1998-99

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

SENATE

AGED CARE AMENDMENT (OMNIBUS) BILL 1999

SUPPLEMENTARY EXPLANATORY MEMORANDUM

(Requests for Amendments, and Amendments,
to be moved on behalf of the Government)

(Circulated by authority of the Minister for Aged Care,
the Hon. Bronwyn Bishop MP)

ISBN:  0642 407304

OUTLINE

These requests and amendments change the date of 1 July 1999 to date of commencement where 1 July 1999 appears in the Schedules to the Aged Care Amendment (Omnibus) Bill 1999.  Amendments are necessary to fully implement the Budget initiative to exempt those people who were residents of nursing homes when the Aged Care Act 1997 was introduced from paying an accommodation charge on moving to another facility. 

The amendments ensure that people who became charge exempt residents after 1 July 1999 but before the passage of the Aged Care Amendment (Omnibus) Bill 1999 are covered by the provisions exempting the principal home and rental income earned on a principal home to pay for accommodation charges from the pension income and asset tests.

FINANCIAL IMPACT

There may be a small financial impact on the Departments of Family and Community Services and Veterans’ Affairs.  This will occur where any pensioner care recipients move, pay a charge and commence renting between 1 July 1999 and the passage of the legislation.  The rental income earned by these care recipients needs to be exempted from the pensions income test and the value of the home from the pensions asset test.  This will ensure that pensioner care recipients continue to receive the full amount of pension and are not disadvantaged due to the delay in implementation of the legislation.

NOTES ON CLAUSES

Requests for Amendment

Request for Amendment (1)

This amendment amends Schedule 2, item 16, page 29, line 12 to change the date in the item from “1 July 1999” to “the commencement of this item”.  This amendment ensures that people who became charge exempt residents after 1 July 1999 but before the passage of the Aged Care Amendment (Omnibus) Bill 1999 are covered by this item.

Request for Amendment (2)

This amendment amends Schedule 2, item 16, page 29, lines 13 and 14 to change the date of this item affecting charge exempt residents from “1 July 1999” to “the commencement of this item”. This amendment ensures that rental income is not included in the pension test for people who became charge exempt residents after 1 July 1999 but before the passage of the Aged Care Amendment (Omnibus) Bill 1999.

Request for Amendment (3)

This amendment amends Schedule 2, item 16, page 29, lines 30 and 31 to change the date in this item affecting charge exempt residents from “1 July 1999” to “the commencement of this item”. This amendment ensures this item applies to people who received rent on their principal home for the period after 1 July and before the passage of the Aged Care Amendment (Omnibus) Bill 1999.

Request for Amendment (4)

This amendment amends Schedule 3, item 21, page 37, clause 17A, line 17 to change the date in this item affecting charge exempt residents from “1 July 1999” to “the commencement of this clause”. This ensures that people who became charge exempt residents after 1 July 1999 but before the passage of the Aged Care Amendment (Omnibus) Bill 1999 are covered by this item.

Request for Amendment (5)

This amendment amends Schedule 3, item 21, page 37, clause 17A, line 19 to change the date in this item affecting charge exempt residents from “1 July 1999” to “the commencement of this clause”. This amendment ensures this item applies to people who received rent on their principal home for the period after 1 July and before the passage of the Aged Care Amendment (Omnibus) Bill 1999.

Request for Amendment (6)

This amendment amends Schedule 3, item 21, page 38, clause 17A, lines 5 and 6 to change the date in this item affecting charge exempt residents from “1 July 1999” to “the commencement of this clause”. This amendment ensures this item applies to people who received rent on their principal home for the period after 1 July and before the passage of the Aged Care Amendment (Omnibus) Bill 1999.

NOTES ON CLAUSES

Amendments consequential upon Requests for Amendment

Amendment (1)

This amendment amends Schedule 2, item 16, page 29, line 10 to change the heading of this item affecting charge exempt residents from “1 July 1999” to “commencement”. This ensures that people who became charge exempt residents after 1 July 1999 but before the Aged Care Amendment (Omnibus) Bill 1999 is passed are covered by this item.

Amendment (2)

This amendment amends Schedule 3, item 21, page 37, clause 17A, lines 14 and 15 to change the heading of this item affecting charge exempt residents from “1 July 1999” to “the commencement of this item”. This ensures that people who became charge exempt residents after 1 July 1999 but before the Aged Care Amendment (Omnibus) Bill 1999 is passed are covered by this item.