WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Aged Care Income Testing Bill 1997
Date Introduced: 27 February 1997
House: House of Representatives
Portfolio: Health and Family Services
Commencement: Royal Assent
To establish an administrative procedure to support the income
testing arrangements necessary for the anticipated implementation
of the Aged Care Bill 1997.
As part of the 1996 Budget package, the Minister for Health and
Family Services introduced the Aged Care Bill 1997 on 26 March
1997. This Bill proposes a restructure of the existing programs
funded under the Aged or Disabled Persons Care Act 1954,
into a new residential care system.
The Aged Care Income Testing Bill 1997 will allow the Department
of Social Security and the Department of Veterans' Affairs to
commence income testing residents in nursing homes and hostels so
that they can be advised in advance of 1 July 1997 about charges
they will face when the Aged Care Bill 1997 is passed.(1) The Aged
Care Income Testing Bill only allows income assessment to be
undertaken and will be overtaken by the substantive income testing
provisions found in the Aged Care Bill 1997.
For a comprehensive explanation of the Aged Care Bill 1997 refer
to the Parliamentary Library's Digest No. 132 1996 97 and the
Current Issues Brief No. 27 1996 97, entitled Proposed changes
to institutional residential aged care in Australia.
The bill consist of 6 parts. The most significant are as
follows:
Part 2 - Determination of ordinary income
Clause 5 allows the Secretary of the Department
of Health and Family Servicesto determine in writing the ordinary
income ofnursing home or hostel residents. The Secretary may
delegate this power to the Secretary of the Department of Veterans
Affairs, the Secretary of the Department of Social Security or both
(clause 20).
In order to make the determination, the Secretary may request
information from the resident, the person acting for the resident
or any other person who may have appropriate information
(clause 6). The Explanatory Memorandum points out
that a person is not obliged to provide this information.(2)
Ordinary income is calculated according to the existing
calculators for determining entitlement to social security and
veterans pensions and benefits found in the Social Security Act
1991 and the Veterans Entitlement Act 1986
(clause 7).
Clause 9 provides that the Secretary must
notify residents in writing of any determination of ordinary income
together with reasons for the determination and any related
information.
Part 3 - Reconsideration and review of ordinary income
determinations
A person whose interests are affected by a determination made
under the Veterans'Entitlement Act 1986 is entitled to
request the Secretary of the Department of Health and Family
Services to reconsider the decision. The Secretary must reconsider
the decision and either confirm, vary or set aside and substitute a
new decision (clause 11). The Secretary may
delegate this power to the Secretary of the Department of Veteranss
Affairs (clause 20).
If no notification is given within ninety days of the review
application, the decision is taken to be a confirmation of the
original determination (clause 11(7)).
An application may be made to the Administrative Appeals
Tribunal for the review of a decision that has been confirmed,
varied or set aside by the Secretary (clause
14).
Determinations of ordinary income made under the Social
Security Act 1991 are reviewable under that Act through an
amendment provided in Schedule 1 of the Bill.
Review processes for determinations made under the Social
Security Act 1991 differ from those made under the
Veterans Entitlement Act 1986in that they provide an
additional tier of review to the Social Security Appeals Tribunal
(Schedule 1,item 3).
Part 4 - Protection of information
Part 4 prohibits the disclosure of any personal information
obtained for the purposes of income determination.
If Departments exchange information for the purposes of income
determination of residents, they must not make a record of,
disclose or use it for any other purposes (Clause
17).
- Second Reading Speech, Aged Care Income Testing Bill 1997.
- Explanatory Memorandum, Aged Care Income Testing Bill 1997:
1.
Mary Anne Neilsen
6 May 1997
Bills Digest Service
Information and Research Services
This Digest does not have any official legal status. Other
sources should be consulted to determine whether the Bill has been
enacted and, if so, whether the subsequent Act reflects further
amendments.
IRS staff are available to discuss the paper's contents
with Senators and Members and their staff but not with members of
the public.
ISSN 1328-8091
© Commonwealth of Australia 1997
Except to the extent of the uses permitted under the
Copyright Act 1968, no part of this publication may be
reproduced or transmitted in any form or by any means, including
information storage and retrieval systems, without the prior
written consent of the Parliamentary Library, other than by Members
of the Australian Parliament in the course of their official
duties.
Published by the Department of the Parliamentary Library,
1997.
This page was prepared by the Parliamentary Library,
Commonwealth of Australia
Last updated: 9 May 1997
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