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2004-2005
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRAIA
HOUSE OF REPRESENTATIVES
AGED CARE AMENDMENT (EXTRA SERVICE) BILL 2005
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Ageing, the Hon Julie Bishop, MP)
AGED CARE AMENDMENT (EXTRA SERVICE) BILL 2005
OUTLINE
This Bill gives legislative effect to a measure announced in the 2005-06 Budget.
An aged care service with extra service status allows residents to choose, and pay for, a higher
than average level of hotel-type services, including accommodation, the range and quality of
food and the provision of non-care services such as recreational and personal interest
activities.
This measure will provide more certainty for extra service providers, particularly in relation to
their capital-raising requirements. The Bill will amend Part 2.5 of the Aged Care Act 1997 by
removing the current requirement that extra service providers need to reapply for extra service
status every five years.
Extra service status is granted by the Secretary of the Department of Health and Ageing under
Part 2.5 of the Aged Care Act 1997 (the Act).
Subsection 33-2(1) of the Act provides that extra service status for a residential care service,
or a distinct part of a residential care service, expires on its expiry date, unless renewed under
Division 34 of the Act. Subsection 33-2(2) provides that, subject to subsection (3), the expiry
date for extra service status is 5 years or such other period as is specified in the Extra Service
Principles. The period is measured from the latest day on which the extra service status took
effect or was renewed. Subsection 33-2(3) allows the Secretary to extend the period of grant
of extra service status for up to 12 months.
Section 31-2 provides for extra service status to continue after the expiry date in limited
circumstances. Essentially, it protects the rights of care recipients who have formerly received
extra services. Section 31-2 ensures that these care recipients continue to receive the same
level of hotel-type services (under the previous arrangements with the provider) until they
leave the aged care home. However, providers cannot admit new care recipients on an extra
service basis.
This Bill will remove the expiry date for extra service. It will also remove all provisions
relating to the renewal of extra service under Division 34 and the extension of the period of
extra service under subsection 33-2(3). It will also remove the ability to "continue" extra
service under section 31-2 but will provide for extra service to "continue" for residents already
receiving the benefit of section 31-2. The Bill will also make consequential amendments to
other provisions within the Aged Care Act 1997.
The Extra Service Principles made by the Minister under subsection 96(1) of the Aged Care
Act 1997 will also be amended as a consequence of this Bill.
FINANCIAL IMPACT
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There is no financial impact.
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AGED CARE AMENDMENT (EXTRA SERVICE) BILL 2005
NOTES ON CLAUSES
Clause 1 Short title
This clause provides that the short title of the Act may be cited as the Aged Care Amendment
(Extra Service) Act 2005.
Clause 2 - Commencement
This clause provides that the Act will commence, or will be taken to have commenced, on
1 July 2005.
Clause 3 - Schedule
This clause provides that the Act (the Aged Care Act 1997) that is specified in the Schedule to
the Act will be amended as set out in the applicable items in the Schedule. Any other item has
effect according to its terms.
SCHEDULE 1 EXTRA SERVICE
Item 1
Item 1 provides for a consequential amendment to paragraph 31-1(a) to remove the reference
to Division 34. Division 34, which provides for how extra service status is to be renewed, is
to be omitted under Item 5.
Item 2
Item 2 provides for the repeal of section 31-2. Section 31-2 provides for the continuation of
extra service status in limited circumstances after it has expired. As Item 4 removes the expiry
date for extra service, there is no need to provide for its continuation.
Item 3
Item 3 provides for a consequential amendment to repeal paragraph 33-1(a) to remove the
reference to extra service expiring under section 33-2. Section 33-2 is to be repealed under
Item 4.
Item 4
Item 4 provides for the repeal of section 33-2. Section 33-2 provides for extra service to
expire on the expiry date. Its removal means that extra service, once granted, will continue
unless it lapses under section 33-3, is revoked or suspended under section 33-4 or Part 4.4, or
if the residential care service fails to meet its accreditation or certification requirements or if an
event specified in the Extra Service Principles occurs.
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Item 5
This Item provides for the repeal of Division 34. Division 34 provides for the renewal of extra
service status. As Item 4 removes the expiry date for extra service, there is no need to provide
for its renewal.
Item 6
Item 6 provides for a consequential amendment to paragraph 35-1(2)(c) to remove the
reference to Division 34. Division 34, which provides for how extra service status is to be
renewed, is to be omitted under Item 5.
Item 7
Item 7 provides for a consequential amendment to the note under subsection 36-3(1) to
remove the reference to subsection 34-1(3). Division 34 is to be repealed under Item 5.
Item 8
Item 8 provides for paragraph 63-1(1)(i) to be repealed and a replacement paragraph
substituted. As Item 5 provides for the repeal of Division 34, the replacement paragraph does
not refer to the renewal of extra service status nor to section 34-5.
Item 9
Item 9 provides for a consequential amendment to repeal Item 32 of the table in Section 85-1.
Item 32 of the table provides for the decision "To refuse to make a determination to extend
extra service status" under subsection 31-2(1) to be a reviewable decision. As Item 2 of this
Schedule provides for the repeal of section 31-2, there is no need to provide for the decision
to be reviewed.
Item 10
This Item amends the definition of "expiry date" in the Dictionary in Schedule 1 of the Aged
Care Act 1997. It removes the references to the expiry date under section 33-2 as Item 4
provides for section 33-2 to be repealed.
Item 11
This Item provides transitional arrangements to ensure the rights of certain aged care residents
are protected. Extra service could be continued under section 31-2 past the expiry date in
limited circumstances for these residents. This Item provides that if extra service had been
continued under section 31-2, it will not cease due to the repeal of section 31-2 under Item 2.
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