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A Bill for an Act to amend the Aged Care Act 1997, and for related purposes
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Registered 26 Oct 2021
Introduced HR 25 Oct 2021
Table of contents.

2019‑2020‑2021

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

Aged Care Amendment (Making Aged Care Fees Fairer) Bill 2021

 

No.      , 2021

 

(Ms Sharkie)

 

 

 

A Bill for an Act to amend the Aged Care Act 1997, and for related purposes

  

  


Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedules............................................................................................ 2

Schedule 1—Amendments                                                                                                3

Aged Care Act 1997                                                                                                    3

 

 


A Bill for an Act to amend the Aged Care Act 1997, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act is the Aged Care Amendment (Making Aged Care Fees Fairer) Act 2021.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

A single day to be fixed by Proclamation.

However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

                   Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Amendments

  

Aged Care Act 1997

1  At the end of subsection 52D‑1(2)

Add:

                   ; (e)  no more than the following percentage of the home care fee in respect of any period may be *administration or management fees:

                              (i)  if the home care fee is for a level one aged care package or a level two aged care package—25%;

                             (ii)  if the home care fee is for a level three aged care package or a level four aged care package—20%.

2  At the end of section 52D‑1

             (3)  The policies and practices that an approved provider uses in setting home care fees that are charged to a care recipient:

                     (a)  must provide for *administration or management fees to be set separately from the rest of the home care fees; and

                     (b)  must result in the home care fees being set in accordance with the following requirements:

                              (i)  administration or management fees must be set such that the whole amount of the administration or management fees are directly attributable to the cost of administering or managing the provision of home care to the care recipient;

                             (ii)  the other components of the home care fees must be set such that the amounts of the other components are not to any extent directly attributable to the cost of administering or managing the provision of home care to the care recipient, and do not offset any of that cost;

                            (iii)  any other requirements specified by the Fees and Payments Principles.

             (4)  An approved provider who charges home care fees to a care recipient:

                     (a)  must identify to the care recipient:

                              (i)  how much of the fees are for administration or management; and

                             (ii)  how much of the fees are not for administration or management; and

                     (b)  on request by the Secretary or the care recipient, must show how the home care fees comply with the requirements of paragraph (2)(e) and subparagraphs (3)(b)(i), (ii) and (iii).

             (5)  In this section:

cost of administering or managing the provision of home care includes the cost of the following:

                     (a)  administration staff;

                     (b)  insurance;

                     (c)  workers’ compensation;

                     (d)  case management or care coordination;

                     (e)  budget preparation.

level four aged care package has the meaning given by the Fees and Payments Principles.

level one aged care package: home care that is not part of a level two aged care package, a level three aged care package or a level four aged care package is part of a level one aged care package.

level three aged care package has the meaning given by the Fees and Payments Principles.

level two aged care package has the meaning given by the Fees and Payments Principles.

3  Paragraph 56‑2(a)

After “*entry to”, insert “, or *exit from,”.

4  After paragraph 56‑2(k)

Insert:

                   (ka)  in the case of a prospective care recipient—give the prospective care recipient a schedule setting out the *home care fees charged by other approved providers for, or in connection with, home care of the kind to be provided to the care recipient, in accordance with the following requirements:

                              (i)  the home care fees set out in the schedule must be the fees charged for providing home care in the same area as the home care that is to be provided to the care recipient;

                             (ii)  if 5 or fewer other approved providers provide home care of that kind in that area—the schedule must set out the fees of all of those other approved providers (if any);

                            (iii)  if more than 5 other approved providers provide home care of that kind in that area—the schedule must set out the fees of at least 5 of those other approved providers;

5  After subsection 61‑1(1)

Insert:

          (1A)  Without limiting paragraph (1)(c), the *home care agreement must specify:

                     (a)  whether the *home care fees that the care recipient will be liable to pay the approved provider include *administration or management fees; and

                     (b)  if the home care fees include administration or management fees—the policies and practices that the approved provider will use in setting the administration or management fees.

Note:          See paragraph 52D‑1(2)(e) and subsections 52D‑1(3) and (4).

6  Clause 1 of Schedule 1

Insert:

administration or management fees means the component of *home care fees charged by an approved provider that are identified as administration or management fees in accordance with subparagraph 52D‑1(4)(a)(i).

exit, in relation to a person and an *aged care service, means the end of the provision of care to the person through that aged care service.

home care fees has the meaning given by subsection 52D‑1(1).

7  Application of amendments

(1)       The amendments made by items 1 and 2 apply in relation to home care fees in respect of a period commencing on or after the commencement of this item.

(2)       The amendment made by item 3:

                     (a)  subject to paragraph (b), applies in relation to an aged care recipient’s exit from an aged care service if the aged care recipient enters the service on or after the commencement of this item; and

                     (b)  does not apply to a charge under a home care agreement entered into before that commencement.

(3)       Paragraph (2)(b) ceases to apply to a home care agreement immediately before the first time (if any) the agreement is varied after the commencement of this item.

(4)       The amendment made by item 5 applies in relation to a home care agreement entered into, or varied, on or after the commencement of this item.