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AGED CARE ACT 1997 - SECT 57.2

Basic rules about accommodation bonds

             (1)  The rules relating to charging an * accommodation bond for the * entry of a person to a residential care service, or flexible care service, as a care recipient are as follows:

                    (aa)  at the time of entry, at least one of the following must be true:

                              (i)  if the accommodation bond is charged for the entry of the care recipient to a residential care service--the care recipient is not eligible to pay an * accommodation charge under subsection 57A-2(1);

                             (ii)  the service, or the * distinct part of the service through which the care recipient is to receive care, has * extra service status;

                            (iii)  section 57-23 allows the approved provider to charge an accommodation bond for the entry;

                            (iv)  if the accommodation bond is charged for the entry of the care recipient to a flexible care service--the care recipient requires a level of care that corresponds to a * low level of residential care provided through a residential care service;

Note:          If a care recipient's assets at the time of the care recipient's * entry to the residential care service or * flexible care service are less than the care recipient's minimum permissible asset value (as defined in subsection 57- 12(3)), the care recipient cannot be required to pay an * accommodation bond--see section 57- 12.

                   (ab)  the person is not a * charge exempt resident;

                     (a)  if the accommodation bond is charged for the entry of the care recipient to a residential care service--the residential care service must be * certified for the accommodation bond to become payable;

                     (b)  the entry must not be for the purpose of the provision of * respite care;

                     (c)  the approved provider conducting the residential care service or flexible care service must comply with the prudential requirements (see section 57-3);

                     (d)  the approved provider must, before the recipient enters the service, provide the care recipient with such information about the accommodation bond as is specified in the User Rights Principles;

                     (e)  the approved provider must have entered into an * accommodation bond agreement (see section 57-9) with the care recipient before, or within 21 days after, the care recipient entered the service;

Note:       This time limit is extended in some cases if certain legal processes relating to the care recipient's mental impairment are in progress--see subsection (2) of this section.

                      (f)  another person must not be required to pay the accommodation bond as a condition of the care recipient entering the residential care service or flexible care service;

                     (g)  the accommodation bond must not exceed the maximum amount under section 57- 12 or 57- 13, paragraph 57-14(1)(b) or section 57-23, as the case requires, and the care recipient must not be charged more than one accommodation bond in respect of entering the service;

                     (h)  the accommodation bond must not be charged if a determination is in force under paragraph 57-14(1)(a) that paying an accommodation bond would cause the care recipient financial hardship;

                      (i)  payment of the accommodation bond can only be required during a period specified in section 57-16;

                      (j)  payment of the accommodation bond by periodic payments must meet the requirements set out in section 57-17;

                     (k)  the approved provider must not use the accommodation bond unless the use of the bond is * permitted (see section 57-17A);

Note:       For the use of bonds charged before 1 October 2011, see Part 2 of Schedule 1 to the Aged Care Amendment Act 2011.

                   (ka)  the approved provider must comply with the prudential requirements (see section 57-3);

                      (l)  the approved provider is entitled to income derived from investing the * accommodation bond balance (see section 57-18);

                    (m)  amounts must not be deducted from the accommodation bond balance, except for amounts deducted under section 57-19;

                     (o)  the approved provider must not charge an accommodation bond if prohibited under Part 4.4 from doing so (see paragraph 66-1(j));

                     (p)  any other rules specified in the User Rights Principles.

             (2)  If, at the end of the 21 days mentioned in paragraph (1)(e):

                     (a)  the approved provider and the care recipient have not entered into an * accommodation bond agreement; and

                     (b)  a process under a law of the Commonwealth, a State or a Territory has begun for a person (other than an approved provider) to be appointed, by reason that the care recipient has a mental impairment, as the care recipient's legal representative;

the time limit in that paragraph is extended until the end of 7 days after:

                     (c)  the appointment is made; or

                     (d)  a decision is made not to make the appointment; or

                     (e)  the process ends for some other reason;

or for such further period as the Secretary allows, having regard to any matters specified in the User Rights Principles.



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