Anika Wells (Lilley, Australian Labor Party, Minister for Aged Care) Share this | Hansard source

I present a supplementary explanatory memorandum to the bill I move government amendments (1) to (65) on sheet TH111:

(1) Clause 7, page 6 (after line 11), after the definition of accommodation agreement, insert:

accommodation bond means an accommodation bond within the meaning of the old Act in relation to an individual that was paid or payable by the individual immediately before the transition time.

accommodation charge means an accommodation charge within the meaning of the old Act in relation to an individual that was paid or payable by the individual immediately before the transition time.

(2) Clause 7, page 18 (after line 6), after the definition of health service, insert:

home care account, for an individual: see section 226E.

(3) Clause 7, page 21 (line 5), omit the definition of means not disclosed status, substitute:

means not disclosed status:

(a) for an individual accessing funded aged care services in a home or community setting—see section 314A; and

(b) for an individual accessing funded aged care services in an approved residential care home—see section 320.

(4) Clause 7, page 23 (after line 6), after the definition of official of the Pricing Authority, insert:

old Act means the Aged Care Act 1997.

(5) Clause 7, page 31 (after line 6), after the definition of Transition Care Program, insert:

transition time means the time this Act commences.

(6) Clause 7, page 31 (after line 8), after the definition of unit price, insert:

unspent care recipient portion, for an individual: see section 273A.

unspent Commonwealth portion, for an individual: see section 226A.

(7) Page 192 (after line 19), at the end of Division 3, add:

186A Protection of compensation

(1) For the purposes of any provision of this Act (other than section 186) and any other legislation of the Commonwealth or of a State or a Territory, a payment of compensation to an individual under section 186 is not to be treated as being a payment of compensation or damages.

Note: This subsection prevents a compensation payment affecting other payments that may be payable to the person under legislation.

(2) Nothing in this Act prevents a liability insurance contract from treating a payment of compensation under section 186 as being a payment of compensation or damages.

(8) Clause 191, page 199 (line 1), at the end of subclause (2), add:

; and (i) the registered provider has agreed to deal with the individual's unspent Commonwealth portion (if any) in accordance with Division 3A.

(9) Clause 192, page 199 (line 12) to page 200 (line 10) (method statement), omit the method statement, substitute:

Method statement

Step 1. Work out the following:

(a) if the subsidy basis for the service is efficient price or unit price—multiply theprice charged by the provider to the individual for an hour or unit of the service (whichever is applicable) by the number of hours or units of the servicedelivered to the individual on the day;

(b) if the subsidy basis for the service is cost—the cost.

Step 2. Reduce the amount worked out under Step 1 by the sum of any reduction amounts for the classification type for the service group that apply to the individual. This is the provisional subsidy amount.

Step 3. Work out:

(a) the available balance of the individual's ongoing home support account on the day in accordance with section 193, taking into account any claims already debited from that account in accordance with that section on that day; and

(b) the available balance of the individual's unspent Commonwealth portion held by the provider (if any) on the day in accordance with section 226A, taking into account any amounts already debited from that portion in accordance with that section on that day; and

(c) the available balance of the individual's home care account (if any) on the day in accordance with section 226E, taking into account any claims already debited from that account in accordance with that section on that day.

Step 4. Reduce the provisional subsidy amount by any amount (the excess amount) by which the provisional subsidy amount exceeds the available balance of the individual's ongoing home support account.

Step 5. Reduce (but not below zero) the excess amount by the available balance of the individual's unspent Commonwealth portion held by the provider (if any). This is the remaining amount.

Step 6. If the remaining amount is not zero, reduce the remaining amount by any amount by which the remaining amount exceeds the available balance of the individual's home care account (if any).

Step 7. Work out the sum of:

(a) the amount worked out under Step 4; and

(b) the amount worked out under Step 6; and

(c) any secondary person-centred supplements for the classification type ongoing for the service group home support that apply to the individual for the day.

The result is the amount of subsidy payable to the registered provider for the individual for the service for the day.

(10) Clause 192, page 200 (line 16) to page 201 (line 15) (method statement), omit the method statement, substitute:

Method statement

Step 1. Work out the following:

(a) if the subsidy basis for the service is efficient price or unit price—multiply theprice charged by the provider to the individual for an hour or unit of the service (whichever is applicable) by the number of hours or units of the servicedelivered to the individual on the day;

(b) if the subsidy basis for the service is cost—the cost.

Step 2. Reduce the amount worked out under Step 1 by the sum of any reduction amounts for the classification type for the service group that apply to the individual. This is the provisional subsidy amount.

Step 3. Work out:

(a) the available balance of the individual's short-term home support account on the day in accordance with section 195, taking into account any claims already debited from that account in accordance with that section on that day; and

(b) the available balance of the individual's unspent Commonwealth portion held by the provider (if any) on the day in accordance with section 226A, taking into account any amounts already debited from that portion in accordance with that section on that day; and

(c) the available balance of the individual's home care account (if any) on the day in accordance with section 226E, taking into account any claims already debited from that account in accordance with that section on that day.

Step 4. Reduce the provisional subsidy amount by any amount (the excess amount) by which the provisional subsidy amount exceeds the available balance of the individual's short-term home support account.

Step 5. Reduce (but not below zero) the excess amount by the available balance of the individual's unspent Commonwealth portion held by the provider (if any). This is the remaining amount.

Step 6. If the remaining amount is not zero, reduce the remaining amount by any amount by which the remaining amount exceeds the available balance of the individual's home care account (if any).

Step 7. Work out the sum of:

(a) the amount worked out under Step 4; and

(b) the amount worked out under Step 6; and

(c) any secondary person-centred supplements for the classification type short-term for the service group home support that apply to the individual for the day.

The result is the amount of subsidy payable to the registered provider for the individual for the service for the day.

(11) Clause 197, page 206 (line 16), omit "that".

(12) Clause 197, page 206 (line 22), after "paragraph (a)", insert "of this subsection".

(13) Clause 197, page 206 (line 23), at the end of subclause (3), add:

; and (c) that the fee reduction supplement and the matters set out in paragraphs (a) and (b) of this subsection may be set by a determination made by the System Governor, and that the determination may include a limited period for which the supplement is payable.

(14) Clause 205, page 211 (line 11), after "registered provider", insert "in relation to an individual".

(15) Clause 209, page 213 (line 31), at the end of subclause (2), add:

; and (i) the registered provider has agreed to deal with the individual's unspent Commonwealth portion (if any) in accordance with Division 3A.

(16) Clause 210, page 214 (line 11) to page 215 (line 9) (method statement), omit the method statement, substitute:

Method statement

Step 1. Work out the following:

(a) if the subsidy basis for the service is efficient price or unit price—multiply theprice charged by the provider to the individual for an hour or unit of the service (whichever is applicable) by the number of hours or units of the servicedelivered to the individual on the day;

(b) if the subsidy basis for the service is cost—the cost.

Step 2. Reduce the amount worked out under Step 1 by the sum of any reduction amounts for the classification type for the service group that apply to the individual. This is the provisional subsidy amount.

Step 3. Work out:

(a) the available balance of the individual's unspent Commonwealth portion held by the provider (if any) on the day in accordance with section 226A, taking into account any amounts already debited from that portion in accordance with that section on that day; and

(b) the available balance of the individual's home care account (if any) on the day in accordance with section 226E, taking into account any claims already debited from that account in accordance with that section on that day; and

(c) the available balance of the individual's notional assistive technology account on the day in accordance with section 211, taking into account any claims already debited from that account in accordance with that section on that day.

Step 4. Reduce (but not below zero) the provisional subsidy amount by the available balance of the individual's unspent Commonwealth portion held by the provider (if any).

Step 5. If the amount worked out under Step 4 is not zero, reduce the amount by any amount (the excess amount) by which the amount exceeds the available balance of the individual's home care account (if any).

Step 6. Reduce the excess amount by any amount by which the excess amount exceeds the available balance of the individual's notional assistive technology account.

Step 7. Work out the sum of:

(a) the amount worked out under Step 5; and

(b) the amount worked out under Step 6; and

(c) any secondary person-centred supplements for the classification type ongoing or short-term for the service group assistive technology that apply to the individual for the day.

The result is the amount of subsidy payable to the registered provider for the individual for the service for the day.

(17) Clause 211, page 215 (after line 30), after subclause (4), insert:

(4A) If the account was established for the individual for the classification type short-term for the service group, at the start of a day prescribed by the rules the amount prescribed by the rules is credited to the account.

(18) Clause 211, page 216 (lines 13 and 14), omit "worked out at step 1 of the method statement in section 210 for each of those claims.", substitute:

worked out as follows for each of those claims:

(a) first, take the amount worked out under Step 1 of the method statement in section 210 for the claim;

(b) then reduce the amount referred to in paragraph (a) of this subsection by the sum of:

(i) the available balance of the individual's unspent Commonwealth portion held by the registered provider (if any) on that day in accordance with section 226A, taking into account any amounts already debited from that portion in accordance with that section on that day; and

(ii) the available balance of the individual's home care account (if any) on that day in accordance with section 226E, taking into account any claims already debited from that account in accordance with that section on that day.

(19) Clause 212, page 216 (lines 24 and 25), omit "the classification type", substitute "a classification type".

(20) Clause 214, page 217 (line 21), omit "that".

(21) Clause 214, page 217 (line 27), after "paragraph (a)", insert "of this subsection".

(22) Clause 214, page 217 (line 28), at the end of subclause (3), add:

; and (c) that the fee reduction supplement and the matters set out in paragraphs (a) and (b) of this subsection may be set by a determination made by the System Governor, and that the determination may include a limited period for which the supplement is payable.

(23) Clause 218, page 219 (line 31), at the end of subclause (2), add:

; and (i) the registered provider has agreed to deal with the individual's unspent Commonwealth portion (if any) in accordance with Division 3A.

(24) Clause 219, page 220 (line 11) to page 221 (line 9) (method statement), omit the method statement, substitute:

Method statement

Step 1. Work out the following:

(a) if the subsidy basis for the service is efficient price or unit price—multiply theprice charged by the provider to the individual for an hour or unit of the service (whichever is applicable) by the number of hours or units of the servicedelivered to the individual on the day;

(b) if the subsidy basis for the service is cost—the cost.

Step 2. Reduce the amount worked out under Step 1 by the sum of any reduction amounts for the classification type for the service group that apply to the individual. This is the provisional subsidy amount.

Step 3. Work out:

(a) the available balance of the individual's unspent Commonwealth portion held by the provider (if any) on the day in accordance with section 226A, taking into account any amounts already debited from that portion in accordance with that section on that day; and

(b) the available balance of the individual's home care account (if any) on the day in accordance with section 226E, taking into account any claims already debited from that account in accordance with that section on that day; and

(c) the available balance of the individual's notional home modifications account on the day in accordance with section 220, taking into account any claims already debited from that account in accordance with that section on that day.

Step 4. Reduce (but not below zero) the provisional subsidy amount by the available balance of the individual's unspent Commonwealth portion held by the provider (if any).

Step 5. If the amount worked out under Step 4 is not zero, reduce the amount by any amount (the excess amount) by which the amount exceeds the available balance of the individual's home care account (if any).

Step 6. Reduce the excess amount by any amount by which the excess amount exceeds the available balance of the individual's notional assistive technology account.

Step 7. Work out the sum of:

(a) the amount worked out under Step 5; and

(b) the amount worked out under Step 6; and

(c) any secondary person-centred supplements for the classification type ongoing or short-term for the service group home modifications that apply to the individual for the day.

The result is the amount of subsidy payable to the registered provider for the individual for the service for the day.

(25) Clause 220, page 222 (lines 7 and 8), omit "worked out at step 1 of the method statement in section 219 for each of those claims.", substitute:

worked out as follows for each of those claims:

(a) first, take the amount worked out under Step 1 of the method statement in section 219 for the claim;

(b) then reduce the amount referred to in paragraph (a) of this subsection by the sum of:

(i) the available balance of the individual's unspent Commonwealth portion held by the registered provider (if any) on that day in accordance with section 226A, taking into account any amounts already debited from that portion in accordance with that section on that day; and

(ii) the available balance of the individual's home care account (if any) on that day in accordance with section 226E, taking into account any claims already debited from that account in accordance with that section on that day.

(26) Clause 221, page 222 (line 18), after "account period for", insert "a".

(27) Clause 223, page 223 (line 15), omit "that".

(28) Clause 223, page 223 (line 16), before "the fee", insert "that".

(29) Clause 223, page 223 (line 22), at the end of subclause (3), add:

; and (c) that the fee reduction supplement and the matters set out in paragraphs (a) and (b) of this subsection may be set by a determination made by the System Governor, and that the determination may include a limited period for which the supplement is payable.

(30) Page 224 (after line 19), after Division 3, insert:

Division 3A — Unspent Commonwealth portions and home care accounts

226A Unspent Commonwealth portion

(1) A registered provider starts to hold an unspent Commonwealth portion for an individual at the transition time if, immediately before the transition time:

(a) the registered provider was an approved provider that held an unspent home care amount in relation to the individual as mentioned in the User Rights Principles 2014; and

(b) the amount of the Commonwealth portion of that amount under section 21CA of those Principles was not zero.

(2) The available balance of the individual's unspent Commonwealth portion at a time is the difference, worked out in accordance with this section, between the sum of the credits that have been made to the portion at that time reduced (but not below zero) by the sum of the debits that have been made to the portion at that time.

Initial credit

(3) At the transition time, the amount of the Commonwealth portion of the individual's unspent home care amount under section 21CA of the User Rights Principles 2014 immediately before the transition time is credited to the portion.

Debits for claims

(4) If one or more claims are made under section 251 for person-centred subsidy for the delivery of a funded aged care service to the individual on a day, the portion is reduced on that day (but after the start of the day), in the order prescribed by the rules, by the amount by which the provisional subsidy amount for the service was reduced under:

(a) Step 5 of the method statement in subsection 192(1) or (2); or

(b) Step 4 of the method statement in section 210; or

(c) Step 4 of the method statement in section 219;

(as applicable) for each of those claims.

Insufficient funds

(5) If the debiting of an amount in relation to a claim under subsection (4) would result in the portion being debited below zero, the claim is taken to be a claim for such lesser amount (including a nil amount) that would not result in the portion being debited below zero.

Debit for return of unspent Commonwealth portion provider election

(6) If the registered provider elects to return the available balance of an unspent Commonwealth portion for the individual to the Commonwealth under section 226B, the portion is reduced, at the start of a day prescribed by the rules (which may be a day before the day the election is made), by the amount of that balance at the start of that day.

Debit for return of unspent Commonwealth portion individual transfers between provider service delivery branches

(7) If a registered provider returns the available balance of an unspent Commonwealth portion for the individual to the Commonwealth under section 226C, the portion is reduced, at the start of a day prescribed by the rules, by the amount of that balance at the start of that day.

Debit for return of unspent Commonwealth portion provider ceases to deliver services

(8) If a registered provider returns the available balance of an unspent Commonwealth portion for the individual to the Commonwealth under section 226D, the portion is reduced, at the start of a day prescribed by the rules, by the amount of that balance at the start of that day.

Ceasing of portion

(9) The registered provider ceases to hold an unspent Commonwealth portion for an individual when the available balance of the portion is reduced to zero.

226B Return of unspent Commonwealth portion — provider election

(1) A registered provider may, by written notice given to the System Governor and in accordance with the rules, elect to return the available balance of an unspent Commonwealth portion for an individual to the Commonwealth.

(2) Before making the election, the registered provider must obtain the individual's written agreement to the making of the election.

(3) The election is irrevocable.

226C Return of unspent Commonwealth portion — individual transfers between provider service delivery branches

(1) This section applies if:

(a) a registered provider holds an unspent Commonwealth portion for an individual to whom the provider is delivering funded aged care services through a particular service delivery branch of the provider; and

(b) the provider ceases to deliver those services to the individual through that service delivery branch and starts to deliver those services to the individual through another service delivery branch of the provider; and

(c) there is continuity of the delivery of those services to the individual by that provider.

(2) The provider must:

(a) give the System Governor written notice of the matters mentioned in subsection (1); and

(b) return the available balance of the unspent Commonwealth portion for the individual to the Commonwealth.

226D Return of unspent Commonwealth portion — provider ceases to deliver services

(1) This section applies if:

(a) a registered provider holds an unspent Commonwealth portion for an individual to whom the provider is delivering funded aged care services; and

(b) the provider ceases to deliver funded aged care services to the individual.

(2) The provider must:

(a) give the System Governor written notice of the matters mentioned in subsection (1); and

(b) return the available balance of the unspent Commonwealth portion for the individual to the Commonwealth.

226E Home care account balance

Home care account

(1) A notional home care accountis established for an individualat the transition time if:

(a) immediately before the transition time:

(i) the individual had a home care account under the old Act; and

(ii) the home care account balance of that account under the old Act was not zero; and

(b) at the transition time, no registered provider holds an unspent Commonwealth portion for the individual under section 226A.

Available balance

(2) The available balance of an individual's home care account at a time is the difference, worked out in accordance with this section, between the sum of the credits that have been made to the account at that time, reduced (but not below zero) by the sum of the debits that have been made to the account at that time.

Initial credit

(3) At the transition time, the amount of the individual's home care account balance under the old Act immediately before the transition time is credited to the account.

Credit for return of unspent Commonwealth portion provider election

(4) If a registered provider elects to return the available balance of an unspent Commonwealth portion for the individual to the Commonwealth under section 226B, the account is credited, at the start of a day prescribed by the rules (which may be a day before the day the election is made), by the amount of that balance at the start of that day.

Credit for return of unspent Commonwealth portion individual transfers between provider service delivery branches

(5) If a registered provider returns the available balance of an unspent Commonwealth portion for the individual to the Commonwealth under section 226C, the account is credited, at the start of a day prescribed by the rules, by the amount of that balance at the start of that day.

Credit for return of unspent Commonwealth portion provider ceases to deliver services

(6) If a registered provider returns the available balance of an unspent Commonwealth portion for the individual to the Commonwealth under section 226D, the account is credited, at the start of a day prescribed by the rules, by the amount of that balance at the start of that day.

Debits

(7) If one or more claims are made under section 251 for person-centred subsidy for the delivery of a funded aged care service to the individual on a day, the account is reduced on that day (but after the start of the day), in the order prescribed by the rules, by the amount worked out under:

(a) Step 6 of the method statement in subsection 192(1) or (2); or

(b) Step 5 of the method statement in section 210; or

(c) Step 5 of the method statement in section 219;

(as applicable) for each of those claims.

Insufficient funds

(8) If the debiting of an amount in relation to a claim under subsection (7) would result in the account being debited below zero, the claim is taken to be a claim for such lesser amount (including a nil amount) that would not result in the account being debited below zero.

Ceasing of account

(9) The account ceases when:

(a) the available balance of the account is reduced to zero; and

(b) no registered provider holds an unspent Commonwealth portion for the individual under section 226A.

(31) Clause 231, page 229 (line 21), omit "that".

(32) Clause 231, page 229 (line 22), before "the fee", insert "that".

(33) Clause 231, page 229 (line 31), at the end of subclause (3), add:

; and (c) that the fee reduction supplement and the matters set out in paragraphs (a) and (b) of this subsection may be set by a determination made by the System Governor, and that the determination may include a limited period for which the supplement is payable.

(34) Clause 235, page 232 (after line 28), at the end of the clause, add:

(6) Despite subsections (1), (2) and (5), if the individual is included in a class of individuals prescribed by the rules, the person-centred subsidy reduction for the day is the amount prescribed by the rules.

(35) Clause 242, page 237 (after line 5), at the end of the clause, add:

(5) Despite subsections (1), (3) and (4), the provider-based subsidy reduction for a registered provider for the classification type ongoing for the service group residential care for an individual is the amount prescribed by the rules if the individual is included in a class of individuals prescribed by the rules.

(36) Clause 273, page 258 (lines 18 and 19), omit Step 1 of the method statement, substitute:

Step 1. Work out:

(a) if the service group is home support—the individual's individual contribution rate under section 314 for the day referred to in subsection (1) of this section; or

(b) if the service group is assistive technology or home modifications—the lower of the individual's individual contribution rate under section 314 for the day referred to in subsection (1) of this section and the day prescribed by the rules.

(37) Clause 273, page 259 (line 27), at the end of subclause (5), add:

; (c) any other contribution or fee prescribed by the rules.

(38) Page 259 (after line 27), after clause 273, insert:

273A Unspent care recipient portion

(1) A registered provider starts to hold an unspent care recipientportion for an individual at the transition time if, immediately before the transition time:

(a) the registered provider was an approved provider that held an unspent home care amount in relation to the individual as mentioned in the User Rights Principles 2014; and

(b) the amount of the care recipient portion of that amount under section 21CA of those Principles was not zero.

(2) The registered provider must comply with any requirements prescribed by the rules relating to unspent care recipient portions.

(39) Clause 276, page 261 (after line 26), at the end of the clause, add:

(4) Without limiting paragraph (2)(b), rules made for the purposes of that paragraph may provide that an amount may be charged for only a particular period.

(40) Clause 277, page 262 (lines 22 to 24), omit subclause (4), substitute:

(4) Despite subsection (1), if the individual is in a class of individuals prescribed by the rules, the maximum daily amount of the resident contribution payable by the individual for a day is the amount prescribed by the rules.

(5) Reduce the following amounts in accordance with rules made for the purposes of subsection 231(3):

(a) if subsection (1) of this section applies—the amounts worked out under each of Steps 1, 3 and 4 of the method statement in that subsection;

(b) if subsection (4) of this section applies—each amount prescribed by the rules that relates to the amount worked out under that subsection.

(41) Clause 278, page 263 (after line 17), at the end of the clause, add:

(3) This section does not apply if the individual is included in a class of individuals prescribed by the rules.

(42) Clause 279, page 265 (line 5), at the end of subclause (5), add:

; (c) any other contribution or fee prescribed by the rules.

(43) Clause 279, page 265 (after line 5), at the end of the clause, add:

(6) This section does not apply if the individual is included in a class of individuals prescribed by the rules.

(44) Clause 283, page 268 (after line 16), at the end of the clause, add:

(5) Without limiting paragraph (2)(b), rules made for the purposes of that paragraph may provide that an amount may be charged for only a particular period.

(45) Clause 284, page 269 (after line 13), at the end of the clause, add:

(6) Despite subsection (1), the registered provider must not:

(a) charge the individual a higher everyday living fee in circumstances prescribed by the rules; or

(b) enter into a higher everyday living agreement with the individual in circumstances prescribed by the rules.

(46) Clause 287, page 271 (line 5), before "This", insert "(1)".

(47) Clause 287, page 271 (after line 12), at the end of the clause, add:

(2) The provisions of this Part do not apply in respect of the delivery of funded aged care services to an individual (other than under a specialist aged care program) if the individual is included in a class of individuals prescribed by the rules.

(3) If the provisions of this Part do not apply in respect of the delivery of funded aged care services to a class of individuals because of subsection (2), the rules may prescribe different requirements in relation to the delivery of those services so far as the requirements relate to an accommodation bond or accommodation charge, and the charging or payment of any amounts in relation to such a bond or charge.

(48) Clause 294, page 279 (line 24), before "less", insert "equal to or".

(49) Clause 294, page 279 (line 34), after "method", insert "prescribed by the rules".

(50) Clause 294, page 281 (line 1), after "method", insert "prescribed by the rules".

(51) Clause 297, page 284 (line 5), after "and the home", insert "(reduced by any deductions made to that amount in accordance with section 308)".

(52) Clause 302, page 286 (after line 25), after paragraph (c), insert:

(ca) circumstances in which an individual's daily accommodation payment is not to be indexed in accordance with rules made for the purposes of paragraphs (b) and (c); and

(53) Clause 308, page 289 (after line18), at the end of the clause, add:

(5) Despite subsection (1), that subsection does not apply in relation to an individual's refundable deposit balance if the individual is in a class of individuals prescribed by the rules.

(54) Clause 314, page 295 (line 11), omit "decision", substitute "determination".

(55) Clause 314, page 295 (line 21), omit "decision", substitute "determination".

(56) Clause 314, page 295 (line 23), omit "decision", substitute "determination".

(57) Clause 314, page 295 (lines 26 and 27), omit "worked out in accordance with a method".

[technical correction

(58) Page 295 (after line 27), after clause 314, insert:

314A Means not disclosed status

Means not disclosed status

(1) An individual accessing funded aged care services in a home or community setting has means not disclosed status if:

(a) the System Governor determines that the individual has that status in accordance with the rules; or

(b) the individual makes an election in accordance with section 314B.

(2) Without limiting paragraph (1)(a), rules made for the purposes of that paragraph may prescribe that the System Governor may determine that the individual has means not disclosed status if the individual is asked to provide specified information prescribed by the rules, within a specified period, and the individual fails to do so.

Determining means not disclosed status

(3) A determination under paragraph (1)(a) takes effect on the day specified by the System Governor in the notice under subsection (5). The day may be before the day on which the determination is made but must be in accordance with the rules.

Note: For example, the means not disclosed status may take effect on the individual's start day.

(4) If, after that determination is made, the individual provides sufficient information as requested under subsection (2), the System Governor must:

(a) revoke the determination that the individual has means not disclosed status; and

(b) determine the day the revocation takes effect (which may be before the day that determination is made).

Giving notice of determination

(5) Within 14 days after making a determination under paragraph (1)(a) or (4)(b), the System Governor must give written notice of the decision to make that determination to the individual.

(6) The notice under subsection (5) must:

(a) if the decision is to make a determination under paragraph (1)(a):

(i) explain the consequences of the individual having means not disclosed status and the steps the individual must take if the individual wants the determination to be revoked; and

(ii) specify the day the determination takes effect (see subsection (3)); and

(iii) set out the reasons for both the decision to make the determination and the decision as to the day the determination takes effect; and

(b) if the decision is to make a determination under paragraph (4)(b):

(i) specify the day the revocation takes effect; and

(ii) set out the reasons for the decision as to the day the revocation takes effect; and

(c) state how the individual may apply for reconsideration of the decisions mentioned in the notice; and

(d) include such other matters as are prescribed by the rules.

Determinations not legislative instruments

(7) If a determination under paragraph (1)(a) or (4)(b) is in writing, it is not a legislative instrument.

314B Electing to have means not disclosed status

(1) An individual may, by written notice given to the System Governor, elect not to give any information prescribed by the rules for the purposes of subsection 314A(2) to the System Governor.

(2) The individual may make the election during the period:

(a) starting on the individual's start day; and

(b) ending on the day immediately before the day the System Governor determines, in accordance with the rules, that the individual has means not disclosed status.

(3) If the individual makes an election under subsection (1), the individual's means not disclosed status takes effect on the individual's start day and remains in effect until the day the individual withdraws the election in accordance with subsection (5).

(4) While the election is in effect, the System Governor must not request the individual to give any information prescribed by the rules for the purposes of subsection 314A(2).

(5) The individual may, by written notice given to the System Governor, withdraw the election.

(59) Heading to clause 315, page 296 (line 1), omit "of".

(60) Clause 319, page 302 (lines 8 and 9), omit "total assessable income", substitute "asset".

(61) Clause 319, page 304 (after line 2), at the end of the clause, add:

(5) Despite subsection (1), if the individual is in a class of individuals prescribed by the rules, the daily means tested amount for the individual is the amount prescribed by the rules.

(6) To avoid doubt, an amount prescribed by the rules under subsection (5) may refer to an individual's total assessable income, the value of an individual's assets, or both.

(62) Clause 320, page 304 (line 5), after "individual", insert "accessing funded aged care services in an approved residential care home".

(63) Heading to clause 336, page 328 (line 2), omit "of".

(64) Page 329 (after line 7), at the end of Chapter 4, add:

Part 6 — Miscellaneous

337A Compensation for acquisition of property

(1) If the operation of:

(a) this Chapter; or

(b) a legislative instrument made under this Chapter;

would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph), the Commonwealth is liable to pay a reasonable amount of compensation to the person.

(2) If the Commonwealth and the person do not agree on the amount of the compensation, the person may institute proceedings in:

(a) the Federal Court of Australia; or

(b) the Supreme Court of a State or Territory;

for the recovery from the Commonwealth of such reasonable amount of compensation as the court determines.

(65) Clause 602, page 543 (after line 15), after subclause (7), insert:

Rules about transitional cohorts

(7A) Without limiting subsections (1) and (7), the rules may make different provision for an amount (including in any of the ways provided for in subsection (7)) for different classes of individuals, including classes of individuals (transitional cohorts) identified by reference to the individual being approved as a recipient of a kind of care under any of the following as in force or existing immediately before the commencement of this section:

(a) the Aged Care Act 1997;

(b) the Aged Care (Transitional Provisions) Act 1997;

(c) the program manual for the Commonwealth Home Support Program or the National Aboriginal and Torres Strait Islander Flexible Aged Care Program.

(7B) Without limiting subsection (1), the rules may prescribe the following:

(a) arrangements for individuals in a transitional cohort to elect to cease to be included in the cohort;

(b) circumstances in which an individual will cease to be included in a transitional cohort.

The government moves this amendment to include grandfathering arrangements, including the 'no worse off' principle in the primary legislation for the Aged Care Bill. We have heard from stakeholders that they are concerned about what this change will mean for people who are already accessing aged care. To respond to these concerns and provide certainty to people already in aged care, we're putting the grandfathering arrangements in the bill. This will mean that existing home care package care recipients, people on the national priority system or individuals who have been assessed as eligible for home care at the date the new arrangements were announced will pay the same or lower contributions under the new system. The principle will also apply to people who are receiving residential care at the time the reforms were announced. These residents will retain their existing arrangements for their time in residential care.

See this speech in context