Aged Care Act 1997
User Rights Principles 1997
Note: Part 4.2 of the Aged Care Act 1997
Part 4.2 of the Aged Care Act 1997 is about the responsibilities of an approved provider to the users and proposed users of the provider’s aged care service.
The Part sets out a number of user rights, and the provider’s related responsibilities. Other rights and responsibilities are set out in these Principles.
An approved provider’s failure to meet its responsibilities may lead to sanctions being imposed under Part 4.4 of the Act.
These Principles may be cited as the User Rights Principles 1997.
These Principles commence on 1 October 1997.
In these Principles:
Act means the Aged Care Act 1997.
agreed fee, for a care recipient and an approved provider, means a fee, charge or other payment that is:
(a) agreed between the care recipient and approved provider; and
(b) not prohibited under the Act.
authorised body means:
(a) for Division 4 of Part 2—a body that has been paid an advocacy or community visitors grant; or
(b) for Division 2 of Part 3—a body that has been paid an advocacy grant.
Board has the meaning given by section 23.34.
costs of the scheme means costs incurred by the Board, the scheme manager and the trustee in establishing the Board, the Fund and the Trust, administering Division 4 of Part 4, making good any capital loss arising from investment of the Fund, and establishing reserves out of income to help carry out the objectives of the scheme.
due date has the meaning given by section 57-18 of the Act.
entry day, for a care recipient, means the day when the care recipient enters the residential care service or, if the care recipient is transferred from respite care to permanent accommodation, the day of the transfer.
Fund has the meaning given by section 23.34.
income, for the Fund, means the income derived from investment of accommodation bonds after deduction of costs of the scheme.
interest equivalent means the amount an approved provider could have been expected to have derived from investment of a care recipient’s accommodation bond balance.
lump sum equivalent, for a care recipient who has elected to pay an accommodation bond wholly or partly by periodic payments, means an amount equal to the amount of the lump sum that the care recipient would have paid if the care recipient had not elected to pay the accommodation bond by periodic payments.
minimum permissible asset value has the meaning given by section 57‑12 of the Act.
scheme manager has the meaning given by section 23.37.
transfer, of a care recipient from respite care to permanent accommodation, means the entry by the care recipient to the residential care service concerned on a permanent basis after having received respite care.
Treasury Note yield has the meaning given by section 214A of the Income Tax Assessment Act 1936.
Trust has the meaning given by section 23.34.
trustee has the meaning given by section 23.35.
Note: Definitions A number of expressions used in these Principles are defined in the Aged Care Act 1997 (see Dictionary in Schedule 1), including:
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∑ accommodation bond ∑ accommodation bond agreement ∑ accommodation bond balance ∑ advocacy grant ∑ aged care ∑ approved provider ∑ care ∑ community care ∑ community care agreement ∑ community visitors grant ∑ concessional resident ∑ dependent child ∑ extra service agreement ∑ income support payment ∑ personal information ∑ place ∑ resident agreement ∑ residential care ∑ residential care service ∑ respite care.
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Part 2—User rights and responsibilities for residential care
Division 1—Access to aged care services for complaints resolution
23.4 Purpose of Division (Act, s 56-4)
This Division specifies the access that an approved provider must allow people authorised by the Secretary to investigate and assist in the resolution of complaints.
23.5 Approved provider to allow necessary access
The approved provider must allow the access necessary to investigate and assist in the resolution of the complaint.
23.6 Purpose of Division (Act, s 56-1)
This Division specifies the arrangements for providing security of tenure for a care recipient’s place in the residential care service.
23.7 Leaving residential care service
(1) The approved provider may ask the care recipient to leave the residential care service only if subsection (2), (3) or (4) applies.
(2) The approved provider may ask the care recipient to leave if the residential care service:
(a) is closing; or
(b) no longer provides accommodation and care suitable for the care recipient, having regard to the care recipient’s long-term assessed needs (see subsection (4)), and the approved provider has not agreed to provide care of the kind that the care recipient presently needs.
(3) The approved provider may ask the care recipient to leave if the care recipient:
(a) no longer needs the care provided through the residential care service (see subsection (5)); or
(b) has not paid any agreed fee to the approved provider within 42 days after the day when it is payable, for a reason within the care recipient’s control; or
(c) has intentionally caused:
(i) serious damage to the residential care service; or
(ii) serious injury to the approved provider (if the approved provider is an individual); or
(iii) serious injury to an employee of the approved provider, or to another care recipient; or
(d) is away from the residential care service for a continuous period of at least 7 days for a reason other than:
(i) a reason permitted by the Act; or
(ii) an emergency.
(4) For paragraph (2) (b), the long-term needs of the care recipient must be assessed by:
(a) an aged care assessment team; or
(b) at least 2 medical or other health practitioners who meet the following criteria:
(i) 1 must be independent of the approved provider and the residential care service, and must be chosen by the care recipient or the care recipient’s appropriate representative;
(ii) both must be competent to assess the aged care needs of the care recipient.
(5) For paragraph (3) (a), the needs of the care recipient must be assessed by an aged care assessment team.
23.8 Requiring care recipient to leave residential care service
(1) If the approved provider decides to require the care recipient to leave the residential care service, the approved provider must give the care recipient a written notice that includes the following information:
(a) the decision;
(b) the reasons for the decision;
(c) when the care recipient is to leave;
(d) the care recipient’s rights about leaving, including the right of access to:
(i) the complaints resolution mechanisms; and
(ii) independent complaints processes; and
(iii) 1 or more representatives of an advocacy service.
Note: For complaints resolution mechanisms, see s 56-4 of the Act.
(2) The approved provider must give the notice to the care recipient at least 14 days before the care recipient is to leave.
(3) The approved provider must not take action to make the care recipient leave, or imply that the care recipient must leave, before suitable alternative accommodation is available that meets the care recipient’s assessed long-term needs and is affordable by the care recipient.
(4) For subsection (3), the long-term needs of the care recipient must be assessed by:
(a) an aged care assessment team; or
(b) at least 2 medical or other health practitioners who meet the following criteria:
(i) 1 must be independent of the approved provider and the residential care service, and must be chosen by the care recipient or the care recipient’s representative;
(ii) both must be competent to assess the aged care needs of the care recipient.
(5) The approved provider must give the care recipient a notice stating that the care recipient is no longer required to leave if:
(a) the decision to require the care recipient to leave was based on the care recipient’s behaviour; and
(b) the approved provider has, since giving the original notice, agreed with the care recipient that, because of a change in the behaviour, the care recipient should stay.
Division 3—Access by representatives of care recipients
23.9 Purpose of Division (Act, s 56-1)
This Division specifies the arrangements for allowing people acting for care recipients to have access to an approved provider’s residential care service.
If a care recipient, or a care recipient’s representative, has asked a person acting for care recipients to assist the care recipient, the approved provider must allow the person to have access to the residential care service at any time.
Division 4—Access by advocates and community visitors
23.11 Purpose of Division (Act, s 56-1)
This Division specifies the arrangements for allowing people acting for authorised bodies to have access to an approved provider’s residential care service.
The approved provider must allow a person acting for an authorised body to have access to the residential care service:
(a) during normal business hours; or
(b) if a care recipient, or a care recipient’s representative, has asked for a person acting for the authorised body to assist the care recipient—at any time.
Division 5—Consistency with rights and responsibilities
23.13 Purpose of Division (Act, s 56-1)
This Division specifies rights and responsibilities of care recipients who are receiving residential care.
23.14 Rights and responsibilities
The rights and responsibilities of care recipients include the rights and responsibilities under the Charter of Residents’ Rights and Responsibilities set out in Schedule 1.
Division 6—Other responsibilities of approved providers of residential care
23.15 Purpose of Division (Act, s 56-1)
This Division specifies other responsibilities that an approved provider has in relation to a care recipient to whom the approved provider provides, or is to provide, residential care.
23.16 Information to be given to new care recipient about rights and obligations etc
(1) When a care recipient enters a residential care service, the approved provider must give information to the care recipient, or his or her representative, about:
(a) the care recipient’s rights and obligations in relation to the service under:
(i) the Charter of Residents’ Rights and Responsibilities set out in Schedule 1; or
(ii) this Part; and
(b) if the care recipient has not entered into a resident agreement—the matters mentioned in paragraphs 59-1 (1) (b) to (h) of the Act.
(2) The approved provider must assist the care recipient, or his or her representative, to understand the information.
23.17 Restrictions on moving care recipient within residential care service
A care recipient may be moved to another bed or room in the residential care service only if:
(a) the move is at the care recipient’s request; or
(b) the care recipient agrees to move after being fully consulted and without being subject to any pressure; or
(c) the move is necessary on genuine medical grounds as assessed by:
(i) an aged care assessment team; or
(ii) at least 2 medical or other health practitioners who meet the following criteria:
(A) 1 must be independent of the approved provider and the residential care service, and must be chosen by the care recipient or the care recipient’s appropriate representative;
(B) both must be competent to assess the aged care needs of the care recipient; or
(d) the place occupied by the care recipient becomes an extra service place and the care recipient elects not to pay the extra service fee; or
(e) the move is necessary to carry out repairs or improvements to the premises where the residential care service operates and the care recipient has the right to return to the bed or room, if it continues to exist as a bed or room for care recipients when the repairs or improvements are finished.
23.18 Booking fees—respite stays
(1) A booking fee for respite care must not exceed the lesser of:
(a) 1 week’s fee for the respite care; and
(b) 25% of the fee for the proposed period of respite care.
(2) The booking fee must be deducted from the fee for the respite care.
(3) The booking fee must be refunded if the care recipient enters hospital or dies:
(a) before entering respite care; or
(b) after entering respite care and before the end of the booked period.
(4) The booking fee must also be refunded if the approved provider requires the care recipient to leave the respite care before the end of the booked period.
(5) If a care recipient chooses to leave the respite care before the end of the booked period, the whole or part of the fee for the unused part of the booked period may be taken from the booking fee.
The approved provider must, if asked, give a care recipient, or a care recipient’s representative, the following information about the financial viability of the residential care service:
(a) either:
(i) the most recent statement of the service’s audited accounts; or
(ii) if the service is operated as part of a broader organisation—the most recent statement of the audited accounts of the organisation’s aged care component; and
(b) if the care recipient has paid, or agreed to pay, an accommodation bond—the most recent information on the provider’s standing with, and level of coverage under, the prudential scheme applying to the provider.
Part 3—User rights and responsibilities for community care
23.20 Purpose of Division (Act, s 56-2)
This Division specifies the arrangements for providing security of tenure for a care recipient’s place in a community care service.
The approved provider may reallocate the care recipient’s place to another care recipient only if:
(a) the care recipient cannot be cared for in the community with the resources available to the approved provider; or
(b) the care recipient tells the approved provider, in writing, that the care recipient wishes to move to a location where community care provided by the provider is not available; or
(c) the care recipient tells the approved provider, in writing, that the care recipient no longer wishes to receive the care; or
(d) the care recipient’s condition changes to the extent that:
(i) the care recipient no longer needs community care; or
(ii) the care recipient’s needs, as assessed by the Secretary, can be more appropriately met by other types of services or care.
Division 2—Access by advocates
23.22 Purpose of Division (Act, s 56-2)
This Division specifies the arrangements for allowing people acting for authorised bodies to assist a care recipient to have access to an approved provider’s community care service.
If the care recipient, or the care recipient’s representative, has asked for a person acting for an authorised body to assist the care recipient, the approved provider must allow the person to have access to the provider’s community care service.
Division 3—Consistency with rights and responsibilities
23.24 Purpose of Division (Act, s 56-2)
This Division specifies the rights and responsibilities of care recipients who are receiving community care.
23.25 Rights of care recipients
(1) A care recipient has the following rights:
(a) to be involved in deciding the community care most appropriate for the care recipient’s needs;
(b) to be given enough information to help the care recipient make an informed choice;
(c) to choose, from the community care available, the community care that best meets the care recipient’s needs;
(d) to be given a written community care plan of the community care that the care recipient will receive;
(e) to receive community care that takes account of the care recipient’s lifestyle and cultural, linguistic and religious preferences;
(f) to be able to take part in social activities and community life as the care recipient wishes;
(g) to be treated with dignity, with the care recipient’s privacy respected;
(h) to complain about the community care being received, without fear of losing the care or being disadvantaged in any other way;
(i) to choose a person to speak on the care recipient’s behalf for any purpose.
(2) The approved provider must not act in a way inconsistent with the care recipient’s right to enter into a community care agreement with the provider.
23.26 Rights of prospective care recipients
(1) An approved provider must give written advice to a prospective care recipient, or the care recipient’s representative, about the rights, responsibilities and entitlements of the care recipient and provider, including the care recipient’s rights and responsibilities about payment of community care charges.
(2) The advice must be given before confirmation of the date for the start of the community care.
23.27 Purpose of Division (Act, s 57-2)
This Division specifies the information about accommodation bonds that an approved provider must provide to a care recipient before the care recipient enters the provider’s residential care service.
23.28 Information about accommodation bonds
(1) The approved provider must tell the care recipient whether the residential care service charges an accommodation bond if the person is not a concessional resident.
(2) If the residential care service charges an accommodation bond and the person is not a concessional resident, the approved provider must give the care recipient the following information about the accommodation bond:
(a) the requirement, if the care recipient has given the provider enough information to decide the value of the care recipient’s assets, for the care recipient to be left, after paying the accommodation bond, with assets having a value of at least the care recipient’s minimum permissible asset value;
(b) details of the interest rate to be charged on amounts owed under the accommodation bond agreement, resident agreement or extra service agreement, and the capacity for amounts and accrued interest on them to be deducted from the balance of the bond before it is refunded;
(c) the amounts of bonds charged;
(d) the retention amount of the bond;
(e) the interest rate on the bond if there is a delay in payment of the lump sum or the bond is paid wholly or partly by periodic payments;
(f) the periods when the retention amount and interest are charged;
(g) payment options (that is, by lump sum, periodic payments, or a combination of lump sum and periodic payments);
(h) refund arrangements;
(i) the prudential arrangements applying to the accommodation bond balance;
(j) when an accommodation bond is not required or, if paid, is refundable;
(k) the approved provider’s right to transfer between schemes under Divisions 3 and 4.
Note: Section 57-2 of the Act sets out basic rules about accommodation bonds. In particular, paragraphs 57-2 (a) and (h) deal with circumstances when an accommodation bond is not required or, if paid, is refundable.
Division 2—Other rules about accommodation bonds
23.29 Purpose of Division (Act, s 57-2)
This Division specifies other rules about accommodation bonds.
23.30 Accommodation bond agreement required even if waiver is sought
(1) This section applies if:
(a) the care recipient is not a concessional resident; and
(b) the approved provider or care recipient has applied to the Secretary for a determination, under subsection 57-14 (1) of the Act, that the care recipient must not be charged an accommodation bond because paying the accommodation bond would cause the care recipient financial hardship.
(2) An accommodation bond agreement must still be made if:
(a) the application has not been decided; and
(b) the approved provider intends to charge an accommodation bond if the application is refused.
(3) The agreement must state that the accommodation bond is payable if:
(a) the Secretary declines to make the determination; or
(b) the determination is made but later ceases to be in force.
(4) If the care recipient has a physical incapacity, a person nominated by the care recipient may sign the agreement for the care recipient.
(5) If the care recipient has a cognitive impairment, a person who is authorised to sign documents for the care recipient may sign the agreement for the care recipient.
23.31 Payment if agreed accommodation bond not paid
(1) This section applies to a care recipient who:
(a) leaves the residential care service after being provided with care for more than 2 months; and
(b) has agreed to pay the accommodation bond wholly or partly as a lump sum; and
(c) does not pay the accommodation bond before leaving the residential care service.
(2) The care recipient may be required to pay the interest equivalent to the approved provider.
(3) The interest equivalent is the amount worked out in accordance with the following formula:
where:
IR is:
(a) the interest rate mentioned in the accommodation bond agreement; and
(b) not more than the Treasury Note yield for the month 2 months before the month in which the entry day happens;
LS is the amount of the lump sum;
ND is the number of days in the period:
(a) beginning on the first day of the month in which the due date happens; and
(b) ending on the last day of the month in which the care recipient leaves the service.
Division 3—General prudential requirements
23.32 Purpose of Division (Act, s 57-4)
This Division specifies the general prudential requirements for:
(a) protecting the accommodation bond balances of care recipients; and
(b) enabling accommodation bond balances owed to care recipients and former care recipients to be refunded in a timely way.
This Division applies to approved providers that charge accommodation bonds and are not registered providers under Division 4, and to accommodation bonds received by them.
23.34 Aged Care Accommodation Bond Trust
(1) The Secretary may:
(a) establish the Aged Care Accommodation Bond Trust (the Trust); and
(b) establish, and vest in the Trust, the Aged Care Accommodation Bond Fund (the Fund); and
(c) establish the Aged Care Accommodation Bond Board (the Board); and
(d) until the Board is established, make rules (the rules) for the operation of the Trust, the Fund, the activities of the Board and the scheme manager.
(2) The purpose of the Trust is:
(a) to hold refundable accommodation bond balances in a secure way; and
(b) to ensure timely refunds to care recipients; and
(c) to ensure payment of retention amounts and income to approved providers; and
(d) to facilitate improvement in the quality of residential aged care accommodation.
(3) The rules:
(a) must be consistent with the matters mentioned in Schedule 2; and
(b) may provide for other matters; and
(c) must not be inconsistent with the Act.
(1) The Secretary may appoint the first trustee of the Trust (the trustee) on conditions decided by the Secretary.
(2) The trustee must have sufficient skills and experience to administer the trust, but not be a Commonwealth officer.
(3) The trustee has the functions mentioned in Schedule 2.
23.36 Aged Care Accommodation Bond Board
(1) The members of the Board are to be appointed by the Minister.
(2) The Minister is to appoint a member of the Board to be its chairperson.
(3) The Board has the functions mentioned in Schedule 2.
23.37 Scheme manager
(1) The Secretary may appoint the first scheme manager (the scheme manager) on conditions decided by the Secretary.
(2) The scheme manager must have sufficient skills and experience to manage the Fund, but not be a Commonwealth officer.
(3) The scheme manager has the functions mentioned in Schedule 2.
An approved provider to which this Division applies must:
(a) register with the scheme manager before receiving from a care recipient an accommodation bond that includes a refundable lump sum; and
(b) if the provider’s registration under Division 4 is cancelled or revoked—apply to register with the scheme manager within 5 working days before the cancellation or revocation is due to take effect; and
(c) display, in a publicly accessible place on the premises of the provider’s residential care service, a copy of the provider’s current certificate of registration under this Division; and
(d) tell each incoming care recipient who pays, or agrees to pay, an accommodation bond that the bond is protected by this Division, and give the care recipient adequate information about the conditions of the protection; and
(e) comply with any requirements of the Board or scheme manager relevant to this Division, including requirements about:
(i) the form and content of resident or accommodation bond agreements;
(ii) keeping records of accommodation bonds;
(iii) financial and other information;
(iv) audit and the scheme manager’s right of access to the approved provider’s premises to carry it out; and
(f) comply with any requirements about conditions related to the general prudential requirements that are to be included in resident agreements or accommodation bond agreements entered into by the registered provider; and
(g) subject to transitional arrangements for an approved provider who has a liability for money paid to the approved provider for residential care provided before 1 October 1997, include in an accommodation bond agreement, entered into by the approved provider with a care recipient, a direction to the care recipient to pay the bond to the trustee care of the scheme manager; and
(h) tell the scheme manager as soon as a care recipient leaves the approved provider’s residential care service
(i) charge for giving credit to a care recipient for payment of an accommodation bond only in accordance with the Act and these Principles.
(1) This section applies to an approved provider that:
(a) is registered under this Division; and
(b) registers with a sponsoring organisation under Division 4.
(2) The approved provider may require the scheme manager and the Trustee to transfer, in accordance with the requirements of the scheme under Division 4, accommodation bonds held for the approved provider.
(3) The costs of the transfer must not be paid by the Trustee or the care recipients.
(4) The approved provider must give to each care recipient whose accommodation bond is proposed to be tranferred adequate information about protection of accommodation bonds provided by the scheme under Division 4.
23.40 Compliance
(1) The scheme manager must immediately tell the Secretary if the scheme manager becomes aware that a registered approved provider has failed to comply with a requirement of the Board for this Division.
(2) The Secretary must tell the scheme manager if an approved provider is given a notice of non-compliance under Division 67 or 68 of the Act.
Division 4—Specific prudential requirements
23.41 Purpose of Division (Act, s 57-5)
(1) This Division specifies:
(a) the criteria for the approval of prudential requirements relating to specific prudential arrangements; and
(b) the requirements that the Secretary must comply with in considering whether to approve an application for the approval of prudential requirements.
(2) This Division also deals with:
(a) the operation of an approval of specific prudential requirements; and
(b) cancelling an approval.
23.42 Criteria for approval of prudential requirements
(1) The prudential requirements must require an organisation (the sponsoring organisation) to:
(a) issue a certificate of registration to each approved provider (a registered provider) registered with the organisation; and
(b) keep a register of registered providers and details of penalties imposed for non-compliance; and
(c) ensure that the register is available at the organisation’s place of business, or main place of business, during its business hours for inspection by anyone without charge; and
(d) ensure that a system of approved guarantees, indemnities, insurance or other undertakings is in place so that unrefunded accommodation bond balances owed to care recipients or former care recipients of registered approved providers are repaid within the time required under subsection 57-21 (3) of the Act; and
(e) provide information, on request, to care recipients and prospective care recipients of a registered provider about the provider’s current and past compliance with the specific prudential arrangements; and
(f) ensure that a procedure is in place for prompt acknowledgment of payment of accommodation bonds; and
(g) report to the Board, quarterly or more often as required by the Board, on compliance with each aspect of the arrangements, and include in the report:
(i) a list of the names and addresses of all approved providers that are registered providers at the end of the reporting period; and
(ii) a list of the names and addresses of all approved providers that became, or stopped being, registered providers during the reporting period; and
(iii) the amount of refundable accommodation bond balances covered by the arrangements at the end of the reporting period; and
(iv) a statement certified by a responsible officer of the sponsoring organisation of the adequacy of liquidity and underwriting protection for refundable accommodation bond balances; and
(v) details of each non-compliance with the arrangements by a registered provider; and
(vi) details of any calls on the underwriting arrangements during the reporting period; and
(h) ensure that it has adequate information, to fulfil its reporting requirements, from registered providers about any liabilities and potential liabilities under the arrangements; and
(i) give the approved provider, the Department and the scheme manager at least 10 working days notice if an approved provider is to stop being a registered provider; and
(j) get the approval of the Secretary before making any changes to the arrangements mentioned in the Secretary’s approval of the prudential requirements; and
(k) tell the Secretary if a registered provider fails to comply with the prudential requirements; and
(l) arrange for transfer to the Trust or another approved sponsoring organisation accommodation bond balances that are no longer to be protected by the sponsoring organisation’s arrangements.
(2) The prudential requirements must require a registered provider to:
(a) comply with any requirements of the sponsoring organisation relevant to the specific prudential arrangements, including requirements about:
(i) liquidity and underwriting arrangements for particular residential care services or groups of residential care services; and
(ii) the manner in which balances must be held; and
(iii) audit; and
(iv) disclosure of financial information; and
(v) time periods for notifying the organisation when an accommodation bond is paid or becomes repayable; and
(b) tell each incoming care recipient who pays an accommodation bond how the bond is protected; and
(c) comply with any requirements about conditions related to the protection that are to be included in accommodation bond agreements entered into by the registered provider; and
(d) display, in a publicly accessible place on the premises of the registered provider’s residential care service, a copy of the provider’s current certificate of registration under the arrangements; and
(e) register with the sponsoring organisation before receiving from a care recipient an accommodation bond that includes a refundable lump sum.
23.43 Requirements for considering whether to approve applications
(1) In considering whether to approve an application to operate specific prudential requirements, the Secretary must consider whether the proposed requirements will ensure repayment of refundable accommodation bond balances in accordance with the Act by:
(a) providing sufficient liquidity to ensure that accommodation bond balances are repaid within the time required by subsection 57-21 (3) of the Act; and
(b) underwriting the repayment of accommodation bond balances not held in liquid form; and
(c) ensuring that accommodation bond balances are invested securely and in accordance with paragraph 57-2 (n) of the Act; and
(d) covering at least the number of approved places that would achieve an acceptable spread of risk; and
(e) excluding approved providers who have previously defaulted on repayment of accommodation bond balances or their equivalent; and
(f) meeting the criteria mentioned in section 23.42.
(2) If the Secretary approves, under subsection 57-5 (2) of the Act, prudential requirements proposed by the organisation, the Secretary must specify in the approval the period, not longer than 3 years, for which the requirements are approved.
23.44 Cancellation of approval
(1) The approval of a sponsoring organisation’s prudential requirements may be cancelled on either of the following grounds:
(a) the organisation has not met its obligations under the specific prudential arrangements;
(b) the organisation has given the Department or the Board insufficient or inaccurate information about compliance with the arrangements.
(2) If the Secretary considers that a ground exists, the Secretary must give to the sponsoring organisation a written notice that:
(a) states that the Secretary proposes to cancel the approval; and
(b) states the ground for the proposed cancellation; and
(c) outlines the facts and other circumstances forming the basis of the ground; and
(d) invites the organisation to state in writing to the Secretary, within a stated time of at least 14 days after the notice is given to the organisation, why the approval should not be cancelled; and
(e) states that, if the organisation asks for an extension of the time, the Secretary may allow an extension.
(3) After considering any written statement made by the sponsoring organisation within the permitted time, the Secretary may, if satisfied that a ground exists, cancel the approval by written notice given to the organisation.
23.45 AAT review of decision to cancel approval
Application may be made to the Administrative Appeals Tribunal for the review of a decision by the Secretary under section 23.44 to cancel an approval.
23.46 Transfer rights
(1) This section applies to an approved provider that:
(a) is registered under this Division; and
(b) registers with the scheme manager under Division 3.
(2) The approved provider may require the sponsoring organisation to transfer, in accordance with the requirements of the scheme under Division 3, accommodation bonds held for the approved provider.
(3) The costs of the transfer must not be paid by the Trustee or the care recipients.
(4) The approved provider must give to each care recipient whose accommodation bond is proposed to be tranferred adequate information about protection of accommodation bonds provided by the scheme under Division 3.
Division 5—Contents of accommodation bond agreements
23.47 Purpose of Division (Act, s 57-9)
This Division specifies additional matters that must be set out in an agreement for it to be an accommodation bond agreement.
23.48 Amount of accommodation bond—no financial hardship
(1) This section applies if the care recipient is not a concessional resident and an accommodation bond is not paid because the approved provider or care recipient has applied to the Secretary for a determination, under subsection 57-14 (1) of the Act, that the care recipient must not be charged an accommodation bond because paying the accommodation bond would cause the care recipient financial hardship.
(2) The accommodation bond agreement must state the amount of accommodation bond payable by the care recipient if:
(a) the Secretary declines to make the determination; or
(b) the determination is made but later ceases to be in force.
23.49 Retention amounts and interest, or interest equivalent, charges
(1) The accommodation bond agreement must state, in dollar terms, the amount of each retention amount that will be deducted from the accommodation bond balance.
Note: For retention amounts, see s 57-20 of the Act, and for maximum retention amounts, see s 23.71 of these Principles.
(2) The agreement must state:
(a) the rate of interest or interest equivalent payable if the accommodation bond:
(i) is paid wholly or partly as a lump sum after the due date; or
(ii) is paid by periodic payments; or
(iii) has not been paid when it was due to be paid; and
(b) the way interest, or interest equivalent, charges are calculated; and
(c) the total amount of interest, or interest equivalent, charges payable under the agreement:
(i) if it can be calculated when the agreement is made; and
(ii) assuming that the care recipient will make all payments when they are due; and
(d) the retention amounts payable if the care recipient is provided with care for not more than 2 months; and
(e) the frequency at which interest, or interest equivalent, charges will be debited.
(1) This section applies if the care recipient elects to pay the accommodation bond wholly or partly by periodic payments.
(2) The accommodation bond agreement must state:
(a) the amount of the lump sum equivalent; and
(b) the amount and frequency of the periodic payments; and
(c) the components of each periodic payment representing:
(i) retention; and
(ii) interest.
23.51 Conversion from periodic payments to payment by lump sum
(1) This section applies if the care recipient elects to pay the accommodation bond wholly or partly by periodic payments.
(2) The accommodation bond agreement must state that the care recipient may, at any time, pay as a lump sum all or part of the lump sum equivalent.
23.52 Providing information to third parties
(1) The accommodation bond agreement must state that, if a care recipient wishes to move from one residential care service (the original service) to another residential care service (the new service), the approved provider of the original service may ask the care recipient for permission to provide the information mentioned in subsection (2) to the approved provider of the new service.
(2) The information is:
(a) whether the care recipient has agreed to pay an accommodation bond; and
(b) if so, the amount agreed and, if the care recipient has agreed to pay amount wholly or partly by periodic payments, the lump sum equivalent; and
(c) the period remaining during which, under section 57-20 of the Act, retention amounts may be deducted from the care recipient’s accommodation bond balance; and
(d) amounts that may be deducted from the accommodation bond balance.
Division 6—Making financial hardship determinations
23.53 Purpose of Division (Act, s 57-14)
This Division specifies:
(a) matters relevant to the making of a determination by the Secretary that a person must not be charged an accommodation bond because payment of an accommodation bond would cause the person financial hardship; and
(b) some circumstances constituting financial hardship.
23.54 Income assessment required before determination made
The Secretary may make a determination for a care recipient only if the care recipient’s income has been assessed under the Social Security Act 1991 or Veterans’ Entitlements Act 1986.
A determination may be expressed to take effect from a date before it is made.
23.56 Circumstances constituting financial hardship
(1) In this section:
unrealisable asset has the meaning given by subsections 11 (12), (13) and (14) of the Social Security Act 1991.
(2) Payment of an accommodation bond would cause a person financial hardship if, for example:
(a) the payment would cause hardship to the person’s partner or a dependent child of the person; or
(b) the value of the person’s assets, other than unrealisable assets, is less than the minimum permissible assets level.
Division 7—Revoking financial hardship determinations
23.57 Purpose of Division (Act, s 57-15)
This Division specifies the circumstances in which the Secretary may revoke a determination under section 57-14 of the Act.
Note: For provisions about determinations under section 57-14 of the Act, see Division 6 of this Part.
23.58 Revocation of a determination
The Secretary may revoke a determination if the Secretary is satisfied that:
(a) the circumstances of the care recipient have changed; and
(b) paying an accommodation bond would not cause the care recipient financial hardship.
Example of change of circumstances for paragraph (a):
Assets of the care recipient that were unrealisable assets are no longer assets of that kind.
23.59 Purpose of Division (Act, s 57-17)
This Division specifies matters relating to payment of an accommodation bond wholly or partly by periodic payments.
23.60 Frequency of periodic payments
(1) The care recipient must agree with the approved provider on the frequency of periodic payments.
(2) The frequency of periodic payments cannot be more often than weekly.
23.61 Agreement on periodic payments
(1) The amount of a periodic payment, worked out in accordance with section 23.62, must be agreed between the care recipient and approved provider.
(2) A periodic payment for the month when the care recipient leaves the service may be charged at a rate for the full month.
23.62 Amount of periodic payments
(1) In this section:
IR, for a care recipient, means the interest rate stated in the care recipient’s accommodation bond agreement.
LSE, for a care recipient, means amount of the care recipient’s lump sum equivalent.
NPP, for a care recipient, means the number of periodic payments payable by the care recipient in the relevant year.
RC, for a care recipient, means the amount of the retention component stated in the care recipient’s accommodation bond agreement.
(2) The amount of a periodic payment must be worked out in accordance with the following formula:
(3) The accommodation bond agreement must state:
(a) an interest rate that is not more than the Treasury Note yield for the month 2 months before the month in which the entry day happens; and
(b) the amount of the retention component worked out in accordance with:
(i) if no part of the accommodation bond is paid as a lump sum—subsection (4); or
(ii) if part of the accommodation bond is paid as a lump sum—subsections (4) and (5) and, if applicable, (6).
(4) The amount of the retention component must not exceed the maximum retention amount that may be deducted under section 23.71, during the year beginning on the entry day, from the amount that would have been the accommodation bond balance if the care recipient had paid the whole of the accommodation bond as a lump sum.
(5) If part of the accommodation bond is paid as a lump sum, the amount of the retention component of the periodic payments is reduced, on a proportionate basis, in accordance with the ratio of the lump sum equivalent to the amount of the accommodation bond.
(6) However, if the lump sum is sufficient to cover the total of the retention amounts for the period of 5 years for the whole of the bond, including the lump sum equivalent, and the care recipient elects:
(a) the amount of the retention component is nil; and
(b) the total of the retention amounts, including the retention component that would otherwise be payable on the lump sum equivalent, may be deducted from the amount paid as a lump sum.
(7) For subsection (6):
(a) the period of 5 years begins on the entry day; and
(b) the care recipient’s election must be made in writing and given to the approved provider.
23.63 Respite care periods to be disregarded
Periodic payments are not payable for any period when the care recipient is in respite care.
23.64 Minimum amount of periodic payments
(1) The minimum amount of periodic payments payable by the care recipient is the amount representing the periodic payments that would have been payable for 3 calendar months.
(2) The approved provider may charge the full amount of a periodic payment that is payable for the month in which the care recipient leaves the service.
Division 9—Rights of approved providers to retention of income
23.65 Purpose of Division (Act, s 57-18)
This Division:
(a) specifies a method for working out, in certain circumstances, the interest equivalent; and
(b) provides that, in specified circumstances, an approved provider must not retain income derived, from the investment of the balance, in respect of a specified period.
(1) If the care recipient pays the accommodation bond wholly or partly as a lump sum after the due date, the interest equivalent is the amount worked out in accordance with the following formula:
where:
IR is:
(a) the interest rate mentioned in the accommodation bond agreement; and
(b) not more than the Treasury Note yield for the month 2 months before the month in which the entry day happens;
LS is the amount of the lump sum;
ND is the number of days in the period:
(a) beginning on the due date; and
(b) ending on the day when the accommodation bond was paid wholly or partly as a lump sum.
(2) If:
(a) the care recipient is provided with care for 2 months or less; and
(b) the care recipient pays the accommodation bond wholly or partly as a lump sum; and
(c) the amount paid as a lump sum is refunded to the care recipient within 3 months after the entry day;
the interest equivalent is the amount worked out in accordance with the following formula:
where:
IR is:
(a) the interest rate mentioned in the accommodation bond agreement; and
(b) not more than the Treasury Note yield for the month 2 months before the month in which the entry day happens;
LS is the amount of the lump sum;
ND is the number of days in the period:
(a) beginning on the day when the lump sum was refunded; and
(b) ending 3 months after the entry day.
(3) If the care recipient:
(a) leaves the residential care service within 2 months after entering the service; and
(b) has agreed to pay the accommodation bond wholly or partly as a lump sum; and
(c) does not pay the lump sum before leaving the residential care service;
the interest equivalent is the amount worked out in accordance with the following formula:
where:
IR is:
(a) the interest rate mentioned in the accommodation bond agreement; and
(b) not more than the Treasury Note yield for the month 2 months before the month in which the entry day happens;
LS is the amount of the lump sum;
ND is the number of days in 3 calendar months from the day the care recipient entered the residential care service.
(4) If subsections (1) and (2) both apply, the interest equivalent is the total of the amounts worked out in accordance with those subsections.
(5) The maximum period for which a retention component may be included in periodic payments is 5 years.
(6) The approved provider may require payment of an amount less than the interest equivalent.
23.67 Respite care periods to be disregarded
If the care recipient is transferred from respite care, the approved provider must not retain income derived, from investment of the care recipient’s accommodation bond balance, in respect of the period when the care recipient is in respite care.
Division 10—Deduction from accommodation bond balance of interest on amounts owed
23.68 Purpose of Division (Act, s 57-19)
This Division provides for the working out of amounts, representing interest on amounts owed to an approved provider by a care recipient under an accommodation bond, resident or extra service agreement, that the approved provider may deduct from the care recipient’s accommodation bond balance.
23.69 Interest on amounts owed
(1) The maximum rate of interest that the approved provider may charge must not exceed the rate of the Treasury Note yield for the month 2 months before the month when the care recipient entered the residential care service.
(2) Interest may only be charged for the period that:
(a) begins on the day after the day 1 month after the day when the amount becomes payable under the accommodation bond, resident or extra service agreement; and
(b) ends on the day when the amount owed to the approved provider is paid or the residential care service ceases to provide care to the care recipient (whichever is earlier).
Division 11—Rights of approved providers to retention amounts
23.70 Purpose of Division (Act, s 57-20)
The purpose of this Division is to state the method of working out the maximum retention amount that may be deducted by an approved provider from a care recipient’s accommodation bond balance.
23.71 Maximum retention amount
(1) The maximum retention amount that may be deducted, from an accommodation bond balance, during a year (the first year) beginning on the day, or a year (a later year) beginning on the anniversary of the day, when the care recipient enters the residential care service for an accommodation bond is:
(a) if the accommodation bond is not more than X—10% of X; or
(b) if the accommodation bond is more than X but not more than Y—10% of the accommodation bond; or
(c) if the accommodation bond is more than Y—10% of Y.
(2) However, despite subsections (3) and (4), the maximum retention amount for the care recipient for a later year is the same as the maximum retention amount for the first year.
(3) In subsection (1):
X is:
(a) for a year beginning in the financial year beginning on 1 July 1997—$13,500; or
(b) for a year beginning in a later financial year—the amount declared under subsection (4) for the financial year.
Y is:
(a) for a year beginning in the financial year beginning on 1 July 1997—$26,000; or
(b) for a year beginning in a later financial year—the amount declared under subsection (4) for the financial year.
(4) Before or as soon as practicable after the beginning of each later financial year, the Secretary must, by notice in the Gazette and in accordance with section 23.72, declare the amounts of X and Y for the financial year.
23.72 Calculation of indexation increase
(1) In this section:
CPI number means the All Groups Consumer Price Index number (that is, the weighted average of the 8 Australian capital cities) published by the Australian Statistician.
earlier CPI number, for a financial year, means the CPI number for the last March quarter before the beginning of the financial year.
indexed element means the element X or Y mentioned in subsection 23.71 (3).
latest CPI number, for a financial year, means the CPI number for the March quarter in the financial year.
relevant amount, for an indexed element in a financial year, means the amount of the element in the financial year.
(2) If, for a financial year, the latest CPI number is more than the earlier CPI number, the amount of each indexed element is increased on 1 July of the next financial year.
(3) The amount of the increased indexed element is the amount worked out in accordance with the formula:
(4) If, apart from this subsection, the amount of an indexed element increased under this section would not be a multiple of $10, the amount is rounded to the nearest multiple of $10 (rounding $5 upwards).
(5) If, at any time, whether before or after the commencement of these Principles, the Australian Statistician publishes a CPI number for a March quarter in substitution for a CPI number previously published for the quarter, the publication of the later CPI number is to be disregarded for this section.
(6) However, if, at any time, whether before or after the commencement of these Principles, the Australian Statistician changes the reference base for the Consumer Price Index, then, in applying this section after the change is made, regard is to be had only to numbers published in terms of the new reference base.
23.73 Maximum monthly retention amount
(1) The maximum monthly retention amount is worked out in accordance with the following formula:
where:
MRA is the maximum retention amount worked out in accordance with section 23.71.
(2) If, apart from this subsection, the monthly retention worked out under subsection (1) would not be a multiple of $5, the amount is rounded to the nearest multiple of $5 (rounding $2.50 upwards).
Division 12—Restriction on deduction of amounts
23.74 Purpose of Division (Act, s 57-20)
The purpose of this Division is to specify circumstances in which an approved provider must not deduct any amounts from a care recipient’s accommodation bond balance in respect of specified periods.
23.75 When amounts must not be deducted from accommodation bond balance
If the certification of the approved provider’s residential care service is suspended under paragraph 66-1 (i) of the Act, the approved provider must not be deduct any amounts from the accommodation bond balance in respect of the period when the suspension is in force.
Division 13—Period for deduction of retention amounts
23.76 Purpose of Division (Act, s 57-20)
The purposes of this Division are to specify:
(a) another period during which retention amounts may be deducted from a care recipient’s accommodation bond balance; and
(b) the method of working out another starting day for the period during which retention amounts may be deducted.
23.77 Period of suspension of certification to be disregarded
(1) This section applies if the certification of the approved provider’s residential care service is suspended under paragraph 66-1 (i) of the Act during the period that, apart from this section, applies under subsection 57-20 (4) of the Act.
(2) For that subsection, the period is specified that consists of 2 or more periods (subsidiary periods) worked out in accordance with subsections (3) and (4).
(3) A subsidiary period starts:
(a) for the first period—the day that, apart from this section, applies under section 57-20 (4) of the Act; or
(b) for a later period—the first day after the last subsidiary period when the certification ceases to be suspended.
(4) A subsidiary period ends when:
(a) the certification is suspended; or
(b) the subsidiary periods total 5 years.
23.78 Entry date if care recipient is transferred from respite care to permanent accommodation
(1) This section applies if the care recipient is transferred from respite care to permanent accommodation.
(2) The day of the transfer is the starting day of the period during which retention amounts is deducted from the care recipient’s accommodation bond balance.
Division 14—Information about accommodation bonds
23.79 Purpose of Division (Act, s 63-2)
The purpose of this Division is to specify circumstances in which an approved provider must give the Minister information about accommodation bonds.
23.80 Information about accommodation bonds to be given to the Minister
(1) If the Minister asks an approved provider, in writing, to give the Minister information about accommodation bonds that the Minister needs to prepare a report under section 63-2 of the Act, the provider must comply with the request within the reasonable time specified by the Minister.
(2) The Minister must not ask for, and the approved provider must not give, personal information relating to a person.
Note: The disclosure of personal information is, generally speaking, prohibited (see Act, s 62-1).
Division 15—Purpose of Part
23.81 Purpose of Part (Act, s 57-1)
This Part (including the general prudential requirements and the prudential scheme set out under them) is, with the provisions of the Act, intended to deal comprehensively and exclusively with all disclosure and prudential requirements about payment and protection of accommodation bonds.
23.82 Purpose of Part (Act, s 58-1)
This Part specifies the method of working out an amount to be added to the maximum daily amount of the resident fee set under section 58-2 of the Act.
23.83 Remote area—amount to be taken into account
(1) For a residential care service located in a remote area, the amount worked out in accordance with the following formula is specified:
(2) In this section:
remote area has the meaning given by section 14 of the Social Security Act 1991.
remote area amount means the amount mentioned in column 4 (basic allowance per fortnight) of item 1 (a person whose family situation is ‘Not a member of a couple’) of Table H (remote area allowance) set out in section 1064-H2 of the Social Security Act 1991.
Note: Paragraph 58-1 (a) of the Act refers to the resident fee in respect of any day, and the remote area amount is a fortnightly amount. The formula gives an amount equal to 85% of the daily equivalent of the fortnightly amount.
Part 6—Requirements for resident agreements
23.84 Purpose of Part (Act, s 59-1)
This Part sets out requirements that a resident agreement entered into between a care recipient and an approved provider must comply with.
23.85 Requirements for a resident agreement
A resident agreement must comply with the following requirements:
(a) the agreement must be signed by the approved provider and by the care recipient or care recipient’s representative;
(b) the agreement must provide that if, within 14 days after signing, the care recipient or his or her representative tells the provider, in writing, that the care recipient wishes to withdraw from the agreement:
(i) the agreement becomes void; and
(ii) the care recipient is liable for the fees and charges payable for any period when the care recipient was in the residential care service under the agreement; and
(iii) the provider is liable to refund any other amount paid by the care recipient under the agreement;
(c) the agreement must provide for its variation by mutual consent, following adequate consultation, of the care recipient and provider;
(d) the agreement must provide for its termination on 7 days’ written notice given by the care recipient to the provider;
(e) the care recipient or his or her representative must be told of, and helped to understand, the terms of the agreement, including the care recipient’s rights and obligations, the services to be provided, and the fees and other charges;
(f) the agreement must treat the care recipient and provider as equals and clearly set out the rights and obligations of each party;
(g) the agreement must provide for the care recipient’s right to occupy a place at the residential care service, beginning on the day of the agreement or a stated later day, for the period stated in the agreement or for the remainder of the care recipient’s lifetime;
(h) the agreement must include any other matters negotiated between the approved provider and the care recipient (including, if applicable, costs);
(i) the agreement must be expressed in plain language and be readily understandable.
Note: An agreement between a person and the proprietor of an approved nursing home, or an approved operator of a hostel, may be taken to be a resident agreement—see sections 69 and 71 of the Aged Care (Consequential Provisions) Act 1997.
Part 7—Responsibilities relating to community care fees
Division 1—Refund of community care fees
23.86 Purpose of Division (Act, s 60-1)
This Division specifies the provisions applying to the refund of fees if the care recipient dies or provision of community care ceases.
23.87 Cessation of eligibility as a care recipient for community care
Any refundable fee must be paid as soon as practicable to:
(a) the care recipient or his or her representative; or
(b) a person authorised to receive it for the care recipient’s estate.
Examples of authorised persons for paragraph (b):
The care recipient’s executor or legal personal representative.
Division 2—Maximum daily amounts
23.88 Purpose of Division (Act, s 60-2)
This Division specifies matters for determining the maximum daily amount of community care fees payable by a care recipient.
23.89 Determination of levels of maximum daily amounts of community care fees
(1) This section applies if an approved provider requires a care recipient to pay ongoing community care fees.
(2) If the care recipient’s income does not exceed the amount of the maximum basic rate of pension payable from time to time under Part 2.2 of the Social Security Act 1991 to persons classed as ‘Not a member of a couple’, the fees must be determined so that they do not exceed 17.5% of that maximum basic rate of pension, unless subsection (4) applies.
(3) If the care recipient’s income exceeds the amount of maximum basic rate of pension, the fees must be determined so that they do not exceed an amount equal to the amount of fees permitted under subsection (2) plus 50% of the amount by which the care recipient’s income exceeds the amount of maximum basic rate of pension, unless subsection (4) applies.
(4) If:
(a) the care recipient receives a pension under the Social Security Act 1991 and the care recipient’s family situation under Part 2.2 of that Act is classified as ‘Partnered (partner getting pension or benefit)’; or
(b) the care recipient receives an equivalent pension under the Veterans’ Entitlements Act 1986;
the fees must be determined so that they do not exceed an amount equal to the amount of fees permitted under subsection (2) plus 50% of the amount by which the care recipient’s income exceeds the amount of maximum basic rate of pension payable to the care recipient.
(5) In determining fees under this section, income tax and medicare levy must be deducted, but no account must be taken of any amounts of rent assistance, pharmaceutical allowance and telephone allowance payable under the Social Security Act 1991 or the Veterans’ Entitlements Act 1986.
Division 3—Community care fees and services
23.90 Purpose of Division (Act, s 56-2)
This Division specifies other responsibilities of approved providers about community care fees.
23.91 Nature and level of community care fees for care and services
(1) An approved provider may charge a care recipient only the following kinds of fees:
(a) ongoing fees;
(b) fees for the provision of major home maintenance services (including major home modification);
(c) fees for the provision or arrangement of any care, other than community care, that is part of the agreed care plan.
(2) The approved provider must not levy or impose community care fees for the care recipient on anyone else, but someone else may choose to pay the care recipient’s community care fees.
(3) The approved provider must suspend the provision to the care recipient of community care services for a period (the suspension period) that is longer than the period permitted under the Act for the suspension of community care services, if the care recipient gives the provider written notice:
(a) stating the length of the suspension period; and
(b) asking for the suspension of the services during the suspension period mentioned in the agreement; and
(c) agreeing to pay the ongoing fee chargeable by the approved provider during the suspension period.
(4) The approved provider must not charge the care recipient, during the suspension period, an ongoing fee that exceeds:
(a) the care recipient’s usual ongoing fee; or
(b) if another care recipient receives the services of the care recipient during all or part of the suspension period—the amount of any difference (while the services are being provided to the other care recipient) between the first-mentioned care recipient’s usual ongoing fee and the amount of fees and recurrent subsidy that the approved provider receives for the other care recipient.
(5) The care recipient may, by written notice to the approved provider, extend or shorten the suspension period.
(6) However if the suspension period is shortened to a period not longer than the period permitted under the Act, subsection (4) does not apply.
23.92 Community care fees—inability to pay and reduction for financial hardship
(1) An approved provider must not refuse a community care service to a care recipient because of the care recipient’s inability to pay a community care fee.
(2) In deciding the care recipient’s capacity to pay, regard must be had to any exceptional and unavoidable expenses of the care recipient.
Example of exceptional and unavoidable expense:
High pharmaceutical bills.
(3) The amount of the care recipient’s expenses must be reviewed at least annually, or at such shorter intervals as the care recipient reasonably asks.
(4) The approved provider need not seek information about the care recipient’s income to work out the amount of the care recipient’s ongoing fees, but the approved provider must:
(a) take account of all information given by the care recipient; and
(b) tell the care recipient about the effect of this subsection.
Part 8—Requirements for community care agreements
23.93 Purpose of Part (Act, s 61-1)
This Division specifies requirements that a community care agreement entered into between a care recipient and an approved provider must comply with.
23.94 Entry into a community care agreement
(1) A community care agreement must be offered to a prospective care recipient before a date for the start of community care services is agreed.
(2) The approved provider must provide the care recipient with guidance (and, if appropriate, interpreter services) to understand the terms and effect of the proposed agreement.
23.95 Provisions of a community care agreement
A community care agreement must comply with the following requirements:
(a) the agreement must include a clear statement of the charges payable by the care recipient and how amounts of each charge are to be worked out;
(b) the agreement must allow the care recipient to suspend provision of community care;
(c) the agreement must state a date for the start of the community care services;
(d) the agreement must provide conditions under which either party may terminate the community care services;
(e) the agreement must provide for the giving of financial information to the care recipient;
(f) the agreement must state the community care that the care recipient has been assessed as requiring;
(g) the agreement must state the care recipient’s rights in relation to decisions about the kind of community care that the care recipient is to receive;
(h) the agreement must include a guarantee that all reasonable steps will be taken to protect the confidentiality, so far as legally permissible, of information provided by the care recipient, and details of use to be made by the provider of the information;
(i) the agreement must state that the care recipient is entitled to make, without fear of reprisal, any complaint about the provision of community care, and state the mechanisms for making such a complaint;
(j) the agreement must provide for the provision by the provider, within 7 days after the care recipient asks, of:
(i) a clear and simple presentation of the financial position of the community care service, including the costs of community care, that explains any ongoing fees payable by the care recipient; and
(ii) a copy of the most recent version of the provider’s audited accounts;
(k) the agreement must be expressed in plain language and be readily understandable.
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