Subsidy Principles 2014

Chapter 1—Preliminary

1 Name of principles

These principles are the Subsidy Principles 2014.

3 Authority

These principles are made under section 96‑1 of the Aged Care Act 1997.

4 Definitions

In these principles:

1997 scheme service: see section 64.

2001 scheme service: see section 65.

2005 scheme service: see section 66.

2017 scheme service: see section 66A.

ACAP code, in relation to a health condition specified in the table in Schedule 1, means the Aged Care Assessment Program code specified in the table for that health condition.

accepted mental health condition means a mental health condition for which:

(a) the Repatriation Commission has accepted liability to pay a pension under the Veterans’ Entitlements Act; or

(b) the Military Rehabilitation and Compensation Commission has accepted liability to pay compensation under the Military Rehabilitation and Compensation Act 2004 or the Safety, Rehabilitation and Compensation Act 1988.

accessible location means a location that has an ARIA value of more than 1.84 but no more than 3.51.

accommodation wing, of a residential care service, includes any of the following:

(a) a building;

(b) a floor or level of a building;

that is used to provide accommodation for a care recipient being provided with residential care through the service.

accreditation application means an application under section 27 of the Quality and Safety Commission Rules.

Act means the Aged Care Act 1997.

ARIA value, in relation to a location, means the value given to that location in accordance with the methodology set out in the document titled Measuring Remoteness: Accessibility/Remoteness Index of Australia (ARIA), Revised Edition, Occasional Papers: New Series Number 14, published by the Health Department in October 2001, as the document existed on 1 August 2013.

Note: In 2014, the Measuring Remoteness: Accessibility/Remoteness Index of Australia (ARIA) was accessible at http://www.health.gov.au.

assisted resident has the meaning given by clause 1 of Schedule 1 to the Aged Care (Transitional Provisions) Act 1997.

Australian accounting standards means the accounting standards in force under section 334 of the Corporations Act 2001.

Note: In 2014, the Australian accounting standards were accessible at http://www.aasb.gov.au.

available home care fees amount has the meaning given by section 99A.

care day deficit, for a residential care service for a quarter, means the number of days worked out for the service for the quarter under section 19.

care recipient’s room, in a residential care service:

(a) means a room, or a part of a room, in the service that:

(i) is intended to be occupied as personal space by an individual care recipient; and

(ii) contains a bed to be used by the care recipient; and

(b) includes:

(i) the areas that are in the immediate vicinity of the bed in the room or the part of the room; and

(ii) the contents of the room or the part of the room; and

(iii) an ensuite, or a shared bathroom and toilet, that is for the use of a care recipient being provided with accommodation in the room or the part of the room.

Classification Principles means the Classification Principles in force under section 96‑1 of the Act.

concessional resident has the meaning given by clause 1 of Schedule 1 to the Aged Care (Transitional Provisions) Act 1997.

COVID‑19 support payment period: each of the following is a COVID‑19 support payment period:

(a) the payment period beginning on 1 February 2020;

(b) the payment period beginning on 1 June 2020.

domain has the same meaning as in the Classification Principles 2014.

domain category has the same meaning as in the Classification Principles 2014.

episode of short‑term restorative care: see section 111C.

episode of transition care: see section 111AA.

essential expenses:

(a) for a recipient of residential care: see section 61; and

(b) for a recipient of home care: see section 96.

exceptional circumstances determination application means an application to the Secretary by an approved provider of a residential care service for a determination under subsection 42‑5(1) of the Act that the service is taken, for the purposes of Division 42 of the Act, to meet its accreditation requirement.

further transition care needs, in relation to a care recipient, means the care needs of the care recipient, as assessed during an episode of transition care by an Aged Care Assessment Team or a member of such a team.

hardship reduction amount has the meaning given by section 99AA.

Health Department means the Department responsible for the administration of the National Health Act 1953.

highly accessible location means a location that has an ARIA value of no more than 1.84.

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

home care setting: short‑term restorative care is provided in a home care setting if it is provided other than in a facility where residential care is provided through a residential care service.

homeowner: see section 48.

hospital episode, in relation to a care recipient, means a continuous period during which the care recipient:

(a) is admitted to a hospital; and

(b) is provided with acute care or subacute care, or both.

innovative care service: see section 105.

KICA‑Cog means the assessment tool called the Kimberley Indigenous Cognitive Assessment, as that tool exists on 1 August 2013.

low intensity therapy, in relation to a care recipient, means therapy that:

(a) maintains the care recipient’s physical and cognitive functioning; and

(b) facilitates an improvement in the care recipient’s capacity in relation to activities of daily living.

Note: Examples of low intensity therapy include the following:

(a) occupational therapy;

(b) physiotherapy;

low‑means care recipient: see section 5.

major city means one of the major cities of Australia within the meaning of the Australian Statistical Geography Standard (ASGS): Volume 5—Remoteness Structure, July 2011, produced by the Australian Bureau of Statistics.

minimum monetary spend amount, in relation to a refurbished residential care service: see section 6.

moderately accessible location means a location that has an ARIA value of more than 3.51 but no more than 5.8.

Modified Monash Model classification:

(a) for a street address—means the classification given to that street address in accordance with the Modified Monash Model classification system; and

(b) for a suburb or locality—means the classification for that suburb or locality set out in, or worked out in accordance with the method set out in, the document published by the Health Department titled Modified Monash Model Suburb and Locality Classification—Home Care Subsidy, as that document exists on 1 January 2017.

Note 1: In 2017, the Modified Monash Model classification for a street address was available at http://www.doctorconnect.gov.au. This is relevant for residential care subsidy and flexible care subsidy.

Note 2: In 2017, the document referred to in paragraph (b) was available at http://www.health.gov.au. This is relevant for home care subsidy.

Modified Monash Model classification system means the Modified Monash Model geographical classification system developed by the Health Department for categorising metropolitan, regional, rural and remote locations according to both geographical remoteness and population size, based on population data published by the Australian Bureau of Statistics, as that system exists on 1 January 2017.

multi‑purpose service: see section 104.

newly built residential care service has the meaning given by section 50 of the Aged Care (Subsidy, Fees and Payments) Determination 2014.

non‑registered entity means an entity that:

(a) is not a registered entity; and

(b) has incurred a liability to pay payroll tax to a registered entity in relation to residential care provided to care recipients through a residential care service.

Example: An approved provider will be more likely to be a non‑registered entity if it is operated by a charitable, religious or government provider.

NPI‑NH test means the test called the Neuropsychiatric Inventory—Nursing Home Version, as the test exists on 1 August 2013.

payment period, in relation to flexible care provided as short‑term restorative care, means a period under section 111B in respect of which flexible care subsidy is payable in respect of flexible care provided as short‑term restorative care.

post‑2008 reform resident has the meaning given by section 44‑5C of the Aged Care (Transitional Provisions) Act 1997.

principal home has the meaning given by section 11A of the Social Security Act other than subsections 11A(8) and (9) (which deal with the effect of absences from the principal home).

Psychogeriatric Assessment Scales means the assessment tool of that name, as that tool exists on 1 August 2013.

Quality and Safety Commission Rules means the Aged Care Quality and Safety Commission Rules 2018.

quarter means a period of 3 months.

refurbishment cost, in relation to a residential care service, has the meaning given by section 7.

registered entity means an entity that is registered with a revenue office (however described) of a State or Territory for the purposes of paying payroll tax in accordance with the laws of that State or Territory.

Example: An approved provider will be more likely to be a registered entity if it is operated on a for profit basis.

relevant resident means a care recipient to whom residential care (other than respite care) is being provided through a residential care service and who:

(a) is not being provided with care on an extra service basis; and

(b) enters the service:

(i) if the service was certified on 1 October 1997—after 30 September 1997; or

(ii) if the service was certified after 1 October 1997—after the date the service is certified; or

(iii) on or after 17 October 2014.

remote location means a location that has an ARIA value of more than 5.8 but no more than 9.08.

residential care setting: short‑term restorative care is provided in a residential care setting if it is provided in a facility where residential care is provided through a residential care service.

Rowland Universal Dementia Assessment Scale means the assessment tool of that name, as that tool exists on 1 August 2013.

short‑term restorative care: see section 106A.

significantly refurbished residential care service means a residential care service in relation to which a determination under subsection 52(1) or 53(1) is in effect.

Social Security Act means the Social Security Act 1991.

STRC Programme means the program administered by the Commonwealth and known as the Short‑term Restorative Care Programme.

subacute care means medical or related care or services provided to a care recipient who is not in the acute phase of an illness.

Note: Examples of subacute care include the following:

(a) geriatric evaluation and management;

(b) palliative care;

(d) rehabilitation.

supported resident has the meaning given by clause 1 of Schedule 1 to the Aged Care (Transitional Provisions) Act 1997.

transition care: see section 106.

unrealisable asset, of a care recipient, has the meaning given by subsections 11(12) and (13) of the Social Security Act.

very remote location means a location that has an ARIA value of more than 9.08 but no more than 12.

veteran means a person:

(a) who is taken to have rendered eligible war service under section 7 of the Veterans’ Entitlements Act; or

(b) in respect of whom a pension is payable under subsection 13(6) of that Act; or

(i) a member of the Forces within the meaning of subsection 68(1) of that Act; or

(ii) a member of a Peacekeeping Force within the meaning of that subsection; or

(d) who is:

(i) a member within the meaning of the Military Rehabilitation and Compensation Act 2004; or

(ii) a former member within the meaning of that Act; or

(e) who is an employee within the meaning of the Safety, Rehabilitation and Compensation Act 1988.

Note: The Acts mentioned in paragraphs (d) and (e) provide that, in some cases:

(a) a member of the Forces, or a member of a Peacekeeping Force, includes a person who is no longer serving; and

(b) an employee includes a person who has ceased to be an employee.

Veterans’ Entitlements Act means the Veterans’ Entitlements Act 1986.

Note: A number of expressions used in these principles are defined in the Act, including the following:

(a) payment period;

(b) respite care.

5 Meaning of low‑means care recipient

A care recipient is a low‑means care recipient on a day if:

(a) the care recipient is being provided with residential care through a residential care service on that day; and

(b) either:

(i) the care recipient is eligible for accommodation supplement under section 44‑28 of the Act for that day; or

(ii) on the day (the entry day) on which the care recipient entered the residential care service, the care recipient’s means tested amount was less than the maximum accommodation supplement amount for the entry day.

Note: Maximum accommodation supplement amount has the meaning given by subsection 44‑21(6) of the Act.

6 Meaning of minimum monetary spend amount in relation to refurbished residential care service

The minimum monetary spend amount in relation to a refurbished residential care service is the amount worked out by multiplying $25 000 by 40% of the lower of:

(a) the total number of care recipient’s rooms in the service before the commencement of the refurbishment; and

(b) the total number of care recipient’s rooms in the service after the completion of the refurbishment.

7 Meaning of refurbishment cost in relation to residential care service

(1) The refurbishment cost in relation to a residential care service is the total cost of the refurbishment, or the proposed refurbishment, of the service unless subsection (2) applies in relation to the refurbishment.

(2) If:

(a) the refurbishment, or the proposed refurbishment, includes fire safety improvements; and

(b) the cost of those improvements is more than 25% of the minimum monetary spend amount in relation to the service;

then the refurbishment cost in relation to the service is the amount worked out using the following formula:

where:

A is the total cost of the refurbishment.

B is the cost of the fire safety improvements.

C is the amount that is 25% of the minimum monetary spend amount in relation to the service.

Chapter 2—Residential care subsidy

Part 1A—Meaning of residential care

7A Purpose of this Part

For paragraph 41‑3(2)(d) of the Act, this Part specifies care that is not residential care.

7B Care that is not residential care

For paragraph 41‑3(2)(d) of the Act, flexible care in the form of short‑term restorative care is not residential care.

Part 1—Who is eligible for residential care subsidy?

Division 1—Purpose of this Part

8 Purpose of this Part

For Division 42 of the Act, this Part specifies matters in relation to whether an approved provider of a residential care service is eligible for residential care subsidy for providing residential care to care recipients, including the following:

(a) the requirements for when a care recipient is on leave from a residential care service (Division 2);

(b) provisions relating to the making of a determination by the Secretary that a residential care service is taken to meet its accreditation requirement (Division 3).

Division 2—Leave from residential care services

9 Care recipient provided with transition care

(1) For paragraph 42‑2(3A)(b) of the Act, this section specifies requirements that must be met for a care recipient (in respect of whom flexible leave subsidy is payable for a day) to be on leave under section 42‑2 of the Act from a residential care service on that day.

Note: A care recipient can be taken to be provided with residential care while he or she is on leave from that care (see section 42‑2 of the Act).

(2) The care recipient must be in an episode of transition care.

Note: Episode of transition care is defined in section 111AA.

Division 3—Exceptional circumstances determinations

10 Determination by Secretary

For subsection 42‑5(1) of the Act, the Secretary may determine that a residential care service is taken, for the purposes of Division 42 of the Act, to meet its accreditation requirement, in accordance with this section, if:

(a) the Secretary receives an exceptional circumstances determination application from the approved provider of the service; and

(b) the Secretary is satisfied of the matters under section 12.

Note 1: An approved provider is not eligible for residential care subsidy in respect of a day if the residential care service through which residential care is provided does not meet its accreditation requirement (see sections 42‑1 and 42‑4 of the Act).

Note 2: Exceptional circumstances determination application is defined in section 4.

11 Application for determination

(1) The Secretary may give a written request to the Quality and Safety Commissioner for the following information about a residential care service:

(a) whether an accreditation application by the approved provider of the service has been received by the Quality and Safety Commission;

(b) if so, information about the status of the accreditation application.

Note: Accreditation application is defined in section 4.

(2) If the response states that the approved provider has made an accreditation application in relation to the residential care service, and that a decision has been made not to accredit or re‑accredit the service, or that no decision has been made on the application:

(a) the accreditation application is taken to include an exceptional circumstances determination application in relation to the service; and

(b) the date on which the response was received by the Secretary is taken to be the date on which the exceptional circumstances determination application was received by the Secretary.

(3) Subsection (2) applies whether or not the accreditation application complies with subsection 28(1) of the Quality and Safety Commission Rules.

(4) Nothing in this section prevents an approved provider of a residential care service from making an exceptional circumstances determination application to the Secretary in relation to the service.

12 Matters the Secretary must take into account

(1) In deciding whether to make a determination that a residential care service is taken to meet its accreditation requirement, the Secretary must take into account the following matters:

(a) the reasons for the residential care service not meeting the standards required for accreditation;

(b) the action that the approved provider must take for the residential care service to meet those standards;

(c) the impact of the residential care service not meeting those standards on the residential care, accommodation and other services provided to care recipients through the service.

Note: Before making a determination, the Secretary must first be satisfied that exceptional circumstances apply to the service (see subsection 42‑5(1) of the Act).

(2) The Secretary may also take into account any other relevant matter.

Part 2—How is residential care subsidy paid?

Division 1—Purpose of this Part

13 Purpose of this Part

For Division 43 of the Act, this Part specifies matters in relation to the payment of residential care subsidy by the Commonwealth to an approved provider for providing residential care to care recipients, including the following:

(a) the kinds of payments made in respect of the service that are capital payments and working out the proportion of the amounts equal to the capital payments that are to be deducted (Division 2);

(b) the conditions that must be met for non‑compliance deductions to not apply in respect of the residential care service and the circumstances in which a non‑compliance deduction will not apply even if a condition has not been met (Division 3).

Division 2—Capital repayment deductions

14 Kinds of payments that are capital payments

For paragraph (b) of the definition of capital payment in subsection 43‑6(5) of the Act, each of the following kinds of payment is a capital payment:

(a) financial assistance by way of a grant under Part II, or Division 3 of Part III, of the Aged or Disabled Persons Care Act 1954, as in force before it was repealed;

(b) a grant of a Commonwealth benefit under Part VAB or VAC of the National Health Act 1953;

(d) a grant approved on or after 1 July 1989 under the Commonwealth program known as the Residential Aged Care Upgrading Program;

(e) capital funding approved on or after 1 July 1989 under the Commonwealth program known as the Small Homes Capital Funding Initiative.

Note: A residential care grant is also a capital payment (see paragraph (a) of the definition of capital payment in subsection 43‑6(5) of the Act).

15 Working out proportion of amounts to be deducted if distinct part of residential care service has extra service status

(1) For subsection 43‑6(3) of the Act, this section sets out how the proportion of the amounts equal to the capital payments made in respect of a residential care service (for which extra service status is granted only in respect of a distinct part of the service) is to be worked out.

(2) The proportion is:

$Start formula P times start fraction ESP over AP end fraction end formula$

where:

AP (short for allocated places) is the number of places allocated by the Secretary to the approved provider under Part 2.2 of the Act, in respect of residential care subsidy, that are included in the residential care service.

ESP (short for extra service places) is the number of places included in the distinct part of the residential care service, for which extra service status is granted, that are extra service places.

P (short for proportion) is:

(a) for each capital payment for which the first capital repayment deduction is to be made within 5 years after approval of the capital payment—100%; or

(b) for each capital payment for which the first capital repayment deduction is to be made more than 5 years after approval of the capital payment—100% reduced by 10% for each complete year over 5 years.

(3) For subsection (2):

(a) a place can only be counted as an extra service place or an allocated place if the allocation of the place has taken effect under section 15‑1 of the Act; and

(b) a period of at least 6 months and less than 1 year is to be counted as a complete year.

Note: The allocation of a place that is a provisional allocation cannot be counted (see section 15‑1 of the Act).

Division 3—Non‑compliance deductions

16 When non‑compliance deductions may apply—conditions that must be met

For subsection 43‑8(1) of the Act, conditions (to which the allocation of places included in a residential care service are subject under section 14‑5 or 14‑6 of the Act) relating to the proportion of care to be provided to the following:

(a) assisted residents;

(b) concessional residents;

(d) recipients of respite care;

(e) supported residents;

are specified as conditions in respect of which non‑compliance deductions apply if the conditions have not been met.

Note: Assisted resident, concessional resident, low‑means care recipient and supported resident are defined in section 4. Respite care is defined in the Dictionary to the Act.

17 Circumstances in which non‑compliance deductions do not apply

(1) For subsection 43‑8(2) of the Act, this section specifies the circumstances in which non‑compliance deductions do not apply in respect of a residential care service even if a condition specified in section 16 has not been met.

(2) Non‑compliance deductions do not apply in respect of the residential care service for a quarter if:

(a) fewer than 6 care recipients being provided with residential care through the service in the quarter entered the service after 30 September 1997; or

(b) for a service that has extra service status—fewer than 6 care recipients being provided with residential care through the service in the quarter (each receiving care on a permanent basis and not occupying extra service places) entered the service after 30 September 1997; or

Note: The care day deficit is worked out under section 19.

(3) If:

(a) one or more allocated places (the additional places) are transferred to the residential care service (the receiving service) from another residential care service (the other service); and

(b) some or all of the additional places are occupied by care recipients from the other service; and

(c) the receiving service was not subject to a non‑compliance deduction for the quarter before the transfer of the allocated places;

then non‑compliance deductions do not apply in respect of the receiving service for the number of quarters that is the lesser of:

(d) 4; and

(e) the number of additional places divided by 3 (rounded up to the nearest whole number).

(4) Non‑compliance deductions do not apply in respect of the residential care service for a quarter if:

(a) one or more allocated places are not occupied for the quarter; and

(b) the care day deficit for the service would have been less than 92 if the allocated place or places had been occupied by:

(i) an assisted resident; or

(ii) a concessional resident; or

(iii) a low‑means care recipient; or

(iv) a supported resident.

18 Working out amounts of non‑compliance deductions

(1) For subsection 43‑8(4) of the Act, this section sets out how to work out the amount of a non‑compliance deduction in respect of a residential care service for a quarter.

(2) The non‑compliance deduction, for a residential care service for a quarter, is:

$Start formula start fraction A times open bracket B minus C close bracket over D end fraction end formula$

where:

A is the care day deficit for the residential care service for the quarter.

B is the total of the basic subsidy amounts, worked out under Subdivision 44‑B of the Act and Subdivision 44‑B of the Aged Care (Transitional Provisions) Act 1997, for each day of residential care provided through the residential care service in the quarter for each care recipient.

C is the total of the reductions, worked out in accordance with sections 44‑21 to 44‑23 of the Act and by applying the income test under Subdivision 44‑E of the Aged Care (Transitional Provisions) Act 1997, for each day of residential care provided through the residential care service in the quarter for each care recipient.

D is the total of the number of days of residential care provided through the residential care service in the quarter for each care recipient.

(3) However, if C is greater than B, the non‑compliance deduction is zero.

19 Working out the care day deficit

The care day deficit for a residential care service for a quarter is worked out as follows:

Care day deficit calculator

Step 1. Count the number of care recipients being provided with residential care through the residential care service who:

(a) entered the service after 30 September 1997; and

(b) during the quarter, are receiving care on a permanent basis and are not occupying a place that is an extra service place.

Step 2. Multiply the number of care recipients counted under step 1 by the number of days in the quarter.

Step 3. Count the number of care recipients mentioned in step 1 who are:

(a) assisted residents; and

(b) concessional residents; and

(d) supported residents.

Step 4. Multiply the number of care recipients counted under step 3 by the number of days in the quarter.

Step 5. Subtract the number worked out under step 4 from the number worked out under step 2.

The result is the care day deficit for the residential care service for the quarter.

Part 3—What is the amount of residential care subsidy?

Division 1—Purpose of this Part

20 Purpose of this Part

For Division 44 of the Act, this Part sets out matters in relation to the amount of residential care subsidy payable to an approved provider of a residential care service in respect of a care recipient who is being provided with residential care through the service, including the following:

(a) other matters on which the Minister may base a determination of different amounts (including nil amounts) of the basic subsidy amount for the care recipient (Division 2);

(b) the following primary supplements that may apply to the care recipient (Division 3):

(i) the respite supplement;

(ii) the oxygen supplement;

(iii) the enteral feeding supplement;

(i) the compensation payment reduction;

(ii) the care subsidy reduction;

(d) other matters relating to the following other supplements that may apply to the care recipient (Division 5):

(i) the accommodation supplement;

(ii) the hardship supplement;

(e) the following other supplements that may apply to the care recipient (Division 5):

(i) the viability supplement;

(ii) the veterans’ supplement;

(iii) the homeless supplement;

(iv) the COVID‑19 support supplement;

(v) the residential care support supplement;

(vi) the 2021 basic daily fee supplement.

Division 2—Basic subsidy amount

21 Determination by Minister of basic subsidy amount for care recipient—other matters

For paragraph 44‑3(3)(e) of the Act, other matters on which the Minister may base a determination of different amounts (including nil amounts) of the basic subsidy amount for a care recipient who is being provided with residential care through a residential care service are the following:

(a) whether the service provides a greater proportion of care to recipients of respite care than the proportion required to be provided by conditions (if any) imposed on the allocation of places to the approved provider of the service;

(b) whether, on a particular day, the number of days on which the care recipient had previously been provided with residential care as respite care during the financial year in which the day occurs equals or exceeds the maximum number of days specified in paragraph 23(1)(c);

(c) if an appraisal of the care recipient’s care needs is received after the end of the period mentioned in paragraph 26‑1(a) or (b) of the Act (whichever is applicable)—the circumstances of the appraisal not being received within that period;

(d) if a reappraisal of the care recipient’s care needs is received after the end of the reappraisal period mentioned in section 27‑2 of the Act—the circumstances of the reappraisal not being received within that period.

Division 3—Primary supplements

Subdivision A—Respite supplement

22 Respite supplement

The respite supplement for a care recipient in respect of a payment period is the sum of all the respite 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 respite supplement.

23 Eligibility for respite supplement

(1) A care recipient is eligible for a respite supplement on a particular day if, on that day:

(a) the residential care provided through the residential care service was provided as respite care; and

(b) the care recipient’s approval under Part 2.3 of the Act as a care recipient was not limited so as to preclude the provision of respite care; and

(c) the number of days on which the care recipient had previously been provided with residential care as respite care during the financial year in which the day occurred is less than:

(i) 63; or

(ii) if the Secretary has increased the number of days under subsection (2)—the number of days as so increased (or as most recently increased).

(2) The Secretary may increase the number of days on which a care recipient can be provided with residential care as respite care during a financial year by up to 21 if the Secretary considers that an increase in the number of days is necessary because of any of the following:

(a) carer stress;

(b) severity of the care recipient’s condition;

(d) any other relevant matter.

(3) An increase under subsection (2) may be made more than once in a financial year.

Subdivision B—Oxygen supplement

24 Oxygen supplement

The oxygen supplement for a care recipient in respect of a payment period is the sum of all the oxygen 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) a determination was in force under subsection 25(3) in relation to the care recipient; and

(c) the residential care provided through the residential care service included providing oxygen to the care recipient in circumstances specified in section 26.

25 Eligibility for oxygen supplement—determination by Secretary

(1) An approved provider that is providing, or is to provide, residential care to a care recipient may apply to the Secretary for a determination under subsection (3) that the care recipient is eligible for an oxygen supplement.

(2) The application must:

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

(b) include the information, and be accompanied by any documents, specified by the approved form.

(3) If the Secretary receives an application from an approved provider in respect of a care recipient under subsection (1), the Secretary may determine that the care recipient is eligible for an oxygen supplement.

Note: A decision to refuse to make a determination is a reviewable decision under section 27.

(4) A determination made under subsection (3) is not a legislative instrument.

(5) The Secretary must notify the applicant, in writing, of the Secretary’s decision on whether to make the determination. The notice must be given within 28 days after the Secretary receives the application.

26 Circumstances relating to provision of oxygen

For paragraph 24(c), the circumstances for the provision of oxygen are as follows:

(a) the materials and equipment used by the residential care service to provide the oxygen must be hired, temporarily obtained or owned by the residential care service;

(b) the oxygen must not be provided:

(i) because of a medical emergency; or

(ii) on a short‑term or episodic basis;

(c) a medical practitioner must have certified, in writing, that the care recipient has a continual need for the provision of oxygen;

(d) the oxygen must be provided in the most economical way available, taking into account the medical needs of the care recipient.

27 Reviewable decision

(1) A decision under subsection 25(3) to refuse to make a determination that a care recipient is eligible for an oxygen supplement is a reviewable decision under section 85‑1 of the Act.

(2) Part 6.1 of the Act applies to a reviewable decision mentioned in subsection (1) as if a reference in that Part to this Act included a reference to these principles.

Subdivision C—Enteral feeding supplement

28 Enteral feeding supplement

The enteral feeding supplement for a care recipient in respect of a payment period is the sum of all the enteral feeding 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) a determination was in force under subsection 29(3) in relation to the care recipient; and

(c) the residential care provided through the residential care service included providing enteral feeding to the care recipient in circumstances specified in section 30.

29 Eligibility for enteral feeding supplement—determination by Secretary

(2) The application must:

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

(b) include the information, and be accompanied by any documents, specified by the approved form.

Note: A decision to refuse to make a determination is a reviewable decision under section 31.

(4) A determination made under subsection (3) is not a legislative instrument.

30 Circumstances relating to provision of enteral feeding

For paragraph 28(c), the circumstances for the provision of enteral feeding are as follows:

(a) a medical practitioner must have certified, in writing, that the care recipient has a medical need for enteral feeding;

(b) the care recipient must have been given a liquid dietary formula (not including food supplements or any supplementary feeding connected with the administration of the dietary formula) administered by a nasogastric, gastrostomy or jejeunostomy feeding method;

(c) a medical practitioner or dietician must have certified, in writing, that the dietary formula is a nutritionally complete formula;

(d) the enteral feeding must not be intermittent or supplementary enteral feeding given in addition to oral feeding;

(e) the enteral feeding must be provided in the most economical way available, taking into account the medical needs of the care recipient.

31 Reviewable decision

(1) A decision under subsection 29(3) to refuse to make a determination that a care recipient is eligible for an enteral feeding supplement is a reviewable decision under section 85‑1 of the Act.

(2) Part 6.1 of the Act applies to a reviewable decision mentioned in subsection (1) as if a reference in that Part to this Act included a reference to these principles.

Division 4—Reductions in subsidy

Subdivision A—Compensation payment reduction

37 Determination by Secretary if judgment or settlement does not, or does not adequately, take into account future costs of residential care

(1) For subsections 44‑20(5) and (6) of the Act, in making a determination in respect of a judgment or settlement entitling a care recipient to compensation, the Secretary must take into account the following matters:

(a) the amount of the judgment or settlement;

(b) for a judgment—the components stated in the judgment and the amount stated for each component;

(d) the amounts spent on residential care at the time of the judgment or settlement.

Note: For paragraph (1)(b), examples of the components of a judgment include the following:

(a) loss of income;

(b) costs of future care.

(2) The Secretary may also take into account any other matters the Secretary considers relevant, including the following:

(a) the amounts that are likely to be paid to, or withheld by, other government agencies because of the judgment or settlement;

(b) the amounts spent on care (other than residential care) at the time of the judgment or settlement;

(d) other costs of care for which the care recipient is likely to be liable;

(e) the amount of the accommodation bond, accommodation payment or accommodation contribution paid or payable by the care recipient;

(f) other reasonable amounts (not related to care) that the care recipient:

(i) had spent at the time of the judgment or settlement; or

(ii) is likely to be liable for.

38 Determination by Secretary if compensation information not given on request

(1) For subsection 44‑20A(5) of the Act, in determining compensation payment reductions for a care recipient if information or a document requested about a judgment, settlement or reimbursement arrangement is not produced or given, the Secretary must take into account the amounts spent on residential care at the time of the judgment, settlement or reimbursement arrangement.

(2) The Secretary may also take into account any other matters the Secretary considers relevant, including the following:

(a) the amount of the judgment, settlement or reimbursement arrangement;

(b) for a judgment—the components stated in the judgment and the amount stated for each component;

(d) the amounts that are likely to be paid to or withheld by other government agencies because of the judgment, settlement or reimbursement arrangement;

(e) the amounts spent on care (other than residential care) at the time of the judgment, settlement or reimbursement arrangement;

(f) the likely cost of residential care for the care recipient;

(g) other costs of care for which the care recipient is likely to be liable;

(h) the amount of the accommodation bond, accommodation payment or accommodation contribution paid or payable by the care recipient;

(i) other amounts, not related to care, that the care recipient:

(i) had spent at the time of the judgment, settlement or reimbursement arrangement; or

(ii) is likely to be liable for.

Subdivision B—Care subsidy reduction—general

39 Classes of people for whom care subsidy reduction is taken to be zero

(1) For paragraph 44‑23(1)(c) of the Act, the classes of persons for whom a care subsidy reduction is taken to be zero are the following:

(a) care recipients who leave a residential care service (without entering another residential care service), or who die, before the approved provider of the service has been informed of the care recipient’s care subsidy reduction (if any);

(b) care recipients who are not, within 6 months of entry to the residential care service, informed of the care recipient’s care subsidy reduction (if any);

(d) care recipients who are described in paragraph 85(4)(b) of the Veterans’ Entitlements Act (which describes former prisoners of war);

(e) care recipients for whom the care subsidy reduction is worked out as less than $1.

(2) If a care recipient is included in the class of persons mentioned in paragraph (1)(b), the care recipient is included in that class from the day the care recipient enters the residential care service until the day the care recipient is informed of the care recipient’s care subsidy reduction.

40 Matters to which Secretary must have regard in deciding whether to determine if care subsidy reduction is to be taken to be zero

(1) For subsection 44‑23(4) of the Act, in deciding whether to determine that the care subsidy reduction in respect of a care recipient is to be taken to be zero, the Secretary must have regard to the following matters:

(a) the care recipient’s total assessable income (worked out in accordance with section 44‑24 of the Act and section 41 of these principles) and assets (worked out in accordance with section 44‑26A of the Act and section 47 of these principles);

(b) the care recipient’s financial arrangements;

(i) under the Social Security Act; or

(ii) under the Veterans’ Entitlements Act; or

(iii) from any other source;

(d) whether the care recipient has taken steps to obtain information about his or her entitlement to pension, benefit or other income support payments;

(e) whether the care recipient has access to financial assistance:

(i) under section 1129 of the Social Security Act (relating to access to financial hardship rules for pensions); or

(ii) under the pension loans scheme under Division 4 of Part 3.12 of the Social Security Act; or

(iii) from any other source;

(f) whether any income of the care recipient is income that the care recipient does not reasonably have access to;

(g) whether there is a charge on the care recipient’s income over which the payment of resident fees cannot practically take precedence;

(h) whether any assets of the care recipient are unrealisable assets;

(i) whether the care recipient is in Australia on a temporary basis.

Note: Unrealisable asset is defined in section 4.

(2) The Secretary may have regard to any other matters the Secretary considers relevant.

(3) To enable the Secretary to have regard to the matters mentioned in paragraph (1)(c) or (d), the Secretary may:

(a) require the care recipient to seek information from the relevant Department about his or her entitlement to a benefit, income support payment or other assistance, and give the Secretary copies of written replies from the Department; or

(b) advise the care recipient to seek advice about his or her financial arrangements from the Financial Information Service established by Centrelink.

Subdivision C—Care subsidy reduction—amounts excluded from total assessable income

41 Working out care recipient’s means tested amount—amounts excluded from care recipient’s total assessable income

For subsection 44‑24(5) of the Act, the amounts (in this Subdivision called excluded amounts) that are to be taken, in relation to the kinds of care recipients specified in sections 42 to 46, to be excluded from determinations by the Secretary under subsection 44‑24(1) or paragraph 44‑24(2)(b), (3)(b) or (4)(b) of the Act are the following:

(a) disability pensions and permanent impairment compensation payments mentioned in section 42;

(b) gifts mentioned in section 43;

(d) GST compensation mentioned in section 45;

(e) clean energy payments mentioned in section 46.

42 Excluded amounts—disability pensions and permanent impairment compensation payments

(1) For a person who has qualifying service under section 7A of the Veterans’ Entitlements Act, or the partner of such a person, the amount (if any) of disability pension (within the meaning of subsection 5Q(1) of the Veterans’ Entitlements Act) paid to the person that is exempt under section 5H of that Act is an excluded amount.

(2) For a person who is a member or former member (within the meaning of the Military Rehabilitation and Compensation Act 2004) or the partner of such a person, each of the following is an excluded amount:

(a) any amount of compensation for permanent impairment paid to the person under Part 2 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004;

(b) any amount of Special Rate Disability Pension paid to the person under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004.

43 Excluded amounts—gifts

(1) For a person who, on or before 20 August 1996, disposed of ordinary income, the amount of ordinary income disposed of on or before 20 August 1996 that is included in the person’s ordinary income under:

(a) sections 1106, 1107, 1108 and 1109 of the Social Security Act; or

(b) sections 48, 48A, 48B and 48C of the Veterans’ Entitlements Act;

is an excluded amount.

Note: Sections 1106, 1107, 1108 and 1109 of the Social Security Act, and sections 48, 48A, 48B and 48C of the Veterans’ Entitlements Act, deal with disposal of ordinary income.

(2) For a person who, on or before 20 August 1996, disposed of assets, the amount of ordinary income the person is taken to receive because assets disposed of on or before 20 August 1996 are assessed as financial assets under:

(a) section 1076, 1077 or 1078 of the Social Security Act; or

(b) sections 46D and 46E of the Veterans’ Entitlements Act;

is an excluded amount.

Note: Section 1076, 1077 or 1078 of the Social Security Act, and sections 46D and 46E of the Veterans’ Entitlements Act, deal with deemed income from financial assets.

44 Excluded amounts—rent receipts

(1) For a care recipient for whom a daily accommodation contribution or a daily accommodation payment is payable, the amount of any income received by the care recipient, or the care recipient’s partner, from rental of the care recipient’s principal home to another person is an excluded amount.

Note 1: Paragraph 8(8)(znaa) of the Social Security Act and paragraph 5H(8)(nf) of the Veterans’ Entitlements Act describe how, for the purposes of each Act, income is defined for a person who is accruing a liability to pay a daily accommodation payment or a daily accommodation contribution.

Note 2: Subsection 5L(6A) of the Veterans’ Entitlements Act describes how, for the purposes of that Act, assets are defined for a person who is accruing a liability to pay a daily accommodation payment or a daily accommodation contribution.

(2) Subject to subsection (3), this section only applies to care recipients who first entered residential care on or before 31 December 2015.

(3) This section does not apply if the care recipient re‑entered residential care after 31 December 2015, having previously ceased residential care for a continuous period of more than 28 days (other than because the person was on leave).

45 Excluded amounts—GST compensation

(1) This section applies in relation to:

(a) a person receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to the following provisions of that Act:

(i) for a person receiving a disability pension payable at the general rate—section 22;

(ii) for a person receiving a disability pension payable at the general rate including an increased rate for a war‑caused injury or disease—sections 22 and 27;

(iii) for a person receiving a disability pension payable at the intermediate rate—section 23;

(iv) for a person receiving a disability pension payable at the intermediate rate including an increased rate for a war‑caused injury or disease—sections 23 and 27;

(v) for a person receiving a disability pension payable at the special rate—section 24;

(vi) for a person receiving a war widow or widower pension—subsection 30(1); and

(b) a person receiving a pension under Part 6 of Chapter 4, or a weekly amount of compensation under Part 2 of Chapter 5, of the Military Rehabilitation and Compensation Act 2004 at a rate determined under or by reference to the following provisions of that Act:

(i) for a person receiving a Special Rate Disability Pension—sections 198 and 204;

(ii) for a person receiving a weekly amount of compensation for the death of the person’s partner—subsection 234(5).

(2) The amount that is equal to 4% of the amount of pension, or the weekly amount of compensation, payable to a person under a provision referred to in subsection (1), as applicable from time to time, is an excluded amount.

Note 1: Part II of the Veterans’ Entitlements Act deals with pensions, other than service pensions, payable to veterans and their dependants.

Note 2: Part IV of the Veterans’ Entitlements Act deals with pensions payable to members of the Defence Forces or a Peacekeeping Force and their dependants.

Note 3: Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004 gives former members who are entitled to compensation for incapacity for work a choice to receive a Special Rate Disability Pension instead of compensation.

Note 4: Part 2 of Chapter 5 of the Military Rehabilitation and Compensation Act 2004 gives wholly dependent partners of deceased members an entitlement to compensation in respect of the death of the members. The compensation may be taken as a lump sum or as a weekly amount.

46 Excluded amounts—clean energy payments

For a care recipient who is being provided with residential care through a residential care service, each of the following is an excluded amount:

(a) any amount of clean energy advance, clean energy supplement or quarterly clean energy supplement paid to the care recipient under the Social Security Act;

(b) any amount of clean energy advance, clean energy supplement or quarterly clean energy supplement paid to the care recipient under the Veterans’ Entitlements Act.

Subdivision CA—Care subsidy reduction—amounts included in total assessable income

46A Included amounts—rent receipts and the Social Security Act 1991

(1) For subsection 44‑24(6) of the Act, the provisions of the Social Security Act 1991 apply as if paragraph 8(8)(znaa) of that Act were omitted.

(2) This section only applies to care recipients who, on or after 1 January 2016:

(a) first entered residential care; or

(b) re‑entered residential care having previously ceased residential care for a continuous period of more than 28 days (other than because the person was on leave).

46B Included amounts—rent receipts and the Veterans Entitlements Act 1986

(1) For subsection 44‑24(7) of the Act, the provisions of the Veterans Entitlements Act 1986 apply as if paragraph 5H(8)(nf) of that Act were omitted.

(2) This section only applies to care recipients who, on or after 1 January 2016:

(a) first entered residential care; or

(b) re‑entered residential care having previously ceased residential care for a continuous period of more than 28 days (other than because the person was on leave).

Subdivision D—Care subsidy reduction—value of assets

47 Working out care recipient’s means tested amount—value of assets

(1) For subsection 44‑26A(1) of the Act, the value of a person’s assets is the value worked out in accordance with Division 1 of Part 3.12 of the Social Security Act, reduced by any compensation payments received by the person under:

(a) the Compensation (Japanese Internment) Act 2001; or

(b) the Veterans’ Entitlements (Compensation—Japanese Internment) Regulations 2001; or

(d) Schedule 5 to the Social Security and Veterans’ Affairs Legislation Amendment (One‑off Payments and Other 2007 Budget Measures) Act 2007.

(2) However, the following provisions of Division 1 of Part 3.12 of the Social Security Act do not apply for the purposes of working out the person’s assets:

(a) paragraphs 1118(1)(a), (b) and (g), subparagraphs 1118(1)(ga)(ii) and (gb)(ii), paragraphs 1118(1)(u) and (v) and subsection 1118(4) (Certain assets to be disregarded in calculating the value of a person’s assets);

(b) section 1118AB (Value of person’s assets reduced: certain transactions to do with aged care accommodation bonds);

(2A) Also, subsection 1121(1) of the Social Security Act does not apply, for the purposes of working out the value of the person’s assets, to a charge or encumbrance over the amount of any refundable deposit balance in respect of a refundable deposit paid by the person.

Value of home

(3) For subsection 44‑26A(7) of the Act, the value of a home is the value worked out after applying this section.

48 Meaning of homeowner

(1) For the definition of homeowner in subsection 44‑26B(1) of the Act:

(a) a person who is not a member of a couple is a homeowner if:

(i) the person has a right or interest in the person’s principal home; and

(ii) the person’s right or interest in the person’s principal home gives the person reasonable security of tenure in the home; and

(b) a person who is a member of a couple is a homeowner if:

(i) the person, or the person’s partner, has a right or interest in one residence that is the person’s principal home, or the partner’s principal home, or the principal home of both of them; and

(ii) the person’s right or interest, or the partner’s right or interest, in the home gives the person, or the person’s partner, reasonable security of tenure in the home.

Note: Principal home is defined in section 4.

(2) For subsection (1), the person’s principal home can be premises that:

(a) constitute a retirement village (within the meaning of subsection 12(3) of the Social Security Act); or

(b) are taken to constitute a retirement village (within the meaning of subsection 12(4) of the Social Security Act).

Division 5—Other supplements

Subdivision A—Accommodation supplement

49 Purpose of this Subdivision

For paragraph 44‑28(5)(d) of the Act, this Subdivision specifies other matters relating to the determination of the amount of accommodation supplement payable for a care recipient for a day.

50 Matters on which determination of accommodation supplement amount may be based

The Minister may determine the amount of accommodation supplement, or a method for working out the amount of accommodation supplement, payable for a day for a care recipient who is being provided with residential care (other than respite care) through a residential care service, based on any of the following:

(a) whether the service is:

(i) a newly built residential care service; or

(ii) a significantly refurbished residential care service;

(b) whether the service meets the building requirements specified in Schedule 1 to the Aged Care (Transitional Provisions) Principles 2014;

(c) whether more than 40% of care recipients to whom the service provides residential care, who are both post‑2008 reform residents and relevant residents, are low‑means care recipients or supported residents;

(d) whether more than 40% of relevant residents to whom the service provides residential care are assisted residents, concessional residents, low‑means care recipients or supported residents.

Note 1: Relevant resident is defined in section 4.

Note 2: See section 44‑28 of the Act for other matters that may affect whether accommodation supplement is payable, and the amount of accommodation supplement that may be payable, in respect of a payment period for the care recipient.

51 Application for determination

(1) An approved provider of a residential care service that has been significantly refurbished may apply to the Secretary for a determination under subsection 52(1) in relation to the service.

(2) An approved provider of a residential care service that is proposed to be significantly refurbished may apply to the Secretary for a determination under subsection 53(1) in relation to the service.

(3) An application must:

(a) be in writing; and

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

(4) An application must not relate to more than one residential care service.

Note: An approved provider of more than one residential care service would need to make a separate application in relation to each residential care service.

52 Determination in relation to residential care service that has been significantly refurbished

(1) If the Secretary receives an application under subsection 51(1) from an approved provider of a residential care service, the Secretary may determine, in writing, that the service is a significantly refurbished residential care service.

Note 1: The Secretary must not make a determination under this subsection in certain circumstances (see subsection (2) and section 54).

Note 2: A determination under this subsection is not a legislative instrument (see section 58).

Note 3: A decision to refuse to make a determination under this subsection is a reviewable decision under section 85‑1 of the Act (see section 59 of these principles).

(2) The Secretary must not make a determination under subsection (1) unless the Secretary is satisfied of the following:

(a) the refurbishment was completed on or after 20 April 2012;

(b) the alterations, updates, upgrades or other improvements that have been made to the service have resulted in the service being significantly different in form, quality or functionality after the refurbishment;

(c) a significant proportion of the areas of the service that have been refurbished are areas that are accessible to, and for the use of, care recipients who are being provided with residential care through the service;

(d) the refurbishment provides significant benefits to assisted residents, concessional residents, low‑means care recipients or supported residents who are being provided with residential care through the service;

(e) the relevant costs of the refurbishment will be capitalised for the purposes of the Australian accounting standards because:

(i) the refurbishment consisted of structural improvements; or

(ii) those costs can be depreciated because they relate to fixtures, fittings or anything that can be removed intact;

(f) the refurbishment:

(i) has resulted in at least 40% of the care recipients being provided with residential care through the service having a care recipient’s room that has been significantly refurbished; or

(ii) provides a significant benefit to at least 40% of the care recipients being provided with residential care through the service; or

(iii) consisted of an extension to the service involving an increase of at least 25% of the number of care recipient’s rooms in the service;

(g) the proportion of the total number of care recipient’s rooms in the service that are available after the refurbishment for assisted residents, concessional residents, low‑means care recipients or supported residents is equivalent to, or higher than, the proportion of the total number of care recipient’s rooms in the service that were available before the refurbishment for assisted residents, concessional residents, low‑means care recipients or supported residents;

(h) the refurbishment cost in relation to the service is at least the minimum monetary spend amount in relation to the service.

Note 1: Paragraph (2)(a) is affected by subsection (3).

Note 2: Care recipient’s room is defined in section 4.

Note 3: The refurbishment cost in relation to a residential care service is defined in section 7. The minimum monetary spend amount in relation to a residential care service is defined in section 6.

(3) In deciding whether to be satisfied that the refurbishment was completed on or after 20 April 2012, the Secretary must take into account the following:

(a) if the refurbishment consisted solely of the building of a new accommodation wing—the date when the occupancy certificate (or equivalent) was issued for the new wing;

(b) if the refurbishment did not include the building of a new accommodation wing—the date when all work involved in the refurbishment was completed;

(c) if the refurbishment consisted of the building of a new accommodation wing and the refurbishment of existing parts of the service—the later of:

(i) the date when the occupancy certificate (or equivalent) was issued for the new wing; and

(ii) the date when all work involved in the refurbishment was completed;

(d) any other matter the Secretary considers to be relevant.

Note: Accommodation wing is defined in section 4.

53 Determination in relation to residential care service that is proposed to be significantly refurbished

(1) If the Secretary receives an application under subsection 51(2) from an approved provider of a residential care service, the Secretary may determine, in writing, that the service is a significantly refurbished residential care service, subject to the condition that the determination does not take effect unless:

(a) after the refurbishment is completed, the approved provider gives the Secretary, in a form approved by the Secretary, the information about the refurbished service referred to in subsection (3); and

(b) the Secretary notifies the approved provider under paragraph (5)(b) that he or she is satisfied, having regard to the information given by the approved provider, that the requirements referred to in paragraphs (3)(a) to (h) are met in relation to the refurbished service.

Note 1: The Secretary must not make a determination under this subsection in certain circumstances (see subsection (2) and section 54).

Note 2: A determination under this subsection is not a legislative instrument (see section 58).

Note 3: A decision to refuse to make a determination under this subsection is a reviewable decision under section 85‑1 of the Act (see section 59 of these principles).

(2) The Secretary must not make a determination under subsection (1) unless the Secretary is satisfied of the following:

(a) the proposed refurbishment includes alterations, updates, upgrades or other improvements to the service that will result in the service being significantly different in form, quality or functionality after the refurbishment;

(b) a significant proportion of the areas of the service that are proposed to be refurbished are areas that are accessible to, and for the use of, care recipients who will be provided with residential care through the service;

(c) the proposed refurbishment will provide significant benefits to assisted residents, concessional residents, low‑means care recipients or supported residents who will be provided with residential care through the service;

(d) the relevant costs of the proposed refurbishment will be capitalised for the purposes of the Australian accounting standards because:

(i) the proposed refurbishment will consist of structural improvements; or

(ii) those costs will be able to be depreciated because they will relate to fixtures, fittings or anything that can be removed intact;

(e) the proposed refurbishment:

(i) will result in at least 40% of the care recipients who will be provided with residential care through the service having a care recipient’s room that has been significantly refurbished; or

(ii) will provide a significant benefit to at least 40% of the care recipients who will be provided with residential care through the service; or

(iii) will consist of an extension to the service involving an increase of at least 25% of the number of care recipient’s rooms in the service;

(f) the proportion of the total number of care recipient’s rooms in the service that will be available after the proposed refurbishment for assisted residents, concessional residents, low‑means care recipients or supported residents will be equivalent to, or higher than, the proportion of the total number of care recipient’s rooms in the service that were available before the proposed refurbishment for assisted residents, concessional residents, low‑means care recipients or supported residents;

(g) the refurbishment cost in relation to the service will be at least the minimum monetary spend amount in relation to the service.

Note 1: Care recipient’s room is defined in section 4.

Note 2: The refurbishment cost in relation to a residential care service is defined in section 7. The minimum monetary spend amount in relation to a residential care service is defined in section 6.

(3) For paragraph (1)(a), the information about the refurbished service that the approved provider must give the Secretary is information showing the following:

(a) the proposed refurbishment has been completed;

(e) the relevant costs of the refurbishment will be capitalised for the purposes of the Australian accounting standards because:

(i) the refurbishment consisted of structural improvements; or

(ii) those costs can be depreciated because they relate to fixtures, fittings or anything that can be removed intact;

(f) the refurbishment:

(i) has resulted in at least 40% of the care recipients being provided with residential care through the service having a care recipient’s room that has been significantly refurbished; or

(ii) provides a significant benefit to at least 40% of the care recipients being provided with residential care through the service; or

(iii) consisted of an extension to the service involving an increase of at least 25% of the number of care recipient’s rooms in the service;

(h) the refurbishment cost in relation to the service is at least the minimum monetary spend amount in relation to the service.

Note: The refurbishment cost in relation to a residential care service is defined in section 7. The minimum monetary spend amount in relation to a residential care service is defined in section 6.

(4) If the Secretary needs further information to decide whether to be satisfied as referred to in paragraph (1)(b) in relation to the refurbished service, the Secretary may give the approved provider a notice requesting the approved provider to give the further information within 28 days after receiving the notice.

(5) The Secretary must, within 28 days after receiving information from the approved provider in relation to the refurbished service:

(a) decide whether, having regard to the information, the Secretary is satisfied as referred to in paragraph (1)(b) in relation to the refurbished service; and

(b) notify the approved provider, in writing, of the Secretary’s decision.

Note: A decision under paragraph (5)(a) that the Secretary is not satisfied as referred to in paragraph (1)(b) in relation to the refurbished service is a reviewable decision under section 85‑1 of the Act (see section 59 of these principles).

(6) If the Secretary requested further information under subsection (4), the 28 day period referred to in subsection (5) does not include the period beginning on the day the request was made and ending on the day the information was received.

(7) If the Secretary is satisfied as referred to in paragraph (1)(b) in relation to the refurbished service, the notice given under paragraph (5)(b) must specify the date on which the determination under subsection (1) is to take effect, as provided by subsection 57(2).

54 Circumstances in which Secretary must not make determination

The Secretary must not make a determination under subsection 52(1) or 53(1) in relation to a residential care service if the refurbishment of the service consisted, or the proposed refurbishment of the service will consist, only of:

(a) routine repairs; or

(b) maintenance of premises (such as painting, plumbing, electrical work or gardening); or

(d) fire safety improvements.

55 Requests for further information etc.

(1) If the Secretary needs further information to determine an application made under subsection 51(1) or (2), the Secretary may give the applicant a notice requesting the applicant to give the further information within 28 days after receiving the notice.

(2) The application is taken to be withdrawn if:

(a) further information is requested under subsection (1); and

(b) the information is not given within the period referred to in that subsection.

(3) The notice given under subsection (1) must include a statement setting out the effect of subsection (2).

56 Notification of Secretary’s decision

(1) The Secretary must notify, in writing, the applicant for a determination under subsection 52(1) or 53(1) of the Secretary’s decision on whether to make the determination.

(2) If:

(a) the decision relates to an application made under subsection 51(1) in relation to a residential care service that has been significantly refurbished; and

(b) the decision is to make the determination;

the notice must state the day on which the determination takes effect, as provided by subsection 57(1).

(3) If:

(a) the decision relates to an application made under subsection 51(2) in relation to a residential care service that is proposed to be significantly refurbished; and

(b) the decision is to make the determination;

the notice must include a statement setting out the condition referred to in subsection 53(1) (including the information referred to in subsection 53(3)).

(4) The notice must be given to the applicant within 60 days after the Secretary receives the application.

(5) If the Secretary requested further information under subsection 55(1) to determine the application, the 60 day period referred to in subsection (4) of this section does not include the period beginning on the day the request was made and ending on the day the information was received.

57 Day of effect of determination

(1) A determination under subsection 52(1) in relation to a residential care service that has been significantly refurbished takes effect:

(a) if the refurbishment was completed before 1 July 2014 and the application for the determination was received on or before 31 July 2014—on 1 July 2014; or

(b) in any other case—on the day the application was received.

(2) A determination under subsection 53(1) in relation to a residential care service that is proposed to be significantly refurbished takes effect on the day the Secretary receives the information about the refurbished service referred to in subsection 53(3).

58 Determinations are not legislative instruments

A determination under subsection 52(1) or 53(1) is not a legislative instrument.

59 Reviewable decisions

(1) Each of the following is a reviewable decision under section 85‑1 of the Act:

(a) a decision under subsection 52(1) or 53(1) to refuse to make a determination in relation to a residential care service;

(b) a decision under paragraph 53(5)(a) that the Secretary is not satisfied as referred to in paragraph 53(1)(b) in relation to a refurbished service.

(2) Part 6.1 of the Act applies to a reviewable decision referred to in subsection (1) as if a reference in that Part to this Act included a reference to these principles.

Subdivision B—Hardship supplement

60 Eligibility for hardship supplement—determination by Secretary

(1) For subsection 44‑31(2) of the Act, this section sets out the matters the Secretary must have regard to in deciding whether to determine that a care recipient is eligible for a hardship supplement.

(2) The Secretary must not determine that a care recipient is eligible for a hardship supplement if:

(a) the care recipient’s means have not been assessed in accordance with the Act; or

(b) the value of the care recipient’s assets (worked out under section 44‑26A of the Act and section 47 of these principles) is more than 1.5 times the sum of the annual amount of the following (worked out under the Social Security Act):

(i) the basic age pension amount;

(ii) the pension supplement amount;

(iii) the clean energy supplement amount; or

(i) more than $10 000 in the previous 12 months; or

(ii) more than $30 000 in the previous 5 years.

Note: Basic age pension amount is defined in clause 1 of Schedule 1 to the Act.

(3) For paragraph (2)(b), in determining the value of the care recipient’s assets for this section, unrealisable assets are not to be included.

Note: Unrealisable asset is defined in section 4.

(4) In deciding whether to determine that a care recipient is eligible for a hardship supplement, the Secretary may have regard to the following matters:

(a) the care recipient’s total assessable income (worked out under section 44‑24 of the Act and section 41 of these principles);

(b) whether the amount of income available to the care recipient after expenditure on essential expenses is less than 15% of the basic age pension amount;

(d) the care recipient’s entitlement to income support:

(i) under the Social Security Act; or

(ii) under the Veterans’ Entitlements Act; or

(iii) from any other source;

(e) whether the care recipient has taken steps to obtain information about his or her entitlement to pension, benefit or other income support payments;

(f) whether the care recipient has access to financial assistance:

(i) under section 1129 of the Social Security Act (relating to access to financial hardship rules for pensions); or

(ii) under the pension loans scheme under Division 4 of Part 3.12 of the Social Security Act; or

(iii) from any other source;

(g) whether any income of the care recipient is income that he or she does not reasonably have access to;

(h) whether there is a charge on the care recipient’s income over which the payment of resident fees cannot practically take precedence;

(i) whether the care recipient is in Australia on a temporary basis;

(j) any other matters the Secretary considers relevant.

61 Meaning of essential expenses for a recipient of residential care

(1) Essential expenses, for a recipient of residential care, include expenditure on any of the following:

(a) resident fees;

(b) if the partner or a dependent child of the care recipient lives in the care recipient’s principal home—rent or mortgage for the principal home;

(d) ambulance cover;

(e) medical expenses, including expenses incurred under a health professional’s direction;

(f) transport costs to attend medical appointments;

(g) dental care;

(h) prescription glasses (one pair per year) or contact lenses;

(i) artificial limbs, eyes or hearing aids for amounts that are not already covered by other government schemes or programs;

(j) wheelchair and mobility aids;

(k) if the care recipient is paying a funeral plan on a periodic basis—the funeral plan.

(2) However, essential expenses, for a recipient of residential care, do not include expenditure on any of the following:

(a) extra service fees for a place in a residential care service that has extra service status;

(b) amounts paid for additional care and services agreed as mentioned in paragraph 56‑1(e) of the Act;

(c) amounts spent by a person, authorised to act on the care recipient’s behalf, other than for the benefit of the care recipient.

62 Circumstances in which Secretary may revoke financial hardship determination

For subsection 44‑32(1) of the Act, the Secretary may revoke a determination that a care recipient is eligible for a hardship supplement if:

(a) the circumstances of the care recipient have changed; and

(b) the Secretary is satisfied that paying a daily amount of resident fees that is more than the amount specified in the determination would not cause the person financial hardship.

Example: For paragraph (a), a person’s circumstances may change if assets of the person that were unrealisable assets are no longer assets of that kind.

Subdivision C—Viability supplement

63 Viability supplement

For paragraph 44‑27(1)(c) of the Act, the viability supplement for a care recipient in respect of a payment period is the sum of all the viability 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 residential care service was:

(i) a 1997 scheme service; or

(ii) a 2001 scheme service; or

(iii) a 2005 scheme service; or

(iv) a 2017 scheme service; and

(c) the residential care service, or a distinct part of the residential care service, does not have extra service status.

64 Meaning of 1997 scheme service

(1) A residential care service is a 1997 scheme service on a day if the service:

(a) meets the requirements of subsection (2); and

(b) does not meet the requirements of subsection 66(6) or 66A(6).

(2) A residential care service meets the requirements of this subsection if:

(a) the service was in operation on 31 December 2004, and, on that date, the point score of the service would have been at least 60 points, under the scoring system set out in the table in this subsection; and

(b) on 1 January 2005, the point score of the service was either:

(i) less than 50 points, under the scoring system set out in the table in subsection 66(2); or

(ii) if the amount of viability supplement payable in accordance with a determination made under subsection 44‑27(3) of the Act, for a day in respect of a care recipient to whom care provided through the service as a 2005 scheme service was less than the amount of viability supplement payable in respect of the care recipient for the day if the service was taken to be a 1997 scheme service—at least 50 points, under the scoring system set out in the table in subsection 66(2).

1997 scheme services—scoring
Item	Criterion	Points
1	Location: (a) remote zone; (b) other rural area; (c) small rural centre; (d) large rural centre.	40 30 20 10
2	Beds: (a) less than 30; (b) less than 16.	20 30
3	Service not co‑located with another service and unable to co‑locate.	20
4	Supported, concessional or assisted residents: (a) over 70%; (b) 50% to 70%.	20 10
5	Caters largely for care recipients who are people with special needs (other than people with special needs only because they live in a rural or remote area or are financially or socially disadvantaged).	10

(3) For paragraph (2)(a), for an item of the table in subsection (2) that has paragraphs, points may be scored under only one paragraph in the item.

(4) For item 1 of the table in subsection (2), a location of a particular kind is a statistical local area of that kind defined in the “Rural, Remote and Metropolitan Area Classification”, 1991 Census Edition, published by the Australian Government Publishing Service, as in force on November 1994.

(5) For item 3 of the table in subsection (2), a residential care service is taken to be unable to co‑locate with another aged care service if:

(a) the service is not on the same site as, or an adjoining site to, another residential care service or a multi‑purpose service; or

(b) the service is on the same site as, or an adjoining site to, another residential care service or multi‑purpose service but the total of the places allocated for the provision of residential care and flexible care equivalent to residential care on the same or adjoining site is less than 45; or

(d) for a residential care service in a remote zone—the service is not more than 25 kilometres from the nearest residential care service, but the total number of places in both services is less than 30; or

(e) for a residential care service not in a remote zone—the service is not more than 25 kilometres from the nearest residential care service, but the total number of places in both services is less than 16.

Note: Multi‑purpose service is defined in section 4.

65 Meaning of 2001 scheme service

(1) A residential care service is a 2001 scheme service on a day if, on that day, the service:

(a) meets the requirements of subsection (2) or (3); and

(b) does not meet the requirements of subsection 66(7) or 66A(7).

(2) A residential care service meets the requirements of this subsection if:

(a) the service was in operation on 31 December 2004, and, on that date, the point score of the service would have been at least 40 points, under the scoring system set out in the table in this subsection; and

(b) on 1 January 2005, the point score of the service was either:

(i) less than 50 points, under the scoring system set out in the table in subsection 66(2); or

(ii) if the amount of viability supplement payable in accordance with the determination made under subsection 44‑27(3) of the Act for a day in respect of a care recipient to whom care provided through the service as a 2005 scheme service was less than the amount of viability supplement payable in respect of the care recipient for the day if the service was taken to be a 2001 scheme service—at least 50 points, under the scoring system set out in the table in subsection 66(2).

2001 scheme services—scoring
Item	Criterion	Points
1	Location: (a) very remote location; (b) remote location; (c) moderately accessible location; (d) accessible location; (e) highly accessible location.	60 50 40 30 0
2	Places: (a) less than 20; (b) more than 19 but less than 30; (c) more than 29 but less than 45.	30 20 10
3	More than 50% of care recipients are people with special needs (other than people who are people with special needs only because they live in rural or remote areas or they are financially or socially disadvantaged).	10

Note: Accessible location, highly accessible location, moderately accessible location, remote location and very remote location are defined in section 4.

(3) A residential care service meets the requirements of this subsection if:

(a) the service commenced operating on or after 1 January 2005 and before 1 July 2005; and

(b) on the day that the service commenced operating, the point score of the service was at least 40 points, under the scoring system set out in the table in subsection (2); and

(i) less than 50 points, under the scoring system set out in the table in subsection 66(2); or

(ii) if the amount of viability supplement payable in accordance with a determination made under subsection 44‑27(3) of the Act, for that day in respect of a care recipient to whom care was provided through the service as a 2005 scheme service was less than the amount of viability supplement payable in respect of the care recipient for that day if the service was taken to be a 2001 scheme service—at least 50 points, under the scoring system set out in the table in subsection 66(2).

66 Meaning of 2005 scheme service

(1) A residential care service is a 2005 scheme service on a day if, on that day, the service:

(a) meets the requirements of subsection (2), (6) or (7); and

(b) does not meet the requirements of subsection 66A(8).

(2) A residential care service meets the requirements of this subsection if, on or after 1 January 2005, the service:

(a) is not a 1997 scheme service or a 2001 scheme service; and

(b) scores at least 50 points, worked out as follows:

2005 scheme service points calculator

Step 1. Work out the number of points (if any) applicable to the service in respect of its location under subsection (3).

Step 2. Add an additional 15 points if the service is in a very remote location, a remote location or a moderately accessible location, and more than 50% of care recipients of the service (other than care recipients receiving respite care) are classified at a classification level that does not include any of the following:

(a) high ADL domain category;

(b) high CHC domain category;

(d) a medium domain category in at least 2 domains.

Step 3. Add an additional 60 points if subsection (4) applies to the service (care for homeless people, people from Aboriginal and Torres Strait Islander communities, or both).

Step 4. If the total of steps 1, 2 and 3 is more than 65, reduce the total to 65 points.

Step 5. Add the number of points (if any) applicable to the service in respect of its number of places that are occupied under subsection (5).

Step 6. Add an additional 5 points if more than 50% of care recipients are people with special needs (other than people who are people with special needs only because they live in rural or remote areas or are financially or socially disadvantaged).

The result is the points score for the 2005 scheme service.

Note 1: For the classification of care recipients mentioned in step 2, see the Classification Principles.

Note 2: Moderately accessible location, remote location and very remote location are defined in section 4.

(3) For step 1 of the points calculator in subsection (2), the number of points applicable to the service in respect of its location is calculated using the scoring system in the following table:

2005 scheme services—locations
Item	Location	Points
1	Very remote location	65
2	Remote location	55
3	Moderately accessible location	40
4	Accessible location	30
5	Highly accessible location	0

Note: Accessible location, highly accessible location, moderately accessible location, remote location and very remote location are defined in section 4.

(4) For step 3 of the points calculator in subsection (2), this subsection applies to the service if more than 50% of care recipients of the service (other than care recipients receiving respite care) have been appraised using either appraisal tool A or appraisal tool B in Schedule 2 as demonstrating complex behavioural needs and social disadvantage associated with their background as a homeless person or their background as a person from an Aboriginal or Torres Strait Islander community, or both, and:

(a) the places allocated in respect of the residential care service are subject to a condition of allocation under section 14‑5 of the Act relating to the care of people with a background as homeless persons or persons from an Aboriginal or Torres Strait Islander community; or

(b) the approved provider of the residential care service or its key personnel have demonstrated experience in providing, or the capacity to provide, specialist services for such persons, including:

(i) programs and interventions to manage complex behavioural needs; or

(ii) programs to promote social engagement and participation; or

(iii) any other relevant services that the Secretary considers appropriate.

(5) For step 5 of the points calculator in subsection (2), the number of points applicable to the service in respect of its number of places that are occupied is calculated using the scoring system in the following table:

2005 scheme service—occupied places
Item	Occupied places	Points
1	Less than 20	30
2	More than 19 but less than 25	25
3	More than 24 but less than 30	20
4	More than 29 but less than 35	15
5	More than 34 but less than 40	10
6	More than 39 but less than 45	5

(6) A residential care service meets the requirements of this subsection if the service was a 1997 scheme service and, on at least 1 day on or after 1 January 2005:

(a) the service scores at least 50 points, under the scoring system set out in the points calculator in subsection (2); and

(b) the amount of viability supplement payable in accordance with a determination made under subsection 44‑27(3) of the Act, for a day in respect of a care recipient to whom care is provided through the service as a 2005 scheme service is the same as or greater than the amount of viability supplement payable in respect of the care recipient for the day if the service was taken to be a 1997 scheme service.

(7) A residential care service meets the requirements of this subsection if the service was a 2001 scheme service and, on at least 1 day on or after 1 January 2005:

(a) the service scores at least 50 points, under the scoring system set out in the points calculator in subsection (2); and

66A Meaning of 2017 scheme service

(1) A residential care service is a 2017 scheme service on a day if, on that day, the service meets the requirements of subsection (2), (6), (7) or (8).

(2) A residential care service meets the requirements of this subsection if, on or after 1 January 2017, the service:

(a) is not a 1997 scheme service, a 2001 scheme service or a 2005 scheme service; and

(b) scores at least 50 points, worked out as follows:

2017 scheme service points calculator

Step 1. Work out the number of points (if any) applicable to the service in respect of its street address under subsection (3).

Step 2. Add an additional 15 points if the classification for the street address of the service is MMM 5, MMM 6 or MMM 7, and more than 50% of care recipients of the service (other than care recipients receiving respite care) are classified at a classification level that does not include any of the following domain categories:

(a) high ADL domain category;

(b) high CHC domain category;

(d) a medium domain category in at least 2 domains.

Step 3. Add an additional 60 points if subsection (4) applies to the service (care for homeless people, people from Aboriginal and Torres Strait Islander communities, or both).

Step 4. If the total of steps 1, 2 and 3 is more than 65, reduce the total to 65 points.

Step 5. Add the number of points (if any) applicable to the service in respect of its number of places that are occupied under subsection (5).

The result is the points score for the 2017 scheme service.

Note 1: In 2017, the Modified Monash Model classification for a street address was available at http://www.doctorconnect.gov.au.

Note 2: For the classification of care recipients mentioned in step 2, see the Classification Principles.

(3) For step 1 of the points calculator in subsection (2), the number of points applicable to the service in respect of its street address is calculated using the scoring system in the following table:

2017 scheme services—street addresses
Item	Modified Monash Model classification	Points
1	MMM 1	0
2	MMM 2	0
3	MMM 3	0
4	MMM 4	30
5	MMM 5	40
6	MMM 6	55
7	MMM 7	65

Note: In 2017, the Modified Monash Model classification for a street address was available at http://www.doctorconnect.gov.au.

(b) the approved provider of the residential care service or its key personnel have demonstrated experience in providing, or the capacity to provide, specialist services for such persons, including:

(i) programs and interventions to manage complex behavioural needs; or

(ii) programs to promote social engagement and participation; or

(iii) any other relevant services that the Secretary considers appropriate.

2017 scheme service—occupied places
Item	Occupied places	Points
1	Less than 20	30
2	More than 19 but less than 25	25
3	More than 24 but less than 30	20
4	More than 29 but less than 35	15
5	More than 34 but less than 40	10
6	More than 39 but less than 45	5

(6) A residential care service meets the requirements of this subsection if the service was a 1997 scheme service and, on at least 1 day on or after 1 January 2017:

(a) the service scores at least 50 points under the scoring system set out in the points calculator in subsection (2); and

(b) the amount of viability supplement payable in accordance with a determination made under subsection 44‑27(3) of the Act, for a day in respect of a care recipient to whom care is provided through the service as a 2017 scheme service is the same as or greater than the amount of viability supplement payable in respect of the care recipient for the day if the service was taken to be a 1997 scheme service.

(7) A residential care service meets the requirements of this subsection if the service was a 2001 scheme service and, on at least 1 day on or after 1 January 2017:

(a) the service scores at least 50 points under the scoring system set out in the points calculator in subsection (2); and

(b) the amount of viability supplement payable in accordance with a determination made under subsection 44‑27(3) of the Act, for a day in respect of a care recipient to whom care is provided through the service as a 2017 scheme service is the same as or greater than the amount of viability supplement payable in respect of the care recipient for the day if the service was taken to be a 2001 scheme service.

(8) A residential care service meets the requirements of this subsection if the service was a 2005 scheme service and, on at least 1 day on or after 1 January 2017:

(a) the service scores at least 50 points under the scoring system set out in the points calculator in subsection (2); and

(b) the amount of viability supplement payable in accordance with a determination made under subsection 44‑27(3) of the Act, for a day in respect of a care recipient to whom care is provided through the service as a 2017 scheme service is the same as or greater than the amount of viability supplement payable in respect of the care recipient for the day if the service was taken to be a 2005 scheme service.

Subdivision D—Veterans’ supplement

67 Veterans’ supplement

For paragraph 44‑27(1)(c) of the Act, the veterans’ supplement for a care recipient in respect of a payment period is the sum of all the veterans’ supplements for the days during the period on which:

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

(b) the care recipient was eligible for a veterans’ supplement.

68 Eligibility for veterans’ supplement

A care recipient is eligible for a veterans’ supplement on a particular day if:

(a) on that day, the care recipient is a veteran with an accepted mental health condition; and

(b) the care recipient has before, on or after that day, authorised either, or both, of the following to disclose to the approved provider that the care recipient is a veteran with an accepted mental health condition:

(i) the Secretary of the Department administered by the Minister administering the Veterans’ Entitlements Act;

(ii) the Secretary of the Department administered by the Minister administering the Human Services (Centrelink) Act 1997.

Note: Accepted mental health condition and veteran are defined in section 4.

Subdivision E—Homeless supplement

69 Homeless supplement

For paragraph 44‑27(1)(c) of the Act, the homeless supplement for a care recipient in respect of a payment period is the sum of all the homeless 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 service met the requirements for eligibility under section 70.

70 Eligibility for homeless supplement

A residential care service meets the requirements for eligibility for a homeless supplement on a particular day if:

(a) more than 50% of care recipients provided with residential care (other than respite care) through the service have been appraised using appraisal tool A in subclause 2(1) of Schedule 2 as demonstrating complex behavioural needs and social disadvantage associated with their background as a homeless person; and

(b) either:

(i) the allocation of places to the approved provider in respect of the service was made (under section 14‑5 of the Act) subject to conditions relating to care of people with a background as homeless persons; or

(ii) the approved provider or its key personnel have demonstrated experience in providing, or the capacity to provide, specialist services for such persons, including programs and interventions to manage complex behavioural needs, or programs to promote social engagement and participation.

Subdivision F—COVID‑19 support supplement (for COVID‑19 support payment periods)

70AA COVID‑19 support supplement (for COVID‑19 support payment periods)

For the purposes of paragraph 44‑27(1)(c) of the Act, the COVID‑19 support supplement for a care recipient in respect of a COVID‑19 support payment period is the sum of all the COVID‑19 support 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 COVID‑19 support supplement under section 70AB.

70AB Eligibility for COVID‑19 support supplement

(1) A care recipient is eligible for a COVID‑19 support supplement on a particular day if, on that day, the care recipient is being provided with residential care other than as respite care.

(2) A care recipient is eligible for a COVID‑19 support supplement on a particular day if, on that day:

(a) the care recipient is being provided with residential care as respite care; and

(b) under Division 2 of Part 1 of Chapter 2 of the Aged Care (Subsidy, Fees and Payments) Determination 2014, the basic subsidy amount for the day for the care recipient is not nil.

Subdivision G—Residential care support supplement (for February 2021 payment period)

70AC Residential care support supplement (for February 2021 payment period)

For the purposes of paragraph 44‑27(1)(c) of the Act, the residential care support supplement for a care recipient in respect of the payment period beginning on 1 February 2021 is the sum of all the residential care support 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 residential care support supplement under section 70AD.

70AD Eligibility for residential care support supplement

(1) A care recipient is eligible for a residential care support supplement on a particular day if, on that day, the care recipient is being provided with residential care other than as respite care.

(2) A care recipient is eligible for a residential care support supplement on a particular day if, on that day:

(a) the care recipient is being provided with residential care as respite care; and

(b) under Division 2 of Part 1 of Chapter 2 of the Aged Care (Subsidy, Fees and Payments) Determination 2014, the basic subsidy amount for the day for the care recipient is not nil.

Subdivision H—2021 basic daily fee supplement (for payment periods July 2021 to September 2022)

70AE 2021 basic daily fee supplement (for payment periods July 2021 to September 2022)

For the purposes of paragraph 44‑27(1)(c) of the Act, the 2021 basic daily fee supplement for a care recipient in respect of a payment period beginning on or after 1 July 2021 and before 1 October 2022 is the sum of all the 2021 basic daily fee 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 2021 basic daily fee supplement under section 70AF; and

(c) the approved provider of the service met the requirements for eligibility for a 2021 basic daily fee supplement under section 70AG.

70AF Eligibility for 2021 basic daily fee supplement—care recipients

(1) A care recipient is eligible for a 2021 basic daily fee supplement on a particular day if, on that day, the care recipient is being provided with residential care other than as respite care.

(2) A care recipient is eligible for a 2021 basic daily fee supplement on a particular day if, on that day:

(a) the care recipient is being provided with residential care as respite care; and

(b) under Division 2 of Part 1 of Chapter 2 of the Aged Care (Subsidy, Fees and Payments) Determination 2014, the basic subsidy amount for the day for the care recipient is not nil.

70AG Eligibility for 2021 basic daily fee supplement—approved providers

Notice to Secretary

(1) An approved provider may give the Secretary a notice in accordance with subsection (2), but may give such a notice only once.

(2) The notice must:

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

(b) include an undertaking to give the Secretary reports in accordance with subsection (10) relating to the quarter in which the notice is given and each subsequent quarter; and

Eligibility based on giving notice—initial quarter

(3) If the notice is given on or before the 21st day of a quarter (the initial quarter), the approved provider meets the requirements for eligibility for a 2021 basic daily fee supplement on each day between the first day of the initial quarter and:

(a) if paragraph (b) does not apply—the 21st day of the following quarter; or

(b) if the initial quarter begins on 1 July 2022—30 September 2022.

(4) If the notice is given after the 21st day of a quarter (the initial quarter) and before the end of the initial quarter, the approved provider meets the requirements for eligibility for a 2021 basic daily fee supplement on each day between the day the notice is given and:

(a) if paragraph (b) does not apply—the 21st day of the following quarter; or

(b) if the initial quarter begins on 1 July 2022—30 September 2022.

Eligibility based on giving reports—later quarters

(5) Subsections (6) to (9) apply to an approved provider that has given a notice in accordance with subsection (2) in a quarter.

(6) Subject to subsection (7), if, on or before the 21st day of a later quarter (the current quarter), the approved provider gives the Secretary a report relating to the previous quarter in accordance with subsection (10), the approved provider meets the requirements for eligibility for a 2021 basic daily fee supplement on each day between the 22nd day of the current quarter and the 21st day of the following quarter.

(7) If, on or before 21 July 2022, the approved provider gives the Secretary a report relating to the quarter beginning on 1 April 2022 in accordance with subsection (10), the approved provider meets the requirements for eligibility for a 2021 basic daily fee supplement on each day between 22 July 2022 and 30 September 2022.

(8) Subject to subsection (9), if, after the 21st day of a later quarter (the current quarter) and on or before the 21st day of the immediately following quarter (the following quarter), the approved provider gives the Secretary a report relating to the quarter immediately before the current quarter in accordance with subsection (10), the approved provider meets the requirements for eligibility for a 2021 basic daily fee supplement on each day between the day the report is given and the 21st day of the following quarter.

(9) If, after 21 July 2022 and on or before 30 September 2022, the approved provider gives the Secretary a report relating to the quarter beginning on 1 April 2022 in accordance with subsection (10), the approved provider meets the requirements for eligibility for a 2021 basic daily fee supplement on each day between the day the report is given and 30 September 2022.

Reports

(10) For the purposes of paragraph (2)(b) and subsections (6) to (9), a report relating to a quarter must:

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

(b) include the information required by the approved form about the quality and quantity of daily living services, with a focus on food and nutrition, provided in the quarter by each residential care service through which the approved provider provides residential care.

Meaning of quarter

(11) In this section:

quarter means a quarter beginning on 1 July 2021, 1 October 2021, 1 January 2022, 1 April 2022 or 1 July 2022.

Chapter 3—Home care subsidy

Part 1A—Meaning of home care

70A Purpose of this Part

For paragraph 45‑3(2)(b) of the Act, this Part specifies care that does not constitute home care.

70B Care that does not constitute home care

For paragraph 45‑3(2)(b) of the Act, flexible care in the form of short‑term restorative care does not constitute home care.

Part 1—Who is eligible for home care subsidy?

Division 1—Purpose of this Part

71 Purpose of this Part

For Division 46 of the Act, this Part specifies requirements relating to the suspension, on a temporary basis, of the provision of home care to a care recipient in accordance with a home care agreement.

Division 2—Suspension of home care

72 Suspension of home care

(1) For subsection 46‑2(3) of the Act, this section specifies requirements relating to the suspension, on a temporary basis, of the provision of home care to a care recipient in accordance with a home care agreement.

(2) The home care agreement, as in force on the date specified in the request by the care recipient to suspend the provision of home care (the commencement day), is taken to remain in force during the period for which the provision of home care is suspended (the suspension period).

(3) The care recipient is taken to have been provided with home care, as required by the home care agreement, on each day of the suspension period.

(4) The suspension period:

(a) includes the commencement day; but

(b) does not include the day on which the provision of home care to the care recipient recommences.

Part 1B—On what basis is home care subsidy paid?

Division 1—Purpose of this Part

72A Purpose of this Part

For the purposes of Division 47 of the Act, this Part specifies the period within which an approved provider may vary a claim made in respect of a payment period for home care subsidy.

Division 2—Variation of claims for home care subsidy

72B Variation of claims for home care subsidy

(1) For the purposes of subparagraph 47‑4A(1)(a)(i) of the Act, this section provides for the period within which an approved provider may vary a claim made in respect of a payment period.

(2) This section applies to a variation to the extent that it relates to a care recipient to whom the approved provider has ceased to provide home care.

(3) The period is 70 days after:

(a) if Subdivision D of Division 3A of Part 3 of the User Rights Principles 2014 applies—the home care cessation day (within the meaning of section 21D of those Principles); or

(b) if Subdivision F of Division 3A of Part 3 of those Principles applies—the home care service cessation day (within the meaning of section 21JA of those Principles).

Part 2—What is the amount of home care subsidy?

Division 1—Purpose of this Part

73 Purpose of this Part

For the purposes of Division 48 of the Act, this Part sets out matters in relation to the amount of home care subsidy payable to an approved provider for a home care service in respect of a payment period, including the following:

(a) primary supplements for care recipients (Division 2);

(b) reductions in subsidy for care recipients (Division 3);

(d) matters relating to working out the shortfall amount for care recipients (Division 5);

(e) matters relating to home care accounts for care recipients (Division 6).

Division 2—Primary supplements

Subdivision A—Oxygen supplement

74 Oxygen supplement

(1) The oxygen supplement for a care recipient in respect of a payment period is the sum of all the oxygen supplements for the days during the period on which:

(a) there was in force a home care agreement under which the care recipient was to be provided with home care through the home care service in question (whether or not home care was provided); and

(b) a determination was in force under subsection 75(3) in relation to the care recipient; and

(c) the home care provided through the home care service included providing oxygen to the care recipient in circumstances specified in section 76.

(2) However, a day is to be disregarded for the purposes of subsection (1) if:

(a) more than one approved provider is eligible for home care subsidy for the day for the care recipient; and

(b) the approved provider for the home care service in question was not the first of the approved providers referred to in paragraph (a) to have entered into a home care agreement with the care recipient.

75 Eligibility for oxygen supplement—determination by Secretary

(1) An approved provider that is providing, or is to provide, home care to a care recipient may apply to the Secretary for a determination under subsection (3) that the care recipient is eligible for an oxygen supplement.

(2) The application must:

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

(b) include the information, and be accompanied by any documents, specified by the approved form.

(3) If the Secretary receives an application from an approved provider in respect of the care recipient under subsection (1), the Secretary may determine that the care recipient is eligible for an oxygen supplement.

Note: A decision to refuse to make a determination is a reviewable decision under section 77.

(4) A determination made under subsection (3) is not a legislative instrument.

(5) The Secretary must notify the applicant, in writing, of the Secretary’s decision on whether to make the determination. The notice must be given within 28 days after the decision is made.

76 Circumstances relating to provision of oxygen

For paragraph 74(1)(c), the circumstances for the provision of oxygen are as follows:

(a) the materials and equipment used by the home care service to provide the oxygen must be hired, temporarily obtained or owned by the home care service;

(b) the oxygen must not be provided:

(i) because of a medical emergency; or

(ii) on a short‑term or episodic basis;

(c) a medical practitioner must have certified, in writing, that the care recipient has a continual need for the provision of oxygen;

(d) the oxygen must be provided in the most economical way available, taking into account the medical needs of the care recipient.

77 Reviewable decision

(1) A decision under subsection 75(3) to refuse to make a determination that a care recipient is eligible for an oxygen supplement is a reviewable decision under section 85‑1 of the Act.

(2) Part 6.1 of the Act applies to a reviewable decision mentioned in subsection (1) as if a reference in that Part to this Act included a reference to these principles.

Subdivision B—Enteral feeding supplement

78 Enteral feeding supplement

(1) The enteral feeding supplement for a care recipient in respect of a payment period is the sum of all the enteral feeding supplements for the days during the period on which:

(a) there was in force a home care agreement under which the care recipient was to be provided with home care through the home care service in question (whether or not home care was provided); and

(b) a determination was in force under subsection 79(3) in relation to the care recipient; and

(c) the home care provided through the home care service included providing enteral feeding to the care recipient in circumstances specified in section 80.

(2) However, a day is to be disregarded for the purposes of subsection (1) if:

(a) more than one approved provider is eligible for home care subsidy for the day for the care recipient; and

79 Eligibility for enteral feeding supplement—determination by Secretary

(2) The application must:

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

(b) include the information, and be accompanied by any documents, specified by the approved form.

Note: A decision to refuse to make a determination is a reviewable decision under section 81.

(4) A determination made under subsection (3) is not a legislative instrument.

(5) The Secretary must notify the applicant, in writing, of the Secretary’s decision on whether to make the determination. The notice must be given within 28 days after the decision is made.

80 Circumstances relating to provision of enteral feeding

For paragraph 78(1)(c), the circumstances for the provision of enteral feeding are as follows:

(a) a medical practitioner must have certified, in writing, that the care recipient has a medical need for enteral feeding;

(c) a medical practitioner or dietician must have certified, in writing, that the dietary formula is a nutritionally complete formula;

(d) the enteral feeding must not be intermittent or supplementary enteral feeding given in addition to oral feeding;

(e) the enteral feeding must be provided in the most economical way available, taking into account the medical needs of the care recipient.

81 Reviewable decision

(1) A decision under subsection 79(3) to refuse to make a determination that a care recipient is eligible for an enteral feeding supplement is a reviewable decision under section 85‑1 of the Act.

(2) Part 6.1 of the Act applies to a reviewable decision mentioned in subsection (1) as if a reference in that Part to this Act included a reference to these principles.

Subdivision C—Dementia and cognition supplement

82 Dementia and cognition supplement

(1) The dementia and cognition supplement for a care recipient in respect of a payment period is the sum of all dementia and cognition supplements for the days during the period on which:

(a) there was in force a home care agreement under which the care recipient was to be provided with home care through the home care service in question (whether or not home care was provided); and

(b) the care recipient was eligible for a dementia and cognition supplement.

(2) However, a day is to be disregarded for the purposes of subsection (1) if:

(a) more than one approved provider is eligible for home care subsidy for the day for the care recipient; and

83 Eligibility for dementia and cognition supplement

(1) A care recipient is eligible for a dementia and cognition supplement on a particular day if, on that day:

(a) subsection (2), (3), (4) or (5) applied to the care recipient; and

(b) if subsection (2), (3) or (4) applied to the care recipient—the approved provider had a record of the assessment mentioned in the relevant subsection; and

(2) This subsection applies to a care recipient on a day if:

(a) the care recipient has been assessed in accordance with the Psychogeriatric Assessment Scales; and

(b) the assessment was conducted by a registered nurse, clinical nurse consultant, nurse practitioner, clinical psychologist or medical practitioner; and

Note: Psychogeriatric Assessment Scales is defined in section 4.

(3) This subsection applies to a care recipient on a day if:

(a) the care recipient is from a culturally or linguistically diverse background; and

(b) the care recipient has been assessed in accordance with the Rowland Universal Dementia Assessment Scale; and

(c) the assessment was conducted by a registered nurse, clinical nurse consultant, nurse practitioner, clinical psychologist or medical practitioner; and

(d) the assessment resulted in a score of 22 or less.

Note: Rowland Universal Dementia Assessment Scale is defined in section 4.

(4) This subsection applies to a care recipient on a day if:

(a) the care recipient is an Aboriginal person, or a Torres Strait Islander, who lives in a rural or remote area; and

(b) the care recipient has been assessed in accordance with the KICA‑Cog; and

(i) a registered nurse, clinical nurse consultant, nurse practitioner or medical practitioner; or

(ii) another health practitioner trained in assessing a person in accordance with the KICA‑Cog; and

(d) the assessment resulted in a score of 33 or less.

Note: KICA‑Cog is defined in section 4.

(5) This subsection applies to a care recipient on a day if, immediately before 1 August 2013, the care recipient was receiving care, or was approved to receive care, in respect of a place allocated for the provision of flexible care in the form called extended aged care at home—dementia.

Subdivision D—Veterans’ supplement

84 Veterans’ supplement

(1) The veterans’ supplement for a care recipient in respect of a payment period is the sum of all the veterans’ supplements for the days during the period on which:

(a) there was in force a home care agreement under which the care recipient was to be provided with home care through the home care service in question (whether or not home care was provided); and

(b) the care recipient was eligible for a veterans’ supplement.

(2) However, a day is to be disregarded for the purposes of subsection (1) if:

(a) more than one approved provider is eligible for home care subsidy for the day for the care recipient; and

85 Eligibility for veterans’ supplement

A care recipient is eligible for a veterans’ supplement on a particular day if:

(a) on that day, the care recipient is a veteran with an accepted mental health condition; and

(i) the Secretary of the Department administered by the Minister administering the Veterans’ Entitlements Act;

(ii) the Secretary of the Department administered by the Minister administering the Human Services (Centrelink) Act 1997.

Note: Accepted mental health condition and veteran are defined in section 4.

Division 3—Reductions in subsidy

Subdivision A—Compensation payment reduction

86 Determination by Secretary if judgment or settlement does not, or does not adequately, take into account future costs of home care

(1) For subsections 48‑5(5) and (6) of the Act, in making a determination in respect of a judgment or settlement entitling a care recipient to compensation, the Secretary must take into account the following matters:

(a) the amount of the judgment or settlement;

(b) for a judgment—the components stated in the judgment and the amount stated for each component;

(d) the amounts spent on home care at the time of the judgment or settlement.

Note: For paragraph (1)(b), examples of the components of a judgment include the following:

(a) loss of income;

(b) costs of future care.

(2) The Secretary may also take into account any other matters the Secretary considers relevant, including the following:

(a) the amounts that are likely to be paid to, or withheld by, other government agencies because of the judgment or settlement;

(b) the amounts spent on care (other than home care) at the time of the judgment or settlement;

(d) other costs of care for which the care recipient is likely to be liable;

(e) other reasonable amounts, not related to care, that the care recipient:

(i) has spent at the time of the judgment or settlement; or

(ii) is likely to be liable for.

87 Determination by Secretary if compensation information not given on request

(1) For subsection 48‑6(5) of the Act, in determining compensation payment reductions for a care recipient if information or a document requested about a judgment, settlement or reimbursement arrangement is not produced or given, the Secretary must take into account the amounts spent on home care at the time of the judgment, settlement or reimbursement arrangement.

(2) The Secretary may also take into account any other matters the Secretary considers relevant, including the following:

(a) the amount of the judgment, settlement or reimbursement arrangement;

(b) for a judgment—the components stated in the judgment and the amount stated for each component;

(d) the amounts that are likely to be paid to or withheld by other government agencies because of the judgment, settlement or reimbursement arrangement;

(e) the amounts spent on care (other than home care) at the time of the judgment, settlement or reimbursement arrangement;

(f) the likely cost of home care for the care recipient;

(g) other costs of care for which the care recipient is likely to be liable;

(h) other amounts, not related to care, that the care recipient:

(i) had spent at the time of the judgment, settlement or reimbursement arrangement; or

(ii) is likely to be liable for.

Subdivision B—Care subsidy reduction—general

88 Classes of people for whom care subsidy reduction is taken to be zero

(1) For paragraph 48‑8(1)(b) of the Act, the classes of persons for whom a care subsidy reduction, in respect of a care recipient being provided with home care through a home care service, is taken to be zero are the following:

(a) care recipients who stop being provided with home care (without being provided with other home care), or who die, before the approved provider is informed of the person’s care subsidy reduction (if any);

(b) care recipients who are not, within 6 months of receiving home care, informed of the care recipient’s care subsidy reduction (if any);

(d) care recipients who are described in paragraph 85(4)(b) of the Veterans’ Entitlements Act (which describes former prisoners of war);

(e) care recipients for whom the care subsidy reduction is worked out at less than $1.

(2) If the care recipient is included in the class of persons mentioned in paragraph (1)(b), the care recipient is included in that class from the day the care recipient starts being provided with home care through the home care service until the day the care recipient is informed of the care recipient’s care subsidy reduction.

89 Matters to which Secretary must have regard in deciding whether to determine if care subsidy reduction is to be taken to be zero

(1) For subsection 48‑8(4) of the Act, in deciding whether to determine that the care subsidy reduction in respect of a care recipient is to be taken to be zero, the Secretary must have regard to the following matters:

(a) the care recipient’s total assessable income (worked out in accordance with section 44‑24 of the Act and section 90 of these principles) and assets (worked out under section 44‑26A of the Act and section 47 of these principles);

(b) the care recipient’s financial arrangements;

(i) under the Social Security Act; or

(ii) under the Veterans’ Entitlements Act; or

(iii) from any other source;

(d) whether the care recipient has taken steps to obtain information about his or her entitlement to pension, benefit or other income support payments;

(e) whether the care recipient has access to financial assistance:

(i) under section 1129 of the Social Security Act (relating to access to financial hardship rules for pensions); or

(ii) under the pension loans scheme under Division 4 of Part 3.12 of the Social Security Act; or

(iii) from any other source;

(f) whether any income of the care recipient is income that the care recipient does not reasonably have access to;

(g) whether there is a charge on the care recipient’s income over which the payment of home care fees cannot practically take precedence;

(h) whether any assets of the care recipient are unrealisable assets;

(i) whether the care recipient is in Australia on a temporary basis.

Note: Unrealisable asset is defined in section 4.

(2) The Secretary may have regard to any other matters the Secretary considers relevant.

(3) To enable the Secretary to have regard to the matters mentioned in paragraph (1)(c) or (d), the Secretary may:

(a) require the care recipient to seek information from a Department about his or her entitlement to a benefit, income support payment or other assistance, and give the Secretary copies of written replies from the Department; or

(b) advise the care recipient to seek advice about his or her financial arrangements with the Financial Information Service established by Centrelink.

Subdivision C—Care subsidy reduction—amounts excluded from total assessable income

90 Working out care recipient’s care subsidy reduction—amounts excluded from care recipient’s total assessable income

(1) This section applies for the purpose of working out, under step 1 of the care subsidy reduction calculator in subsection 48‑7(2) of the Act, a care recipient’s total assessable income on a yearly basis using section 44‑24 of the Act.

(2) For subsection 44‑24(5) of the Act, the amounts (in this Subdivision called excluded amounts) that are to be taken, in relation to the kinds of care recipients specified in sections 91 to 94, to be excluded from determinations by the Secretary under subsection 44‑24(1) or paragraph 44‑24(2)(b), (3)(b) or (4)(b) of the Act are the following:

(a) disability pensions and permanent impairment compensation payments mentioned in section 91;

(b) gifts mentioned in section 92;

(d) clean energy payments mentioned in section 94.

91 Excluded amounts—disability pensions and permanent impairment compensation payments

(a) any amount of compensation for permanent impairment paid to the person under Part 2 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004;

(b) any amount of Special Rate Disability Pension paid to the person under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004.

92 Excluded amounts—gifts

(a) sections 1106, 1107, 1108 and 1109 of the Social Security Act; or

(b) sections 48, 48A, 48B and 48C of the Veterans’ Entitlements Act;

is an excluded amount.

Note: Sections 1106, 1107, 1108 and 1109 of the Social Security Act, and sections 48, 48A, 48B and 48C of the Veterans’ Entitlements Act, deal with disposal of ordinary income.

(a) section 1076, 1077 or 1078 of the Social Security Act; or

(b) sections 46D and 46E of the Veterans’ Entitlements Act;

is an excluded amount.

Note: Section 1076, 1077 or 1078 of the Social Security Act, and sections 46D and 46E of the Veterans’ Entitlements Act, deal with deemed income from financial assets.

93 Excluded amounts—GST compensation