Bills Digest 135 1996-97
Aged Care Income Testing Bill 1997
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
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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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