Schedule 1 Amendments

(section 3)

[1] Part 10, heading

substitute

Part 10 Additional primary supplements

Division 1 General

[2] After section 21.24

insert

Division 2 Payroll tax supplement

[3] After section 21.25B

insert

Division 3 Transitional supplement

[4] Sections 21.26A and 21.26B

substitute

Division 4 Conditional adjustment payment (CAP)

21.26A Application of Division 4

This Division applies in respect of a payment period that begins before 1 July 2008.

21.26B Definitions for Division 4

(1) In this Division:

accounting standard has the meaning given by section 9 of the Corporations Act 2001.

Note Accounting standards are available on the Internet at http://www.aasb.com.au.

CAP means conditional adjustment payment.

financial period, for an approved provider, means:

(a) unless paragraph (b) applies — the period of 12 months beginning on 1 November in a year; or

(b) if, under paragraph (2) (a), the Secretary determines another period of 12 months (being a period that begins on the first day of a month) for the approved provider — that other period.

previous financial year, in relation to a relevant financial year, means the period of 12 months ending immediately before the beginning of the relevant financial year.

relevant calendar year, in relation to a training period and an approved provider, means:

(a) unless paragraph (b) applies — the calendar year ending immediately before the beginning of the training period for the approved provider; or

(b) if, under paragraph (2) (b), the Secretary determines another period of 12 months (being a period that begins on the first day of a month) for the approved provider — that other period.

relevant financial year, in relation to a financial period and an approved provider, means:

(a) unless paragraph (b) applies — the period of 12 months ending on the 30 June immediately before the beginning of the financial period for the approved provider; or

(b) if, under paragraph (2) (c), the Secretary determines another period of 12 months (being a period that begins on the first day of a month) for the approved provider — that other period.

training period, for an approved provider, means:

(a) unless paragraph (b) applies — the period of 12 months beginning on 1 March in a year; or

(b) if, under paragraph (2) (d), the Secretary determines another period of 12 months (being a period that begins on the first day of a month) for the approved provider — that other period.

(2) The Secretary may determine another period of 12 months for an approved provider:

(a) for paragraph (b) of the definition of financial period, if the Secretary is satisfied, on reasonable grounds, that it would be impracticable for the approved provider to comply with the requirements of section 21.26F in relation to the period mentioned in paragraph (a) of that definition; or

(b) for paragraph (b) of the definition of relevant calendar year, if the Secretary is satisfied, on reasonable grounds, that it would be impracticable for the approved provider to comply with the requirements of section 21.26E in relation to the period mentioned in paragraph (a) of that definition; or

(c) for paragraph (b) of the definition of relevant financial year, if the Secretary is satisfied, on reasonable grounds, that it would be impracticable for the approved provider to comply with the requirements of section 21.26F in relation to the period mentioned in paragraph (a) of that definition; or

(d) for paragraph (b) of the definition of training period, if the Secretary is satisfied, on reasonable grounds, that it would be impracticable for the approved provider to comply with the requirements of section 21.26E in relation to the period mentioned in paragraph (a) of that definition.

Note It is intended that these Principles will be amended in 2007 to remove subsections (2), (3) and (4) and to amend the definitions of financial period, relevant calendar year, relevant financial year and training period to remove paragraph (b) of the definitions and references to paragraph (b) of the definitions.

(3) If the Secretary receives an application from an approved provider for a determination under subsection (2), the Secretary must, within 28 days after receiving the application, tell the approved provider, in writing, of the Secretary’s decision.

(4) If the Secretary’s decision is to refuse to make a determination for the approved provider, the Secretary must also give the approved provider a written statement of the reasons for the decision.

Note A decision of the Secretary under subsection (2) to refuse to make a determination is subject to review — see section 21.26H.

21.26C Requirements for notices

A notice under paragraph 21.26E (2) (b) or 21.26F (2) (b) must:

(a) be in a form approved by the Secretary; and

(b) include all the statements and information required by the form; and

(d) be signed by a person who:

(i) is one of the approved provider’s key personnel; and

(ii) is authorised by the approved provider to sign the notice.

21.26D Application of CAP

(1) Subject to subsection (2), CAP applies to a care recipient in respect of a payment period if the approved provider that provides the residential care to the care recipient complies with the requirements of this Division in respect of the payment period.

(2) Subsection (1) does not apply in respect of a payment period that begins before 1 April 2005.

21.26E Staff training

(1) This section applies if the payment period begins on or after 1 April 2005 and falls within a training period for the approved provider.

Note If the payment period is also within a financial period for the approved provider, the approved provider must also comply with section 21.26F. If the payment period begins on or after 1 July 2006, the approved provider must also comply with section 21.26G.

(2) The approved provider complies with the requirements of this section in respect of the payment period if:

(a) the approved provider encouraged staff training, or is taken under subsection (3) to have encouraged staff training, at the residential care service through which the residential care is provided to the care recipient, in the relevant calendar year for the training period; and

(b) the approved provider has, before the beginning of the payment period, given the Secretary a notice in writing including:

(i) a statement to the effect that the approved provider has encouraged, or is taken to have encouraged, staff training at the residential care service in the relevant calendar year; and

(ii) information about the training opportunities that were offered by the approved provider to staff at the residential care service in the relevant calendar year.

(3) An approved provider in respect of a residential care service that was not responsible for the operations of the residential care service during all or some of the relevant calendar year is taken to have encouraged staff training at the residential care service in the relevant calendar year.

21.26F Financial reports

(1) This section applies if the payment period falls within a financial period for the approved provider.

Note If the payment period is also within a training period for the approved provider, the approved provider must also comply with section 21.26E. If the payment period begins on or after 1 July 2006, the approved provider must also comply with section 21.26G.

(2) The approved provider complies with the requirements of this section in respect of the payment period if:

(a) the approved provider has done, or is taken under subsection (4) or (5) to have done, the following things:

(i) prepared a financial report that complies with subsection (3) for the relevant financial year for the financial period;

(ii) had the financial report audited by:

(A) a registered company auditor within the meaning of the Corporations Act 2001; or

(B) a person approved by the Secretary under subsection (6);

(iii) obtained from the auditor (or the approved person) an audit opinion including:

(A) a statement to the effect that the audit was conducted in accordance with the accounting standards specified in the opinion; and

(B) whether the financial report gives a true and fair view of the financial position and performance of the entity for the relevant financial year;

(iv) in the relevant financial year, provided a copy of the audited financial report (if any) for the previous financial year to, in respect of a residential care service provided by the provider, each person who asks for a copy and who is:

(A) a recipient of the service provided; or

(B) approved as a recipient of residential care and who is considering receiving residential care through that service;

(D) a person or agency authorised by the Secretary; and

(b) the approved provider has, before the beginning of the payment period, given the Secretary a notice in writing including a statement to the effect that the approved provider has complied with, or is taken to have complied with, paragraph (a) for the relevant financial year.

(3) For subparagraph (2) (a) (i), a financial report must:

(a) be a general purpose financial report within the meaning of Statement of Accounting Concepts SAC 2 ‘Objective of General Purpose Financial Reporting’ as in force at the commencement of this section; and

(b) be written as if the entity was a reporting entity within the meaning of Statement of Accounting Concepts SAC 1 ‘Definition of the Reporting Entity’ as in force at the commencement of this section; and

(c) be in accordance with the accounting standards as in force at the time the report was made, other than an accounting standard in relation to which the Secretary has granted an exemption to the entity under paragraph (7) (a); and

(d) give a true and fair view of the financial position and performance of the entity for the relevant financial year; and

(e) unless the Secretary has granted an exemption to the entity under paragraph (7) (b):

(i) treat residential aged care as a reportable segment within the meaning of accounting standard AASB 114 ‘Segment Reporting’; and

(ii) for accounting standard AASB 114 ‘Segment Reporting’, if the entity is a not-for-profit entity — be written as if the entity was not a not-for-profit entity.

Note Statement of Accounting Concepts SAC 1 ‘Definition of the Reporting Entity’ and Statement of Accounting Concepts SAC 2 ‘Objective of General Purpose Financial Reporting’ are available on the Internet at http://www.aasb.com.au.

(4) An approved provider in respect of a residential care service that was not responsible for the operations of the residential care service during any of the relevant financial year is taken to have complied with paragraph (2) (a) in respect of the residential care service for the relevant financial year.

(5) An approved provider in respect of a residential care service that was responsible for the operations of the residential care service during part only of the relevant financial year is taken to have complied with paragraph (2) (a) in respect of the residential care service for the relevant financial year if the approved provider complies with paragraph (2) (a) in respect of that part of the relevant financial year.

(6) For sub-subparagraph (2) (a) (ii) (B), the Secretary may approve a person if the Secretary is satisfied that the person has appropriate qualifications and experience.

(7) The Secretary may grant an exemption to an entity:

(a) for paragraph (3) (c) in relation to an accounting standard for a relevant financial year, if the Secretary is satisfied, on reasonable grounds, that it would be impracticable for the entity to comply with the requirements of the accounting standard for the relevant financial year; or

(b) for paragraph (3) (e) for a relevant financial year, if the Secretary is satisfied, on reasonable grounds, that it would be impracticable for the entity to comply with the requirements of paragraph (3) (e) for the relevant financial year.

Note It is intended that these Principles will be amended in 2007 to remove subsections (7), (8) and (9) and to amend paragraphs (3) (c) and (e) to remove the references to the exemptions.

(8) If the Secretary receives an application from an entity for an exemption under subsection (7), the Secretary must, within 28 days after receiving the application, tell the entity, in writing, of the Secretary’s decision.

(9) If the Secretary’s decision is to refuse to grant the exemption, the Secretary must also give the entity a written statement of the reasons for the decision.

Note A decision of the Secretary under subsection (7) to refuse to grant an exemption is subject to review — see section 21.26H.

(10) In this section:

entity means:

(a) the residential care service through which the residential care is provided to the care recipient; or

(b) the approved provider in respect of the residential care service.

21.26G Aged care workforce census

(1) This section applies to a payment period that begins on or after 1 July 2006.

Note If the payment period is also within a training period for the approved provider, the approved provider must also comply with section 21.26E. If the payment period is also within a financial period for the approved provider, the approved provider must also comply with section 21.26F.

(2) The approved provider complies with the requirements of this section in respect of the payment period if:

(a) the approved provider in relation to a care recipient in a residential care service:

(i) has participated, in accordance with subsection (3), in the most recent aged care workforce census, in relation to residential care in the area that includes the residential care service, that was undertaken by or on behalf of the Department; or

(ii) is taken, under subsection (4), to have complied with subparagraph (i); and

(b) the approved provider has, before the commencement of the payment period, given the Secretary a written statement to the effect that the approved provider has complied with, or is taken to have complied with, subparagraph (a) (i).

(3) If the approved provider receives an aged care workforce census form sent by or on behalf of the Department, the approved provider must:

(a) complete a census return to the satisfaction of the person specified in the census form and give the census return to the person by the date specified in the census form; or

(b) after the date specified in the census form — complete a census return to the satisfaction of the Department and give the census return to the Department.

(4) An approved provider in respect of a residential care service that was not responsible for the operations of the residential care service during all or some of the period covered by the census is taken to have complied with subparagraph (2) (a) (i) in respect of the residential care service for that census.

21.26H Review of decisions

Each of the following decisions is taken to be a reviewable decision under section 85-1 of the Act:

(a) a decision under subsection 21.26B (2) to refuse to make a determination;

(b) a decision under subsection 21.26F (7) to refuse to grant an exemption.