Itisnotintendedtopre-Emptthedecisionsoftheministerformentalhealthand

EXPOSURE-DRAFT

EXPOSUREDRAFT(26July2013)

AgedCare(MaximumAccommodation

PaymentAmount)Determination2013

IMPORTANTNOTE:

ThisExposureDraftisforconsultativepurposesonly.

Itisnotintendedtopre-emptthedecisionsoftheMinisterforMentalHealthand

AgeingorGovernmentinrelationtothefinalPrinciples.

Section1

Contents

1Nameofdetermination...... 3

2Commencement...... 3

3Authority...... 3

4Definitions...... 3

5Maximumrefundableaccommodationdepositamount...... 3

6Maximumdailyaccommodationpaymentamount...... 3

2AgedCare(MaximumAccommodationPaymentAmount)Determination2013

Section1

1 Nameofdetermination

ThisdeterminationistheAgedCare(MaximumAccommodationPayment

Amount)Determination2013.

2 Commencement

Thisdeterminationcommenceson1July2014.

3 Authority

Thisdeterminationismadeundersubitems26(1)and(2)ofSchedule2totheAgedCare(LivingLongerLivingBetter)Act2013andsubsections52G-3(1)and(2)oftheAgedCareAct1997.

4 Definitions

Inthisdetermination:

ActmeanstheAgedCareAct1997.

priceagreementday,forapersonandanagedcareservice,meansthedayonwhichthepersonandtheprovideroftheserviceagree,under

paragraph52F-1(1)(b)oftheAct,aboutthemaximumamountthatwouldbepayableifthepersonpaidanaccommodationpaymentfortheservice.

Note:AnumberofexpressionsusedintheseprinciplesaredefinedinSchedule1totheAct,includingthefollowing:

(a) accommodationpayment;

(b) dailyaccommodationpayment;

(c) refundableaccommodationdeposit.

5 Maximumrefundableaccommodationdepositamount

Themaximumrefundableaccommodationdepositamountthatanapprovedprovidermaychargeapersonis$455000.

Note:AnapprovedprovidermaychargeapersonarefundableaccommodationdepositamountofuptotheamountspecifiedinthissectionwithoutobtainingapprovalfromtheAgedCarePricingCommissioner.However,ifanapprovedproviderwishestochargeanamountofaccommodationpaymentthatishigherthantherefundableaccommodationdepositamountspecifiedinthissection,theapprovedprovidermay

applytotheAgedCarePricingCommissionerforapprovaltochargethehigheramount

(seesection52G-4oftheActandtheFeesandPaymentsPrinciples2013).

6 Maximumdailyaccommodationpaymentamount

(1)Themaximumdailyaccommodationpaymentamountthatanapprovedprovidermaychargeapersonisworkedoutasfollows:

AgedCare(MaximumAccommodationPaymentAmount)Determination20133

Section6

Maximumdailyaccommodationpaymentamountcalculator

Step1.Workoutthemaximumpermissibleinterestrateforthepersonusingthecalculatorinsubsection(2).

Step2.Multiplytherateworkedoutatstep1by$455000(beingthemaximumrefundableaccommodationdepositamountreferredtoinsection5).

Step3.Dividetheamountworkedoutatstep2by364.

Theresultisthemaximumdailyaccommodationpaymentamountthattheapprovedprovidermaychargetheperson.

(2)Themaximumpermissibleinterestrateforthepersonisworkedoutasfollows:

Maximumpermissibleinterestratecalculator

Step1.Workoutthegeneralinterestchargeratefortheperson’spriceagreementdayundersection8AADoftheTaxationAdministrationAct

1953.

Step2.Multiplytherateworkedoutatstep1bythenumberofdaysinthecalendaryearinwhichtheperson’spriceagreementdayfalls.

Step3.Subtract3percentagepointsfromtheamountworkedoutatstep2.Theresultisthemaximumpermissibleinterestratefortheperson.

Note:Ifaperson’spriceagreementdaywerethedayonwhichthisdeterminationismade,themaximumdailyaccommodationpaymentamountthatanapprovedprovidercouldchargethepersonwouldbe$85.25.

4AgedCare(MaximumAccommodationPaymentAmount)Determination2013