to purchaser) Subsections 65(1), (3) and (4) Section 65N Section 65P

If the Secretary does not become aware of sale until afterwards or it is sold before the notified day for completion of sale

Section 65G

Subdivision 1 at section 65GA Section 65GB

Subsections 65K(1) and (2) Section 65M

 


Interpretation

5.  Section 65 of the Principal Act is amended by:

(a)  omitting from subsection (1) the definition of “fee-determining benefit”;

(b)  inserting in subsection (1) the following definitions:

‘assessment’ means an assessment under section 65GE;

‘chargepayer’ means a person who is, or has been, or may be liable to nursing home charge;

‘fee-increasing benefit’ means an amount of Commonwealth benefit that may, in accordance with the principles formulated under subsection 40AA(7), be taken into account to increase fees when determining a scale of fees in respect of a nursing home;

‘fee-reducing benefit’ means an amount of Commonwealth benefit that may, in accordance with the principles formulated under subsection 40AA(7), be taken into account to decrease fees when determining a scale of fees in respect of a nursing home;

‘late-payment penalty’ means penalty under section 65GM;

‘nursing home charge’ means charge imposed by the Nursing Home Charge (Imposition) Act 1994;

‘remainder of the purchase price’, in relation to the sale of an approved nursing home, means so much of the purchase price of the nursing home that has not, before the settlement of the contract of sale of the nursing home, been paid to:

(a)  the vendor of the nursing home in settlement of the contract; or

(b)  the Commonwealth in answer to a direction under section 65GS or 65GT;

‘vendor advance’, in relation to an amount determined by the Secretary under paragraph 65F(1)(g), in respect of an approved nursing home, means an amount paid by the vendor of the nursing home to the Commonwealth in answer to a direction given under section 65GT;”.

Vendor must give notice of sale of an approved nursing home

6.  Section 65A of the Principal Act is amended by inserting after paragraph (1)(d) the following paragraph:

“(e) the purchase price of the nursing home.”.

Purchaser to give notice of prospective purchase of approved nursing home

7.  Section 65B of the Principal Act is amended by adding at the end the following paragraph:

“(f) the purchase price of the nursing home.”.


Investigation of accounts etc. of approved nursing homes

8.  Section 65C of the Principal Act is amended by adding at the end the following subsection:

“(3)            The investigation under paragraph 65C(1)(d) must be completed within 90 days from the day on which the contract of sale of the nursing home was completed.”.

Proprietor gives less than 90 days notice on settlement of contract of sale or settles in less than 90 days

9.  Section 65F of the Principal Act is amended by inserting after subsection (2) the following subsection:

“(2A) An investigation must be completed within 90 days from the day on which the contract of sale of the nursing home was completed.”.

If no notice of sale given or vendor sells before notified date

10.  Section 65G of the Principal Act is amended by inserting after subsection (3) the following subsection:

“(3A) An investigation must be completed within 90 days from the day on which the Secretary becomes aware that the nursing home has been sold.”.

11.  After Division 2 of Part VD of the Principal Act, the following Division is inserted:

Division 2ANursing home charge

Subdivision 1Assessment

Notice of fee-reducing benefit

“65GA.(1) If:

(a)   an investigation under paragraph 65C(1)(c) or 65F(1)(c) or subsection 65G(3) in respect of an approved nursing home is completed after the commencement of this section; and

(b)  the investigation establishes that the vendor or an earlier proprietor of the nursing home has received a fee-reducing benefit in respect of the investigation period;

the Secretary must work out whether some or all of that fee-reducing benefit was received in respect of the period beginning on the day determined by the Secretary under paragraph 65C(1)(c) or 65F(1)(c) or subsection 65G(3) (as the case may be) and ending on 30 June 1993 (‘charge period’).

“(2)            If the vendor or an earlier proprietor of the nursing home has received fee-reducing benefit in respect of the charge period, the Secretary may give to the vendor a written notice setting out the amount of a fee-reducing benefit in respect of the charge period.


Liability to pay nursing home charge

“65GB.(1) If the Secretary gives a notice under section 65GA to the vendor of the nursing home, nursing home charge is payable in respect of the nursing home in accordance with this Division.

“(2)            The vendor of the nursing home is liable to pay the nursing home charge.

Amount of nursing home charge

“65GC. The amount of nursing home charge payable by the vendor of the approved nursing home equals the amount of fee-reducing benefit stated in the notice under section 65GA.

Notice of liability to pay nursing home charge

“65GD. As soon as possible after the Secretary has given notice under section 65GA in respect of an approved nursing home, the Secretary must give to the vendor a notice, in writing, stating:

(a)  that the vendor is liable to pay nursing home charge in respect of the nursing home; and

(b)  the amount of the charge payable; and

(c)  the day on which the charge is payable.

Assessment

“65GE.(1) The working out by the Secretary of the amount of fee-reducing benefit that has been received by the vendor or an earlier proprietor of an approved nursing home during the charge period is taken to be an assessment of the nursing home charge payable by the vendor in respect of the nursing home.

“(2)            The notice given under section 65GA in respect of the vendor’s liability to pay nursing home charge is taken to be a notice of assessment.

Amendment of assessments

“65GF.(1) The Secretary may amend an assessment on his or her initiative.

“(2)            The amendment must be made within 3 years from the day on which nursing home charge became payable.

“(3)            If:

(a)  a chargepayer applies to the Secretary for an amendment of the assessment; and

(b)  the application is made within 3 years from the day on which that nursing home charge became payable; and

(c)  within that period the chargepayer lodges all information the Secretary needs to decide the application;


the Secretary may amend the assessment when considering the application even if that period has elapsed.

“(4)            The Secretary may amend an assessment as he or she thinks fit whether or not any nursing home charge has been paid under it.

“(5)            If the Secretary amends an assessment, the Secretary must give to the chargepayer notice of the amended assessment.

“(6)            If the amended assessment increases the amount of nursing home charge payable, the notice must:

(a)   set out the extra amount payable; and

(b)  the day on which it is payable.

“(7)            Nothing in this section prevents the amendment of an assessment to give effect to:

(a)   the decision on any review or appeal; or

(b)  a reduction of any particular following an objection or pending any review or appeal.

Refund of overpaid amounts

“65GG.(1) If:

(a)  an assessment of a person’s liability is amended; and

(b)  because of that amendment the person’s liability to nursing home charge is reduced;

then:

(c)  the amount by which the nursing home charge is reduced is taken, in spite of section 65GC, never to have been payable; and

(d)  the Secretary must:

(i)    refund any overpaid amount; or

(ii)   apply any overpaid amount against the person’s liability (if any) in respect of an overpayment established by an investigation under paragraph 65C(1)(c) or (d) or paragraph 65F(1)(c) or subsection 65G(3) and then refund the remainder (if any).

“(2)            In this section, ‘overpaid amount’ includes any late-payment penalty.

Amended assessment to be an assessment

“65GH. An amended assessment is taken to be an assessment for all the purposes of this Part.

Objections

“65GI.(1) If:

(a)   a person has been assessed as liable to pay nursing home charge; and

(b)  the person is dissatisfied with the assessment;


he or she may, within 42 days after having been given notice of the assessment, lodge a written objection to the assessment stating fully the grounds on which the person relies.

“(2)            The Minister must consider the objection and may either reject it or allow all or part of it.

“(3)            The Minister must give the person written notice of the decision.

“(4)            If an assessment has been amended in any particular, an assessed person’s right to object to the amended assessment is limited to a right to object to alterations or additions in relation to, or matters relating to, the particular.

Validity of assessment

“65GJ. The validity of an assessment is not affected because any provision of this Act has not been complied with.

Evidentiary effect of notice of assessment etc.

“65GK.(1) The production of:

(a)   a notice of assessment; or

(b)  a document that is signed by the Secretary and appears to be a copy of a notice of assessment;

is conclusive evidence that the assessment was duly made and that the amounts and other particulars in the assessment are correct.

“(2)            The production of a certificate signed by the Secretary certifying that an amount was, at the date of the certificate, due and payable by the person is evidence of the matters stated in the certificate.

“(3)            This section does not apply in proceedings under the Administrative Appeals Tribunal Act 1975 or the Administrative Decisions (Judicial Review) Act 1977 on a review or appeal relating to the assessment.

Subdivision 2 Collection and recovery

Secretary may extend time for payment

“65GL.(1) The Secretary may, in a particular case, extend the time for payment of nursing home charge, or allow it to be paid by instalments on days fixed by the Secretary.

“(2)            In this section:

‘nursing home charge’ includes late-payment penalty.

Penalty for late payment

“65GM.(1) If an amount of nursing home charge remains unpaid after the day on which it was payable, the chargepayer is liable to pay a penalty at the rate of 16% per year on the unpaid amount.


“(2)            The penalty is calculated from the day on which the charge became payable.

“(3)            The fact that a judgment is entered or given in a court for the payment of nursing home charge, or of a composite amount that includes nursing home charge, does not of itself cause the charge to stop being unpaid for the purposes of subsection (1).

“(4)            If the judgment debt bears interest, the penalty payable under subsection (1) is reduced by the following amount:

“(5) The Secretary may remit some or all of the penalty if:

(a)   the Secretary is satisfied that the person did not contribute to the delay in payment and has taken reasonable steps to mitigate the causes of the delay; or

(b)  the Secretary is satisfied:

(i)  that the person contributed to the delay but has taken reasonable steps to mitigate the causes of the delay; and

(ii)   having regard to the nature of the reasons that caused the delay, that it would be fair and reasonable to remit some or all of the penalty; or

(c)   the Secretary is satisfied that there are special circumstances that make it reasonable to remit some or all of the penalty.

Recovery of unpaid nursing home charge

“65GN.(1) Unpaid nursing home charge may be recovered as a debt in any court of competent jurisdiction.

“(2)            In this section:

‘nursing home charge’ includes late payment penalty.

Recovery of nursing home charge from persons with joint liability

“65GO.(1) If there are 2 or more persons jointly liable to pay nursing home charge they are each liable for the whole of the charge.

“(2)            A person who has paid nursing home charge may recover the following contribution from any other person jointly liable to pay:


“(3)            The person entitled to the contribution:

(a)   may recover it as a debt in any court of competent jurisdiction; or

(b)  may retain or deduct it out of money in the person’s hands that belongs to, or is payable to, the contributor.

“(4)            In this section:

‘nursing home charge’ includes late-payment penalty.

Recovery of nursing home charge from trustee of deceased chargepayer

“65GP.(1) This section applies if:

(a)  an approved nursing home is on sale; and

(b)  the proprietor of the nursing home dies before the sale is completed; and

(c)  either:

(i)  the proprietor’s liability to pay nursing home charge has not been assessed at the day of his or her death; or

(ii)   nursing home charge payable in respect of the nursing home has not been paid at the day of his or her death.

“(2) Any notice of assessment that would have been given to the chargepayer under this Division if he or she had not died is to be given to the trustee of his or her estate.

“(3)            Any nursing home charge:

(a)   that was payable, and that had not been paid, by the chargepayer at the time of his or her death; or

(b)  that would have become payable by the chargepayer if he or she had not died;

is payable by the trustee of his or her estate.

“(4)            The Secretary has the same powers and remedies against the trustee of the estate for the recovery of any nursing home charge referred to in subsection (3) as the Secretary would have against the chargepayer if he or she had not died.

“(5)            A trustee who is dissatisfied with an assessment made under this section may object in the manner set out in section 65GI.

“(6)            In this section:

‘nursing home charge’ includes late-payment penalty.

Recovery of nursing home charge from unadministered deceased estate

“65GQ.(1) This section applies if administration of a chargepayer’s estate did not begin within 6 months after the chargepayer’s death.


“(2)            The Secretary may make an assessment of the nursing home charge that would have been payable by the deceased if he or she had not died.

“(3)            If the chargepayer resided in a State or Territory at the time of death, the Secretary must publish notice of the assessment twice in a daily newspaper circulating in the State or Territory.

“(4)            A person who claims an interest in the deceased chargepayer’s estate, and who is dissatisfied with the assessment, may object in the manner set out in section 65GI.

“(5)            If a person is granted probate of the chargepayer’s will, or letters of administration of the chargepayer’s estate, and the person is dissatisfied with the assessment, the person may object in the manner set out in section 65GI.

“(6)            In this section:

‘administration of a chargepayer’s estate’ is taken to begin when either probate of the chargepayer’s will is granted, or letters of administration of the chargepayer’s estate are granted;

‘nursing home charge’ includes late-payment penalty.

Subdivision 3Advance payments

Overview of Subdivision

“65GR.(1) This Subdivision provides for a collection mechanism to allow the Commonwealth to collect an amount from the vendor of an approved nursing home, the purchaser, or both, before the sale of the nursing home.

“(2)            The Commonwealth may collect the amount if:

(a)   it is likely that, upon assessment, a vendor will be found to be liable to pay nursing home charge in respect of the nursing home; or

(b)  the vendor has been assessed as liable to pay nursing home charge in respect of the nursing home.

If paragraph 65C(1)(c) investigation done—direction to purchaser to pay amount to the Commonwealth

“65GS.(1) If:

(a)   an investigation of the kind referred to in paragraph 65C(1)(c) has been carried out in respect of an approved nursing home; and

(b)  the vendor is liable to pay nursing home charge in respect of the nursing home;

the Secretary may, in writing, direct the purchaser of the nursing home to pay to the Commonwealth on or before the notified day for completion of sale of the nursing home:


(c)  so much of the purchase price as equals the nursing home charge; or

(d)  if the purchase price is less than the charge—the purchase price.

“(2)            The amount paid by the purchaser in answer to a direction is taken to be paid in settlement, or part settlement (as the case may be), of the amount due by the vendor to the Commonwealth in respect of the charge.

“(3)            Money paid to the Commonwealth by the purchaser is taken to have been paid by the purchaser to the vendor as consideration, or part of the consideration, under the contract for the sale of the nursing home.

If paragraph 65F(1)(c) investigation has been ordered—vendor’s and purchaser’s liability to pay advance

“65GT.(1) This section applies if the Secretary determines, under paragraph 65F(1)(g), an amount that is, in the Secretary’s opinion, a fair estimate of an amount of fee-reducing benefit that, in the Secretary’s opinion, the vendor, or an earlier proprietor of an approved nursing home, has received in respect of the investigation period.

“(2)            The Secretary must determine whether some or all of that estimated fee-reducing benefit was received in respect of the charge period.

“(3)            If the Secretary determines that a fee-reducing benefit was received in respect of the charge period, the Secretary may direct the purchaser to pay to the Commonwealth, on or before the notified day for completion of sale of the nursing home:

(a)   so much of the purchase price as equals the estimated amount of fee-reducing benefit in respect of the charge period; or

(b)  if the purchase price is less than the estimated amount of fee-reducing benefit in respect of the charge period—the purchase price.

“(4)            The Secretary may direct the vendor to pay to the Commonwealth, on or before the notified day for completion of sale of the nursing home:

(a)  if the Secretary has not given the purchaser a direction under subsection (3)—the estimated amount of fee-reducing benefit in respect of the charge period; or

(b)  if the purchaser has been so directed and the purchase price is less than the estimated amount of fee-reducing benefit in respect of the charge period—the difference between that estimated amount and the purchase price.

“(5)            The vendor must comply with the direction.

Penalty: 500 penalty units.

Note: For the definition and value of a penalty unit, see section 4AA of the Crimes Act 1914.

“(6)            The amount paid under subsection (3) or (4) is taken to be money held in trust (‘trust money’) by the Commonwealth for the benefit of the vendor until the investigation under paragraph 65F(1)(c) is completed.


“(7)            Money paid to the Commonwealth by the purchaser is taken to have been paid by the purchaser to the vendor as consideration, or part of the consideration, under the contract for the sale of the nursing home.

“(8)            In this section:

‘investigation period’, in respect of an approved nursing home, means the period applying under paragraph 65F(1)(c).

Treatment of money paid in advance under section 65GT

“65GU.(1) When the investigation under paragraph 65F(1)(c) in respect of an approved nursing home is completed, the trust money is to be treated as set out under subsections (2), (3) and (4).

“(2)            If the investigation establishes that the vendor is not liable to pay nursing home charge, the money is held until the vendor’s liability to pay an overpayment in respect of the nursing home is determined.

“(3)            If the vendor has such a liability the trust money is to be applied by the Secretary against the liability and the balance (if any) is to be repaid to the vendor.

“(4)            If the investigation establishes that the vendor is liable to pay nursing home charge in respect of the nursing home, then:

(a)   if the trust money is equal to or less than the nursing home charge— the trust money is taken to have been paid to the Commonwealth in settlement or part settlement of the amount due in respect of the charge; or

(b)  if the trust money is more than the charge:

(i)  so much of the trust money as equals the charge is taken to have been paid to the Commonwealth in settlement of the amount due to the Commonwealth by the vendor in respect of the charge; and

(ii)   the remainder (if any) of the trust money is to be applied by the Secretary against any liability of the vendor to the Commonwealth in respect of an overpayment established by an investigation under paragraph 65F(1)(c) or (d); and

(iii)    the balance of the trust money (if any) is paid to the vendor.

Directions to be in writing

“65GV.(1) A direction to a purchaser of an approved nursing home under section 65GS or 65GT must be in writing and set out:

(a)   details of the amount of the purchase price the purchaser is directed to pay; and

(b)  the day on which the amount is payable.

“(2)            A direction to a vendor of an approved nursing home under section 65GT must be in writing and set out:


(a)  if a purchaser of the nursing home has been directed to pay some or all of the purchase price of the nursing home to the Commonwealth—details of the amounts the purchaser was directed to pay; and

(b)  the day on which the vendor advance is payable.

“(3)            A direction must not specify a day later than the notified day for completion of the sale of the nursing home as the day on which the amount is payable.

Scale of fees may take account of unpaid nursing home charge

“65GW.(1) The principles formulated under subsection 40AA(7) may provide that in determining a scale of fees, or notional scale of fees, in respect of an approved nursing home, the Secretary may:

(a)  take into account whether any nursing home charge remains unpaid (‘outstanding charge’) in respect of the nursing home; and

(b)  reduce the fees that the proprietor may charge accordingly.

“(2)            If, after the scale of fees or notional scale of fees is determined, the outstanding charge is paid to the Commonwealth, the Secretary must determine a new scale of fees in respect of the nursing home.

“(3)            The new scale of fees must reflect that there is no outstanding charge in respect of the nursing home.

Note:    In determining a notional scale of fees in respect of the nursing home, the Secretary will determine whether or not the proprietor, during the accounting period, received the correct amount of general care benefit in respect of the provision of nursing home care in the nursing home. The fact that the proprietor’s fees were reduced to take account of outstanding nursing home charge will be taken into account in setting the notional fees. If the proprietor, given his or her actual expenditure on providing nursing home care, should have received a higher level of general care benefit in respect of the nursing home, the notional fees will be adjusted to reflect that the proprietor was underpaid general care benefit.

If paragraphs 65C(1)(c) and (d) investigations done—direction to purchaser to pay amount to the Commonwealth

12.  Section 65H of the Principal Act is amended by omitting subsection (1) and substituting the following subsections:

“(1)            If:

(a)   investigations of the kind referred to in paragraphs 65C(1)(c) and (d) have been ordered in respect of an approved nursing home; and

(b)  the Secretary has not directed the purchaser of the nursing home to pay an amount under section 65GS in respect of the nursing home;

the Secretary may, in writing, direct the purchaser of the nursing home to pay to the Commonwealth on or before the notified day for completion of sale of the nursing home:

(c)   so much of the purchase price as equals the sum of:

(i)  the amount of the overpayment established by the first investigation; and


(ii)   the amount determined under paragraph 65D(1)(b) in respect of the nursing home; or

(d)  if the purchase price is less than the sum of those amounts—the purchase price.

“(1A) If:

(a)  investigations of the kind referred to in paragraphs 65C(1)(c) and (d) have been ordered in respect of an approved nursing home; and

(b)  the Secretary has directed the purchaser under section 65GS to pay some or all of the purchase price in respect of the nursing home to the Commonwealth;

the Secretary may, in writing, direct the purchaser of the nursing home to pay to the Commonwealth on or before the notified day for completion of sale of the nursing home:

(c)  so much of the remainder of the purchase price as equals the sum of:

(i)    the amount of the overpayment established by the first investigation; and

(ii)  the amount determined under paragraph 65D(1)(b) in respect of the nursing home; or

(d)  if the remainder of the purchase price is less than the sum of the amounts—the remainder of the purchase price.”.

If amount determined under paragraph 65F(1)(e)—direction to purchaser to pay amount to the Commonwealth

13.  Section 65J of the Principal Act is amended by omitting subsection (1) and substituting the following subsections:

“(1)            If, in respect of the sale of an approved nursing home:

(a)  the Secretary has determined an amount under paragraph 65F(1)(e); and

(b)  the Secretary has not directed the purchaser of the nursing home to pay an amount under section 65GT;

the Secretary may, in writing, direct the purchaser of the nursing home to pay to the Commonwealth on or before the notified day for completion of sale of the nursing home:

(c)   if the purchase price is equal to or less than the amount determined—the purchase price; or

(d)  if the purchase price is more than the amount determined — so much of the purchase price as equals the amount so determined.

“(1A) If, in respect of the sale of an approved nursing home:

(a)  the Secretary has determined an amount under paragraph 65F(1)(e); and


(b)  the Secretary has directed the purchaser under section 65GT to pay some or all of the purchase price of the nursing home to the Commonwealth;

the Secretary may, in writing, direct the purchaser of the nursing home to pay to the Commonwealth on or before the notified day for completion of sale of the nursing home:

(c)  if the remainder of the purchase price is equal to or less than the amount determined—the remainder of the purchase price; or

(d)  if the purchase price is more than the amount determined—so much of the purchase price as equals the amount so determined.”.

Application for review by Tribunal

14.  Section 105AB of the Principal Act is amended by inserting in subsection (1AA) “or section 65GI” after “46D(8)”.

15.  After section 65S of the Principal Act the following division heading and section are inserted:

Division 4Miscellaneous

Interest payable on repayments to vendors made under Division 3

“65SA.(1) If the Commonwealth is liable to repay an amount to the vendor under section 65H, 65J, 65M, 65N, 65P, 65Q or 65S, the Commonwealth is also liable to pay interest on that amount at the rate determined by the regulations.

“(2)            If an amount of purchaser payment is repayable under section 65H or 65J, the interest is payable in respect of the period beginning on the day on which the contract for sale of the nursing home was completed and ending on the day on which the repayment is made.

“(3)            If an amount of vendor payment is repayable under section 65M, the interest is payable in respect of the period beginning on the day on which the vendor paid the overpayment outstanding to the Commonwealth under subsection 65K(2) and ending on the day on which the repayment is made.

“(4)            If an amount of vendor payment is repayable under section 65N, 65P, 65Q or 65S, the interest is payable in respect of the period beginning on the day on which the vendor paid the money to the Commonwealth in answer to a direction under that section and ending on the day on which the repayment is made.

16.  After section 65SA of the Principal Act the following section is inserted:


Interest payable on repayments to vendors made under Division 2A

“65SB.(1) If the Commonwealth is liable to repay an amount to the vendor under section 65GU, the Commonwealth is also liable to pay interest on that amount, at the rate determined by the regulations, in respect of the periods set out below.

“(2)            If only the purchaser has made a payment in answer to a direction under section 65GT, the interest is payable in respect of the period beginning on the day on which the contract for sale of the nursing home was completed and ending on the day on which the repayment is made.

“(3)            if:

(a)   both a payment by the purchaser and a vendor advance has been made in answer to directions under section 65GT; or

(b)  only a vendor advance has been made under such a direction;

the interest is payable in respect of the period beginning on the day on which the vendor paid the money to the Commonwealth in answer to a direction under section 65GT and ending on the day on which the repayment is made.”.

Further amendments of Part VD

17.  Part VD of the Principal Act is further amended as set out in the Schedule.

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SCHEDULE                                           Section 17

FURTHER AMENDMENTS OF PART VD OF THE PRINCIPAL
ACT

Paragraph 65C(2)(c):

Omit “has received, or missed out on receiving, a fee-determining benefit in respect of the investigation period”, substitute:

“has, in respect of the investigation period:

(i)  received a fee-reducing benefit; or

(ii)   missed out on receiving fee-increasing benefit;”.

Paragraph 65C(2)(d):

Omit “has received, or missed out on receiving (as the case may be), a fee-determining benefit—”, substitute:

“has:

(i)  received a fee-reducing benefit; or

(ii)   missed out on receiving fee-increasing benefit;”.

Paragraph 65E(c) and (d):

Omit the paragraphs, substitute the following paragraphs:

“(c)   if the vendor or an earlier proprietor of that nursing home has received a fee-reducing benefit—the amount of that benefit; and

(ca)  if the vendor or an earlier proprietor of that nursing home has missed out on receiving fee-increasing benefit—the amount of that benefit; and

(d)  the means by which the amount of fee-reducing or fee-increasing benefit was calculated; and”.

Paragraph 65F(1)(f):

Omit “received, or missed out on receiving a fee-determining benefit in respect of the investigation period;”, substitute:

“, in respect of the investigation period:

(i)  received a fee-reducing benefit; or

(ii)   missed out on receiving fee-increasing benefit;”.

Paragraph 65F(1)(g):

Omit “has received, or missed out on receiving (as the case may be), a fee-determining benefit—”, substitute:

“has:

(i)  received a fee-reducing benefit; or

(ii)   missed out on receiving fee-increasing benefit;”.


SCHEDULE—continued

Paragraph 65F(2)(c):

Omit “received, or missed out on receiving a fee-determining benefit in respect of the investigation period;”, substitute:

“, in respect of the investigation period:

(i)  received a fee-reducing benefit; or

(ii)   missed out on receiving fee-increasing benefit;”.

Paragraph 65F(2)(d):

Omit “received, or missed out on receiving (as the case may be), a fee-determining benefit —”, substitute:

“: (i) received a fee-reducing benefit; or

(ii)  missed out on receiving fee-increasing benefit;”.

Paragraph 65G(3)(b):

Omit “received, or missed out on receiving a fee-determining benefit in respect of the investigation period.”, substitute:

“, in respect of the investigation period:

(i)  received a fee-reducing benefit; or

(ii)   missed out on receiving fee-increasing benefit.”.

Paragraph 65G(4)(b):

Omit “received, or missed out on receiving, a fee-determining benefit in respect of the investigation period and, if the Secretary determines that there is such an amount of fee-determining benefit, determine the amount of it.”, substitute:

“, in respect of the investigation period:

(i)  received a fee-reducing benefit; or

(ii)  missed out on receiving fee-increasing benefit;

and if the Secretary determines that there is such an amount of benefit, determine the amount of it.”.

Subsection 65N(4)

Add at the end the following Note:

“Note: Subsection 65GU(4) directs the Secretary to apply money paid in relation to a vendor’s liability to pay nursing home charge:

(a) in the first instance—against the charge; and

(b) then—against any liability of the vendor in respect of an overpayment.”.

Subparagraph 65U(2)(b)(ii):

(a)  Omit “received, or missed out on receiving (as the case may be), a fee-determining benefit;”, substitute “received a fee-reducing benefit or missed out on receiving fee-increasing benefit (as the case may be);”.


SCHEDULE—continued

(b)   Omit “fee-determining benefit” (last occurring), substitute “fee-reducing benefit or fee-increasing benefit”.

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NOTE

1.    No. 95, 1953, as amended. For previous amendments, see No. 68, 1955; Nos. 55 and 95, 1956; No. 92, 1957; No. 68, 1958; No. 72, 1959; No. 16, 1961; No. 82, 1962; No. 77, 1963; No. 37, 1964; Nos. 100 and 146, 1965; No. 44, 1966; Nos. 14 and 100, 1967; No. 100, 1968; No. 102, 1969; No. 41, 1970; No. 85, 1971; No. 114, 1972; Nos. 49 and 202, 1973; No. 37, 1974; Nos. 1, 13 and 93, 1975; Nos. 1, 60, 91, 99, 108, 157 and 177, 1976; Nos. 98 and 100, 1977; Nos. 36, 88, 132 and 189, 1978; Nos. 54, 91 and 122, 1979; Nos. 117 and 131, 1980; Nos. 40, 74, 92, 118, 163 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 35, 54 and 139, 1983; Nos. 46, 63, 72, 120, 135 and 165, 1984; Nos. 24, 53, 65, 70, 95, 127 and 167, 1985; Nos. 28, 75, 94 and 115, 1986; Nos. 22, 44, 72, 118, 131 and 132, 1987; Nos. 79, 87, 99 and 155, 1988; No. 95, 1989; Nos. 3, 84, 106 and 141, 1990; Nos. 6, 68, 70, 73, 83, 84, 115, 116, 119, 122, 141, 169, 175, 208 and 211, 1991; Nos. 70, 81, 88, 136, 192, 200 and 204, 1992; and No. 106, 1993.

[Minister’s second reading speech made in

House of Representatives on 28 September 1993

Senate on 26 October 1993]