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Determinations/Aged Care as made
This determination sets the accommodation payment amount above which approved providers must apply to the Aged Care Pricing Commissioner.
Administered by: Social Services
Made 28 Jan 2014
Registered 30 Jan 2014
Tabled HR 11 Feb 2014
Tabled Senate 11 Feb 2014
Date of repeal 01 Jul 2014
Repealed by Aged Care (Principles and Determinations) Repeal Instrument 2014
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Aged Care (Maximum Accommodation Payment Amount) Determination 2014

I, Mitch Fifield, Assistant Minister for Social Services, make the following determination under subitems 26(1) and (2) of Schedule 2 to the Aged Care (Living Longer Living Better) Act 2013 and subsections 52G‑3(1) and (2) of the Aged Care Act 1997.

Dated: 28 January 2014

Mitch Fifield

Assistant Minister for Social Services

 

  

  

  


Contents

1............ Name of determination.................................................................................................. 1

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

3............ Authority....................................................................................................................... 1

4............ Definitions..................................................................................................................... 1

5............ Maximum refundable accommodation deposit amount.................................................. 1

6............ Maximum daily accommodation payment amount......................................................... 1

 


1  Name of determination

                   This determination is the Aged Care (Maximum Accommodation Payment Amount) Determination 2014.

2  Commencement

                   This determination commences on 1 July 2014.

3  Authority

                   This determination is made under subitems 26(1) and (2) of Schedule 2 to the Aged Care (Living Longer Living Better) Act 2013 and subsections 52G‑3(1) and (2) of the Aged Care Act 1997.

4  Definitions

                   In this determination:

Act means the Aged Care Act 1997.

price agreement day, for a person and an aged care service, means the day on which the person and the approved provider of the service agree, under paragraph 52F‑1(1)(b) of the Act, about the maximum amount that would be payable if the person paid an accommodation payment for the service.

Note:          A number of expressions used in this determination are defined in Schedule 1 to the Act, including the following:

(a)    accommodation payment;

(b)    daily accommodation payment;

(c)    refundable accommodation deposit.

5  Maximum refundable accommodation deposit amount

                   The maximum refundable accommodation deposit amount that an approved provider may charge a person is $550 000.

Note:          An approved provider may charge a person a refundable accommodation deposit amount of up to the amount specified in this section without obtaining approval from the Aged Care Pricing Commissioner. However, if an approved provider wishes to charge an amount of accommodation payment that is higher than the refundable accommodation deposit amount specified in this section, the approved provider may apply to the Aged Care Pricing Commissioner for approval to charge the higher amount (see section 52G‑4 of the Act and the Fees and Payments Principles 2014).

6  Maximum daily accommodation payment amount

             (1)  The maximum daily accommodation payment amount that an approved provider may charge a person is worked out as follows:

Maximum daily accommodation payment amount calculator

Step 1.   Work out the maximum permissible interest rate for the person using the calculator in subsection (2).

Step 2.   Multiply the rate worked out at step 1 by $550 000 (being the maximum refundable accommodation deposit amount referred to in section 5).

Step 3.   Divide the amount worked out at step 2 by 365.

The result is the maximum daily accommodation payment amount that the approved provider may charge the person.

             (2)  The maximum permissible interest rate for the person is worked out as follows:

Maximum permissible interest rate calculator

Step 1.   Work out the general interest charge rate for the person’s price agreement day under section 8AAD of the Taxation Administration Act 1953.

Step 2.   Multiply the rate worked out at step 1 by the number of days in the calendar year in which the person’s price agreement day falls.

Step 3.   Subtract 3 percentage points from the amount worked out at step 2.

The result is the maximum permissible interest rate for the person.

Note:          If a person’s price agreement day were the day on which this determination is made, the maximum daily accommodation payment amount that an approved provider could charge the person would be $99.30.