Commonwealth Consolidated Acts

AGED CARE ACT 1997 - SECT 44.20

  (1)   The compensation payment reduction for the care recipient in respect of the * payment period is the sum of all compensation payment reductions for days during the period:

  (a)   on which the care recipient is provided with residential care through the residential care service in question; and

  (b)   that are covered by a compensation entitlement.

  (2)   For the purposes of this section, a day is covered by a compensation entitlement if:

  (a)   the care recipient is entitled to compensation under a judgment, settlement or reimbursement arrangement; and

  (b)   the compensation takes into account the cost of providing residential care to the care recipient on that day; and

  (c)   the application of compensation payment reductions to the care recipient for preceding days has not resulted in reductions in subsidy that, in total, exceed or equal the part of the compensation that relates, or is to be treated under subsection   (5) or (6) as relating, to future costs of providing residential care.

  (3)   The compensation payment reduction for a particular day is an amount equal to the amount of * residential care subsidy that would be payable for the care recipient in respect of the * payment period if:

  (a)   the care recipient was provided with residential care on that day only; and

  (b)   this section and Subdivision   44 - F did not apply.

  (4)   However, if:

  (a)   the compensation payment reduction arises from a judgment or settlement that fixes the amount of compensation on the basis that liability should be apportioned between the care recipient and the compensation payer; and

  (b)   as a result, the amount of compensation is less than it would have been if liability had not been so apportioned; and

  (c)   the compensation is not paid in a lump sum;

the amount of the compensation payment reduction under subsection   (3) is reduced by the proportion corresponding to the proportion of liability that is apportioned to the care recipient by the judgment or settlement.

  (5)   If a care recipient is entitled to compensation under a judgment or settlement that does not take into account the future costs of providing residential care to the care recipient, the Secretary may, in accordance with the Subsidy Principles, determine:

  (a)   that, for the purposes of this section, the judgment or settlement is to be treated as having taken into account the cost of providing that residential care; and

  (b)   the part of the compensation that, for the purposes of this section, is to be treated as relating to the future costs of providing residential care.

Note:   Determinations are reviewable under Part   6.1.

  (6)   If:

  (a)   a care recipient is entitled to compensation under a settlement; and

  (b)   the settlement takes into account the future costs of providing residential care to the recipient; and

  (c)   the Secretary is satisfied that the settlement does not adequately take into account the future costs of providing residential care to the care recipient;

the Secretary may, in accordance with the Subsidy Principles, determine the part of the compensation that, for the purposes of this section, is to be treated as relating to the future costs of providing residential care.

Note:   Determinations are reviewable under Part   6.1.

  (7)   A determination under subsection   (5) or (6) must be in writing and notice of it must be given to the care recipient.

  (7A)   A determination under subsection   (5) or (6) is not a legislative instrument.

  (8)   A reference in this section to the costs of providing residential care does not include a reference to an amount that is or may be payable as a * refundable deposit, except to the extent provided in the Subsidy Principles.

  (9)   In this section, the following terms have the same meanings as in the Health and Other Services (Compensation) Act 1995 :