{"id":"C2006A00026","name":"Aged Care (Accommodation Payment Security) Act 2006","slug":"aged-care-accommodation-payment-security-act-2006","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"26 of 2006","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":27238,"registerId":"commonwealth-C2006A00026-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Aged Care (Accommodation Payment Security) Act 2006.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

6 April 2006

2. Sections 3 to 22

At the same time as Schedule 5 to the Aged Care Amendment (2005 Measures No. 1) Act 2006 commences.

31 May 2006

\n```\n\n> Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.\n\n (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Simplified outline","content":"#### 3 Simplified outline\n\n The following is a simplified outline of this Act and some related material:\n\nIn certain circumstances, the Commonwealth will pay to a person an amount that the Secretary considers is equal to an accommodation payment balance, and interest, owed to the person by a registered provider or former registered provider (see sections 10, 12, 13 and 16).\n\nAny rights that a person who is paid such an amount had to recover the amount from a registered provider or former registered provider are transferred to the Commonwealth (see section 15).\n\nThe Commonwealth may recoup certain costs it incurs from other registered providers (see sections 18 and 19 and the Aged Care (Accommodation Payment Security) Levy Act 2006).","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Application of this Act","content":"#### 4 Application of this Act\n\n (1) This Act applies in all the States and Territories.\n (2) However, this Act does not apply in any external Territory, except Norfolk Island, the Territory of Christmas Island and the Territory of Cocos (Keeling) Islands.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Binding the Crown","content":"#### 5 Binding the Crown\n\n (1) This Act binds the Crown in each of its capacities.\n (2) This Act does not make the Crown liable to be prosecuted for an offence.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Definitions","content":"#### 6 Definitions\n\n (1) In this Act:\n\n> accommodation bond has the same meaning as in the Aged Care Act 2024.\n\n> accommodation bond balance has the same meaning as in the Aged Care Act 2024.\n\n> accommodation payment balance means:\n\n (a) a refundable deposit balance; or\n (b) an accommodation bond balance; or\n (c) an entry contribution balance; or\n (d) an unregulated lump sum balance.\n\n> administrative costs, in relation to a default event declaration, means costs incurred by the Commonwealth in relation to, and as the result of, the making of the default event declaration and includes, but is not limited to, costs incurred by the Commonwealth as a result of:\n\n (a) making any insolvency event declaration under section 7 that enabled the making of the default event declaration; and\n (b) giving notice of such an insolvency event declaration under section 8; and\n (c) giving notice of the default event declaration under section 11; and\n (d) determining matters under section 12 that were required to be determined as a result of the making of the default event declaration; and\n (e) making any refund declarations under section 13 that were required to be made as a result of the making of the default event declaration; and\n (ea) making any refund declarations under section 13A that were permitted to be made as a result of the making of the default event declaration; and\n (f) giving notice of those refund declarations under section 14; and\n (g) attempting to recover amounts that the Commonwealth gained the right to recover under section 15 as a result of the making of those refund declarations; and\n (h) making refund costs recoupment determinations under section 18 relating to those refund declarations; and\n (i) recovering levy that the Commonwealth was enabled, as a result of the making of those refund costs recoupment determinations, to impose by regulations made under section 6 of the Aged Care (Accommodation Payment Security) Levy Act 2006.\n\n> administrative costs recoupment determination means a determination made under section 19.\n\n> aged care service has the meaning given by the Dictionary in Schedule 1 to the Aged Care Act 1997.\n\n> approved provider has the same meaning as in the Aged Care Quality and Safety Commission Act 2018.\n\n> approved residential care home has the same meaning as in the Aged Care Act 2024.\n\n> Australia, when used in a geographical sense, includes Norfolk Island, the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island.\n\n> corporation means a trading or financial corporation within the meaning of paragraph 51(xx) of the Constitution.\n\n> default event declaration means a declaration made under section 10.\n\n> entry, in relation to a person and an aged care service, has the meaning given by the Dictionary in Schedule 1 to the Aged Care Act 1997.\n\n> entry contribution has the same meaning as in the Aged Care Act 2024.\n\n> entry contribution balance has the same meaning as in the Aged Care Act 2024.\n\n> Finance Minister means the Minister who administers the Public Governance, Performance and Accountability Act 2013.\n\n> flexible care has the meaning given by the Dictionary in Schedule 1 to the Aged Care Act 1997.\n\n> flexible care service has the meaning given by the Dictionary in Schedule 1 to the Aged Care Act 1997.\n\n> formal agreement has the same meaning as in the rules made under the Aged Care (Consequential and Transitional Provisions) Act 2024.\n\n> funded aged care service has the same meaning as in the Aged Care Act 2024.\n\n> insolvency event: each of the following events is an insolvency event that may occur in relation to a person who is or has been a registered provider (the registered provider or former registered provider):\n\n (a) a CGT event G3 (within the meaning of the Income Tax Assessment Act 1997) in respect of shares or financial instruments of the registered provider or former registered provider;\n (b) the making of an order:\n (i) under section 459A or 459B of the Corporations Act 2001; or\n (ii) under a provision of the law of a State, or Territory, which deals with the incorporation of associations;\n that the registered provider or former registered provider be wound up in insolvency;\n (c) the passing of a special resolution:\n (i) under section 491 of the Corporations Act 2001; or\n (ii) under a provision of the law of a State, or Territory, which deals with the incorporation of associations;\n that the registered provider or former registered provider be wound up voluntarily;\n (d) the passing of a resolution under paragraph 439C(c) of the Corporations Act 2001 by the creditors of the registered provider or former registered provider that the registered provider or former registered provider be wound up;\n (e) the making of a sequestration order against the estate of the registered provider or former registered provider;\n (f) the acceptance of a debtor’s petition (within the meaning of the Bankruptcy Act 1966) against the registered provider or former registered provider by an Official Receiver (within the meaning of that Act);\n (g) the making of an insolvency event declaration in relation to the registered provider or former registered provider (see section 7);\n (h) the making of a debt agreement (within the meaning of the Bankruptcy Act 1966) to which the registered provider or former registered provider is a party in the capacity of a debtor;\n (i) the execution of a personal insolvency agreement (within the meaning of the Bankruptcy Act 1966) by the registered provider or former registered provider in the capacity of a debtor.\n\n> insolvency event declaration means a declaration made under section 7.\n\n> national newspaper means a newspaper circulating generally throughout Australia.\n\n> outstanding accommodation payment balance has the meaning given by subsection (2).\n\n> refundable deposit balance has the same meaning as in the Aged Care Act 2024.\n\n> refund amount, in relation to a refund declaration, means the amount that the refund declaration declares is to be paid by the Commonwealth.\n\n> refund costs recoupment determination means a determination made under section 18.\n\n> refund declaration means a declaration made under section 13 or 13A.\n\n> refund recipient, in relation to a refund declaration, means the person that the refund declaration declares is to be paid an amount by the Commonwealth.\n\n> registered provider has the same meaning as in the Aged Care Act 2024.\n\n> residential care has the meaning given by the Dictionary in Schedule 1 to the Aged Care Act 1997.\n\n> residential care service has the meaning given by the Dictionary in Schedule 1 to the Aged Care Act 1997.\n\n> respite care has the meaning given by the Dictionary in Schedule 1 to the Aged Care Act 1997.\n\n> Secretary means the Secretary of the Department.\n\n> unregulated lump sum has the meaning given by subsection (3).\n\n> unregulated lump sum balance, in relation to an unregulated lump sum is, at a particular time, an amount equal to the difference between:\n\n (a) the amount of the unregulated lump sum; and\n (b) any amounts that have been, or are permitted to be, deducted at that time under the agreement under which the unregulated lump sum was paid.\n Outstanding accommodation payment balance\n (2) For the purposes of this Act, an accommodation payment balance is an outstanding accommodation payment balance at a particular time of a person who is or has been a registered provider if:\n (a) at that time all, or part, of the accommodation payment balance has not been refunded; and\n (aa) in relation to a refundable deposit balance—that time is later than the time required for payment of the balance to be refunded by the person under section 311 of the Aged Care Act 2024; and\n (b) in relation to an accommodation bond balance or entry contribution balance—that time is later than the time required for the balance to be refunded by the person under:\n (i) for accommodation bond balances—the rules made under the Aged Care Act 2024; or\n (ii) for entry contribution balances—a formal agreement applying in respect of the balance; and\n (c) in relation to an unregulated lump sum—that time is later than the earlier of the following:\n (i) the start of the first day on which the person (the unregulated lump sum holder) to whom the amount was paid is obliged, under the agreement under which it was paid, to refund the amount or part of the amount;\n (ii) the end of a period of 14 days beginning immediately after the day on which the individual in relation to whose entry to a residential care service or flexible care service the amount of the unregulated lump sum was paid ceased accessing relevant funded aged care services for the unregulated lump sum (see subsection 2A).\n (2A) For the purposes of subparagraph 6(2)(c)(ii), relevant funded aged care services for an unregulated lump sum means funded aged care services:\n (a) delivered by the registered provider that holds the unregulated lump sum; and\n (b) delivered in an approved residential care home, being the approved residential care home that was, immediately before the commencement of the Aged Care Act 2024, the place of the residential care service or flexible care service in relation to which the unregulated lump sum was paid.\n What is an unregulated lump sum?\n (3) An unregulated lump sum is an amount of money paid to a person (the unregulated lump sum holder) in the following circumstances:\n (a) the amount is paid to the unregulated lump sum holder by a care recipient under a written agreement for the care recipient’s entry to:\n (i) a residential care service through which residential care other than respite care is, or is to be, provided by the unregulated lump sum holder; or\n (ii) a flexible care service through which flexible care is, or is to be, provided by the unregulated lump sum holder;\n (b) the amount does not accrue daily;\n (c) under the agreement, the amount, or part of the amount, must be refunded to the care recipient if the unregulated lump sum holder ceases to provide residential care or flexible care (as the case requires) to the care recipient;\n (d) the unregulated lump sum holder was an approved provider immediately before 1 January 2009;\n (e) the amount was paid to the unregulated lump sum holder before 1 January 2009 and before the unregulated lump sum holder began to be an approved provider;\n (f) the amount is not an entry contribution;\n (g) the care recipient did not cease to be provided with residential care through the residential care service, or flexible care through the flexible care service (as the case requires), after the amount was paid but before the unregulated lump sum holder began to be an approved provider.\n\n> Note: The expressions used in this section have the same meanings as in the Aged Care Act 1997: see section 6A of this Act. Unregulated lump sums cannot be paid under the Aged Care Act 2024, but agreements may still be in force after that Act commences. Unregulated lump sums paid under these agreements may relate to approved providers that are deemed to be registered providers because of the operation of the Aged Care (Consequential and Transitional Provisions) Act 2024 and may therefore form part of an outstanding accommodation payment balance.","sortOrder":6},{"sectionNumber":"6A","sectionType":"section","heading":"References to the Aged Care Act 1997","content":"#### 6A References to the Aged Care Act 1997\n\n (1) An expression used in a provision of this Act and in the Aged Care Act 1997 has the same meaning in that provision as it had in that Act immediately before the commencement of the Aged Care Act 2024.\n (2) A reference in this Act to a former registered provider, or to a person who has been a registered provider, is taken to include a reference to a former approved provider.\n (3) Subsections (1) and (2) are subject to a contrary intention.","sortOrder":7},{"sectionNumber":"Part 2","sectionType":"part","heading":"Insolvency event declaration","content":"## Part 2—Insolvency event declaration","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Making of insolvency event declaration","content":"#### 7 Making of insolvency event declaration\n\n (1) The Minister may make an insolvency event declaration in relation to a person who is or has been a registered provider if:\n (a) the person is a Chapter 5 body corporate (within the meaning of the Corporations Act 2001); and\n (b) there is at least one outstanding accommodation payment balance of the person.\n\n> Note: A person that is a body that is incorporated under a law of a State or Territory may be a Chapter 5 body corporate within the meaning of the Corporations Act 2001.\n\n (2) The insolvency event declaration must be in writing.\n (3) An insolvency event declaration is not a legislative instrument.","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Notice of insolvency event declaration","content":"#### 8 Notice of insolvency event declaration\n\n (1) The Secretary must give a copy of an insolvency event declaration to the person to whom the insolvency event declaration relates.\n (2) A failure to comply with subsection (1) does not affect the validity of any insolvency event declaration.","sortOrder":10},{"sectionNumber":"Part 3","sectionType":"part","heading":"Requirement to notify Secretary of certain insolvency events","content":"## Part 3—Requirement to notify Secretary of certain insolvency events","sortOrder":11},{"sectionNumber":"9","sectionType":"section","heading":"Notice of certain insolvency events","content":"#### 9 Notice of certain insolvency events\n\n (1) If:\n (a) a person is a registered provider; and\n (b) any of the events mentioned in paragraph (a), (b), (c), (d), (e), (f), (h) or (i) of the definition of insolvency event occur in relation to the person;\n the person must notify the Secretary the first time that the event occurs.\n (2) If:\n (a) a person has been, but is no longer, a registered provider; and\n (b) any of the events mentioned in paragraph (a), (b), (c), (d), (e), (f), (h) or (i) of the definition of insolvency event occur in relation to the person; and\n (c) there was at least one outstanding accommodation payment balance of the person at the time the event occurs;\n the person must notify the Secretary the first time that the event occurs.\n (3) The notification under subsection (1) or (2) must be given in writing by the end of the first business day after the day on which the event occurs.\n (4) A person commits an offence if the person refuses or fails to comply with a requirement under this section.\n\nPenalty: 30 penalty units.","sortOrder":12},{"sectionNumber":"Part 4","sectionType":"part","heading":"Default event declaration","content":"## Part 4—Default event declaration","sortOrder":13},{"sectionNumber":"10","sectionType":"section","heading":"Making of default event declaration","content":"#### 10 Making of default event declaration\n\n (1) As soon as practicable after the Secretary first becomes aware that:\n (a) an insolvency event has occurred in relation to a person who is or has been a registered provider (the registered provider or former registered provider); and\n (b) there is at least one outstanding accommodation payment balance of the registered provider or former registered provider;\n the Secretary must make a default event declaration.\n (2) The default event declaration must:\n (a) be in writing; and\n (b) state that an insolvency event has occurred in relation to the registered provider or former registered provider; and\n (c) state that the Secretary considers that there is at least one outstanding accommodation payment balance of the registered provider or former registered provider.\n (3) A default event declaration is not a legislative instrument.","sortOrder":14},{"sectionNumber":"11","sectionType":"section","heading":"Notice of default event declaration","content":"#### 11 Notice of default event declaration\n\n (1) The Secretary must give a copy of a default event declaration to:\n (a) the registered provider or former registered provider in relation to which the declaration states an insolvency event has occurred; and\n (b) each person whom the Secretary considers may be entitled to receive a refund of an outstanding accommodation payment balance of the registered provider or former registered provider.\n (2) The Secretary must publish a copy of a default event declaration in a national newspaper.\n (3) A failure to comply with subsection (1) or (2) does not affect the validity of any default event declaration.","sortOrder":15},{"sectionNumber":"Part 5","sectionType":"part","heading":"Refund declaration","content":"## Part 5—Refund declaration","sortOrder":16},{"sectionNumber":"12","sectionType":"section","heading":"Secretary to determine certain matters","content":"#### 12 Secretary to determine certain matters\n\n (1) If the Secretary has made a default event declaration stating that an insolvency event has occurred in relation to a person who is or has been a registered provider (the registered provider or former registered provider), the Secretary must identify each accommodation payment balance that:\n (a) was an outstanding accommodation payment balance of the registered provider or former registered provider at the time that the default event declaration was made; or\n (b) later becomes an outstanding accommodation payment balance of the registered provider or former registered provider.\n (2) In respect of each accommodation payment balance identified by the Secretary under subsection (1), the Secretary must determine:\n (a) the date on which the accommodation payment balance became an outstanding accommodation payment balance; and\n (b) the amount that the Secretary considers is equal to the amount of the accommodation payment balance that had not been refunded at the time the Secretary makes the determination; and\n (c) the amount that the Secretary considers is equal to the amount representing interest on the amount determined under paragraph (b), worked out in accordance with the rules made for the purposes of section 313 of the Aged Care Act 2024 under section 602 of that Act, that has accrued at the time that the Secretary determines the amount under paragraph (b); and\n (d) the person to whom the Secretary considers the registered provider or former registered provider was required to refund the accommodation payment balance at the time that it became an outstanding accommodation payment balance; and\n (e) the method that the Secretary considers would be most appropriate for the Commonwealth to use to pay a refund amount to the person mentioned in paragraph (d).\n Where all or part of a refund is clawed back as a result of insolvency or bankruptcy\n (3) If:\n (a) before the determination is made, part of an accommodation payment balance is refunded; and\n (b) in a case where the registered provider or former registered provider is a corporation:\n (i) a transaction under which the refund took place is a voidable transaction under subsection 588FE(2), (2A), (2B) or (6B) of the Corporations Act 2001; and\n (ii) the liquidator takes action, including but not limited to the making of an application under section 588FF of that Act or a request under subsection 588FGAA(2) of that Act, as a result of which the person to whom the refund was made does not retain the value of the refund, or part of the value of the refund; and\n (c) in a case where the registered provider or former registered provider is not a corporation:\n (i) a transfer of any property for the purposes of giving the refund is void under section 122 of the Bankruptcy Act 1966; and\n (ii) the trustee in bankruptcy takes action as a result of which the person to whom the refund was made does not retain the value of the refund, or part of the value of the refund;\n then, for the purposes of paragraph (2)(b), to the extent that the person to whom the refund was made does not retain the value of the refund, the refund is taken not to have been made.","sortOrder":17},{"sectionNumber":"13","sectionType":"section","heading":"Making of refund declaration","content":"#### 13 Making of refund declaration\n\n (1) As soon as practicable after the Secretary has determined the matters mentioned in subsection 12(2) in respect of an outstanding accommodation payment balance of a person who is or has been a registered provider (the registered provider or former registered provider), the Secretary must make a refund declaration relating to the outstanding accommodation payment balance.\n (2) The refund declaration must:\n (a) be in writing; and\n (b) specify the registered provider or former registered provider that has not refunded all, or part, of the relevant outstanding accommodation payment balance; and\n (c) declare that the Commonwealth is to pay an amount equal to the sum of:\n (i) the amount determined under paragraph 12(2)(b); and\n (ii) the amount determined under paragraph 12(2)(c);\n to the person determined under paragraph 12(2)(d).\n (3) A refund declaration is not a legislative instrument.","sortOrder":18},{"sectionNumber":"13A","sectionType":"section","heading":"Additional refund declaration where refund by registered provider or former registered provider void or voidable","content":"#### 13A Additional refund declaration where refund by registered provider or former registered provider void or voidable\n\n (1) This section applies if:\n (a) a person who is or has been a registered provider (the registered provider or former registered provider) refunds part of an accommodation payment balance (the initial refund); and\n (b) after the initial refund, the Secretary, under paragraph 12(2)(b), determines the amount that the Secretary considers is equal to the amount of the accommodation payment balance that has not been refunded at the time the Secretary makes the determination; and\n (c) a refund declaration is made under section 13 in reliance on that determination; and\n (d) in a case where the registered provider or former registered provider is a corporation:\n (i) a transaction under which the initial refund took place is a voidable transaction under subsection 588FE(2), (2A), (2B) or (6B) of the Corporations Act 2001; and\n (ii) the liquidator takes action, including but not limited to the making of an application under section 588FF of that Act or a request under subsection 588FGAA(2) of that Act, as a result of which the person to whom the initial refund was made does not retain the value of the initial refund, or part of the value of the initial refund; and\n (e) in a case where the registered provider or former registered provider is not a corporation:\n (i) a transfer of any property for the purposes of giving the initial refund is void under section 122 of the Bankruptcy Act 1966; and\n (ii) the trustee in bankruptcy takes action as a result of which the person to whom the initial refund was made does not retain the value of the initial refund, or part of the value of the initial refund.\n (2) The Secretary may:\n (a) determine the amount that the Secretary considers is equal to the amount of the value of the initial refund that has not been retained by the person to whom it was made; and\n (b) as soon as practicable after the Secretary has determined that matter, make another refund declaration relating to the outstanding accommodation payment balance.\n (3) The refund declaration must:\n (a) be in writing; and\n (b) specify the registered provider or former registered provider who has not refunded all, or part, of the relevant outstanding accommodation payment balance; and\n (c) declare that the Commonwealth is to pay an amount equal to the amount determined under paragraph (2)(a).\n (4) The refund declaration is not a legislative instrument.","sortOrder":19},{"sectionNumber":"14","sectionType":"section","heading":"Notice of refund declaration","content":"#### 14 Notice of refund declaration\n\n (1) The Secretary must give a copy of a refund declaration to:\n (a) the refund recipient; and\n (b) the registered provider or former registered provider specified in the refund declaration.\n (2) A failure to comply with subsection (1) does not affect the validity of any refund declaration.","sortOrder":20},{"sectionNumber":"Part 6","sectionType":"part","heading":"Transfer of rights and payments of refund amounts","content":"## Part 6—Transfer of rights and payments of refund amounts","sortOrder":21},{"sectionNumber":"15","sectionType":"section","heading":"Transfer of recovery rights to Commonwealth","content":"#### 15 Transfer of recovery rights to Commonwealth\n\n Immediately after the Secretary makes a refund declaration, any rights that the refund recipient had when the refund declaration was made to recover an amount equal to the refund amount from the registered provider or former registered provider specified in the refund declaration are, by force of this section, transferred to the Commonwealth.\n\n> Note: Any rights that the refund recipient has to receive from the registered provider or former registered provider any additional amounts are not transferred to the Commonwealth by force of this section.","sortOrder":22},{"sectionNumber":"16","sectionType":"section","heading":"Payments by Commonwealth","content":"#### 16 Payments by Commonwealth\n\n Within 14 days after the Secretary makes a refund declaration, the Commonwealth must pay the refund amount to the refund recipient.","sortOrder":23},{"sectionNumber":"17","sectionType":"section","heading":"Appropriation","content":"#### 17 Appropriation\n\n The amounts payable under section 16 are to be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.","sortOrder":24},{"sectionNumber":"Part 7","sectionType":"part","heading":"Costs recoupment determinations","content":"## Part 7—Costs recoupment determinations","sortOrder":25},{"sectionNumber":"18","sectionType":"section","heading":"Making of refund costs recoupment determination","content":"#### 18 Making of refund costs recoupment determination\n\n (1) The Minister may, at a particular time, make a refund costs recoupment determination relating to one or more refund declarations if:\n (a) before that time, the Minister has informed the Treasurer and the Finance Minister that the Minister intends to make a refund costs recoupment determination relating to those refund declarations; and\n (b) at that time, the Commonwealth has not recovered all of each refund amount in relation to those refund declarations; and\n (c) at that time, the Commonwealth has not previously made a refund costs recoupment determination relating to each of those refund declarations.\n (2) A refund costs recoupment determination must:\n (a) be in writing; and\n (b) specify the refund declarations to which the determination relates; and\n (c) specify the costs recoupment amount (see subsection (3)); and\n (d) specify the default event declaration to which the determination relates (see subsection (4)).\n (3) The costs recoupment amount specified in a refund costs recoupment determination is the amount equal to the sum of each refund amount that:\n (a) is specified in a refund declaration specified in the determination; and\n (b) has not been recovered by the Commonwealth at the time the determination is made.\n (4) A default event declaration is a default event declaration to which a refund costs recoupment determination relates if the making of the default event declaration was a precondition of the making of the refund declarations specified in the refund costs recoupment determination.\n (5) A refund costs recoupment determination is not a legislative instrument.","sortOrder":26},{"sectionNumber":"19","sectionType":"section","heading":"Making of administrative costs recoupment determination","content":"#### 19 Making of administrative costs recoupment determination\n\n (1) The Minister may, at a particular time, make an administrative costs recoupment determination relating to a default event declaration if:\n (a) before that time, the Minister has informed the Treasurer and the Finance Minister that the Minister intends to make an administrative costs recoupment determination relating to that default event declaration; and\n (b) at that time, the Minister considers, on reasonable grounds, that the Commonwealth has not recouped all of the administrative costs relating to the default event determination.\n (2) An administrative costs recoupment determination must:\n (a) be in writing; and\n (b) specify the default event declaration to which it relates; and\n (c) specify the costs recoupment amount (see subsection (3)).\n (3) The costs recoupment amount specified in an administrative costs recoupment determination must not exceed the sum of:\n (a) the amount that the Minister considers, on reasonable grounds, is equal to the amount of the administrative costs relating to the default event declaration specified in the determination that the Commonwealth has not recouped at the time that the determination is made; and\n (b) the amount that the Minister considers, on reasonable grounds, is likely to cover the costs of recovering levy that the Commonwealth will be enabled to impose by regulations made under section 6 of the Aged Care (Accommodation Payment Security) Levy Act 2006 as a result of the making of the determination.\n (4) An administrative costs recoupment determination is not a legislative instrument.","sortOrder":27},{"sectionNumber":"Part 8","sectionType":"part","heading":"Miscellaneous","content":"## Part 8—Miscellaneous","sortOrder":28},{"sectionNumber":"20","sectionType":"section","heading":"Delegations by Minister","content":"#### 20 Delegations by Minister\n\n (1) The Minister may, in writing, delegate to the Secretary all or any of the Minister’s powers or functions under this Act.\n (2) In exercising powers or functions delegated under subsection (1), the Secretary must comply with any directions of the Minister.","sortOrder":29},{"sectionNumber":"21","sectionType":"section","heading":"Delegations by Secretary","content":"#### 21 Delegations by Secretary\n\n (1) The Secretary may, in writing, delegate to an SES employee, or acting SES employee, in the Department all or any of the Secretary’s powers or functions under this Act.\n (2) In exercising powers or functions delegated under subsection (1), the delegate must comply with any directions of the Secretary.","sortOrder":30},{"sectionNumber":"22","sectionType":"section","heading":"Regulations","content":"#### 22 Regulations\n\n (1) The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act; or\n (c) necessary or convenient to be prescribed for enabling or facilitating the collection of levy imposed by regulations under section 6 of the Aged Care (Accommodation Payment Security) Levy Act 2006.\n (2) Without limiting paragraph (1)(c), regulations prescribing matters necessary or convenient to be prescribed for enabling or facilitating the collection of levy may provide for the following:\n (a) the person who is liable to pay levy;\n (b) the time levy is due and payable;\n (c) liability for levy being a debt due to the Commonwealth;\n (d) the methods by which levy may be paid (including by instalments);\n (e) the payment of penalties in respect of late payment of levy;\n (f) repayments of levy;\n (g) repayments of overpayments of levy;\n (h) penalties for offences against the regulations, not exceeding a fine of 50 penalty units.","sortOrder":31}],"analysis":{"issue_detection":{"absurdities":[{"type":"circular_definition","section":"6(1) - definition of 'insolvency event', paragraph (g)","severity":"high","reasoning":"Section 7(1) permits the Minister to make an insolvency event declaration only if an insolvency event has occurred. Paragraph (g) of the definition of 'insolvency event' in section 6(1) includes 'the making of an insolvency event declaration in relation to the registered provider or former registered provider (see section 7)'. This means the act of making an insolvency event declaration is itself an insolvency event, which could theoretically justify the making of a further insolvency event declaration, which is itself an insolvency event, and so on ad infinitum. The declaration bootstraps itself into existence as its own trigger.","confidence":0.92,"description":"Circular definition: an 'insolvency event declaration' (made under section 7) is itself listed as one of the 'insolvency events' that can trigger the making of an insolvency event declaration under section 7."},{"type":"impossible_compliance","section":"9(1) and 9(4) - Notice of certain insolvency events","severity":"medium","reasoning":"Section 9(1) imposes on the registered provider itself the obligation to notify the Secretary within one business day of the insolvency event. Events such as the making of a winding-up order (paragraph (b)) or a sequestration order (paragraph (e)) immediately vest control of the entity in a liquidator or trustee in bankruptcy, not the registered provider. The registered provider as a legal person cannot comply; yet section 9(4) attaches a criminal penalty of 30 penalty units to non-compliance. The Act does not extend the obligation to the liquidator, trustee, or administrator, and does not excuse the registered provider from the offence provision in these circumstances.","confidence":0.82,"description":"Impossible compliance: a registered provider subject to a winding-up order or sequestration order (events (b) and (e) of the insolvency event definition) may be legally incapacitated or have their affairs under external control at the moment the obligation to notify the Secretary arises, making personal compliance practically and legally impossible."},{"type":"self_contradicting","section":"6(3) - definition of 'unregulated lump sum', paragraph (d) and (e)","severity":"high","reasoning":"Paragraph (d) requires the unregulated lump sum holder to have been an approved provider 'immediately before 1 January 2009', meaning they were already an approved provider by that date. Paragraph (e) requires the amount to have been paid 'before 1 January 2009 and before the unregulated lump sum holder began to be an approved provider'. For both conditions to be simultaneously satisfied, the payment must have been made before the holder became an approved provider, yet the holder must have been an approved provider immediately before 1 January 2009. This only makes logical sense if the person became an approved provider at some point prior to 1 January 2009 and the payment was made before that point — but that interpretation strains the natural reading of paragraph (d), which refers to status 'immediately before' the date rather than 'at some time before'. The combined effect is a very narrow temporal window that may be internally inconsistent for any entity that became an approved provider precisely on or after 1 January 2009.","confidence":0.75,"description":"The definition of 'unregulated lump sum' requires the unregulated lump sum holder to have been an approved provider immediately before 1 January 2009 AND requires that the amount was paid before 1 January 2009 and before the holder began to be an approved provider. These two conditions are logically irreconcilable."},{"type":"other","section":"19(1)(b) - administrative costs recoupment determination","severity":"medium","reasoning":"Section 19(1)(b) uses the phrase 'default event determination' while the defined term throughout the Act (including in section 19(2)(b)) is 'default event declaration'. This creates an internal ambiguity: section 19(1)(b) refers to a term that is not defined and does not appear elsewhere in the Act. A court or administrator would need to read in the correct term, but the drafting error could cause genuine interpretive difficulty as to whether a 'determination' and a 'declaration' are the same thing in this context, particularly given that the Act separately defines 'refund costs recoupment determination' and 'administrative costs recoupment determination' as distinct instruments.","confidence":0.88,"description":"Section 19(1)(b) refers to the Commonwealth not having recouped all of the administrative costs relating to 'the default event determination' — but no such term exists in the Act. The defined term is 'default event declaration'."},{"type":"other","section":"16 - Payments by Commonwealth","severity":"low","reasoning":"Section 16 uses mandatory language ('must pay') with a 14-day deadline, but provides no enforcement mechanism, no penalty for late payment, and no remedy for a refund recipient who does not receive payment. While section 17 provides the appropriation, there is no procedural pathway for a refund recipient to enforce the obligation against the Commonwealth. This is a practical legislative gap rather than a strict logical contradiction, but it renders the obligation hollow.","confidence":0.7,"description":"The Commonwealth is required to pay the refund amount to the refund recipient within 14 days of the refund declaration, but the Act contains no mechanism to compel or verify that the payment is actually made, nor any consequence or remedy if the 14-day deadline is missed."},{"type":"circular_definition","section":"6(1) - definition of 'accommodation payment balance' and 'outstanding accommodation payment balance' (subsection 6(2))","severity":"low","reasoning":"Subsection 6(2)(c)(ii) triggers the 14-day refund window when the individual 'ceased accessing relevant funded aged care services for the unregulated lump sum'. Subsection 6(2A) defines those services as funded aged care services delivered by the registered provider that holds the unregulated lump sum, in an approved residential care home that was the place of the original service. This is not strictly circular, but in the event the registered provider has ceased operating (the very scenario the Act is designed to address), determining when the individual 'ceased accessing' services from an insolvent or defunct provider becomes practically indeterminate.","confidence":0.6,"description":"The definition of 'outstanding accommodation payment balance' in subsection 6(2) for 'unregulated lump sums' (paragraph (c)) uses a trigger tied to the individual ceasing to access 'relevant funded aged care services', but the definition of 'relevant funded aged care services' in subsection 2A cross-refers back to the registered provider holding the unregulated lump sum — creating a definition loop for the timing trigger."}],"contradictions":[{"severity":"high","section_a":"6(1) - definition of 'insolvency event', paragraph (g)","section_b":"7(1) - Making of insolvency event declaration","confidence":0.92,"description":"The power in section 7(1) to make an insolvency event declaration is conditioned on an insolvency event having occurred, but paragraph (g) of the insolvency event definition makes the making of an insolvency event declaration itself an insolvency event. This means the declaration is simultaneously the precondition for and the consequence of its own making."},{"severity":"medium","section_a":"6(1) - definition of 'approved provider' (referencing Aged Care Quality and Safety Commission Act 2018)","section_b":"6(1) - definition of 'aged care service', 'entry', 'residential care', 'residential care service', 'flexible care', 'flexible care service', 'respite care' (referencing Aged Care Act 1997)","confidence":0.72,"description":"The Act defines 'approved provider' by reference to the Aged Care Quality and Safety Commission Act 2018 (a post-2018 instrument), while simultaneously defining operationally critical terms such as 'aged care service', 'entry', 'residential care' and 'flexible care' by reference to the Aged Care Act 1997. These two Acts operate in different regulatory eras and may use these terms inconsistently. Section 6A attempts to freeze the 1997 Act meanings at the point of commencement of the Aged Care Act 2024, but no equivalent freezing provision applies to the meaning of 'approved provider' under the 2018 Act, creating a potential temporal mismatch in the definitional framework."},{"severity":"low","section_a":"10(1) - Making of default event declaration (mandatory: 'must make')","section_b":"7(1) - Making of insolvency event declaration (discretionary: 'may make')","confidence":0.65,"description":"The Secretary is mandatorily required under section 10(1) to make a default event declaration as soon as practicable after becoming aware of an insolvency event and outstanding accommodation payment balance. However, section 7(1) only gives the Minister a discretionary power ('may make') to make an insolvency event declaration. Since the insolvency event definition at paragraph (g) includes the making of an insolvency event declaration as an insolvency event, the Minister's discretion not to make such a declaration could delay or prevent the Secretary's mandatory obligation under section 10 from being triggered via that pathway — yet the Secretary's obligation under section 10 is triggered by any insolvency event, including those under paragraphs (a)–(f), (h), (i), which do not depend on the Minister's discretion. The inconsistency in mandatory versus discretionary language between the two sections creates uncertainty about the overall scheme's operation."},{"severity":"medium","section_a":"12(3) - Clawback deemed not to be a refund (for purposes of s12(2)(b))","section_b":"13A - Additional refund declaration where refund void or voidable","confidence":0.78,"description":"Section 12(3) provides that where a refund is clawed back by a liquidator or trustee, that refund is 'taken not to have been made' for the purposes of determining the outstanding amount under s12(2)(b). This deeming would mean the original determination under s12(2)(b) should capture the full amount including the clawed-back portion. However, section 13A contemplates a scenario where a refund declaration has already been made under section 13 (in reliance on a s12(2)(b) determination that did not yet account for the clawback) and then a further clawback occurs. If s12(3) is applied prospectively to deem the refund never made, it is unclear whether the original s13 refund declaration amount was already correct (and s13A is redundant) or whether s12(3) only applies to determinations made after the clawback is known (making s13A necessary). The two provisions appear to address the same scenario via different mechanisms without clearly delineating which applies when."},{"severity":"medium","section_a":"18(1)(c) - Refund costs recoupment determination: no prior determination for each refund declaration","section_b":"18(1) generally - Refund costs recoupment determination may relate to 'one or more refund declarations'","confidence":0.74,"description":"Section 18(1)(c) conditions the making of a refund costs recoupment determination on the Commonwealth not having 'previously made a refund costs recoupment determination relating to each of those refund declarations'. This suggests that if even one of the refund declarations bundled into a proposed determination has already been the subject of a prior determination, the entire bundled determination is precluded. However, the Act provides no mechanism to make a determination relating only to the subset of refund declarations not previously covered. This creates a structural trap where a Minister who made an earlier determination covering one refund declaration cannot later make a further determination covering that same declaration together with new ones, and may be unable to recoup costs for the new declarations if they are administratively grouped with the old one."}]},"summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The original 2006 Act was designed around the Aged Care Act 1997 framework and covered accommodation bonds and entry contributions. Its scope has been incrementally expanded to accommodate the transition to the Aged Care Act 2024, adding coverage of 'refundable deposit balances' (the modern equivalent), creating a new section 13A for additional refund declarations in void/voidable refund scenarios, and introducing the 'unregulated lump sum' category to capture pre-2009 informal arrangements that fall outside the formal regulatory regime. The Act now explicitly bridges two distinct legislative frameworks (1997 and 2024 Acts), which was not part of the original design."},"complexity_factors":["Interaction with multiple pieces of legislation: Aged Care Act 2024, Aged Care Act 1997, Corporations Act 2001, Bankruptcy Act 1966, Income Tax Assessment Act 1997, and the companion Aged Care (Accommodation Payment Security) Levy Act 2006","Transitional complexity arising from the shift from the Aged Care Act 1997 to the Aged Care Act 2024, with parallel definitions and deemed references","Four distinct types of accommodation payment balances, each with different refund trigger conditions and governing instruments","Claw-back provisions dealing with voidable transactions under insolvency law (Corporations Act and Bankruptcy Act), requiring cross-referencing of separate legal regimes","Multi-step administrative process with sequential declarations (insolvency event → default event → refund declaration → costs recoupment determinations), each with distinct legal requirements","The 'unregulated lump sum' category has grandfathering conditions (pre-2009) that require careful factual analysis","Constitutional underpinning references (s51(xx) trading/financial corporations power) add a layer of federalism complexity","Costs recoupment mechanism involves a separate levy Act and requires Ministerial consultation with Treasurer and Finance Minister before activation"],"plain_english_summary":"This Act creates a financial safety net for aged‑care residents who paid large refundable lump‑sum accommodation payments and whose provider becomes insolvent. If a default is declared, the Commonwealth must refund residents within 14 days, then steps into their recovery rights.\n\nIf recovery from the failed provider fails, the Commonwealth can recoup costs from other aged‑care providers via an industry levy. It protects residents’ deposits and affects residents, providers, and the Commonwealth."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The Act's scope matches its simplified outline: it provides for Commonwealth payment of outstanding accommodation payment balances on provider insolvency/default, transfers recovery rights to the Commonwealth, and enables recoupment from other providers via determinations and a levy (see section 3). No text in the Act indicates a change from that original scope."},"complexity_factors":["Extensive defined-term cross‑referencing to the Aged Care Act 2024 and earlier Acts for key concepts (see section 6 and section 6A).","Multiple distinct written declarations with different legal effects (insolvency event declaration, default event declaration, refund declaration, additional refund declaration) (see sections 7, 10, 13, 13A).","Administrative and monetary determinations by officials requiring factual and legal assessments (identifying outstanding balances, interest calculation, refund recipients and payment methods) (see section 12(1)–(2)).","Interaction with corporate and bankruptcy law (voidable transactions, liquidator/trustee actions) that can change refund entitlements and trigger additional declarations (see section 12(3) and section 13A).","Transfer of private recovery rights to the Commonwealth on making a refund declaration, shifting who enforces claims (see section 15).","Fast statutory timing and payment obligations (14‑day Commonwealth payment, 1 business day provider notification), creating compliance pressure (see sections 9(3), 16).","Criminal penalty for failure to notify specified insolvency events (30 penalty units) adding enforcement risk (see section 9(4)).","Ministerial recoupment determinations and delegated powers to the Secretary, plus non‑legislative instruments, concentrate decision latitude in the executive (see sections 18–19, 20–21).","Mechanism to recoup costs from other registered providers via determinations and a levy requiring further regulations and administrative processes (see sections 18–19, 22).","Publication and notice requirements (national newspaper, notice to likely refund recipients) adding procedural steps and potential publicity effects (see section 11)."],"plain_english_summary":"This Act lets the Commonwealth pay unpaid aged‑care accommodation amounts (refundable deposits, bonds, entry contributions and some pre‑2009 lump sums) plus interest when a registered provider becomes insolvent or a default is declared. Rights to recover those amounts transfer to the Commonwealth; it must pay refunds within 14 days and may recoup unpaid refunds and administrative costs from other registered providers by ministerial determinations and a levy. Providers must notify certain insolvency events quickly or face a penalty."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":true,"description":"The legislation has expanded beyond its original 2006 scope through amendments that accommodate major aged care reforms. Originally focused on 'accommodation bonds' under the Aged Care Act 1997, it now covers: (1) 'refundable deposits' under the new Aged Care Act 2024, (2) 'entry contributions', and (3) legacy 'unregulated lump sums' from before 2009. The 2024 amendments added section 13A for additional refund declarations where initial refunds are clawed back in insolvency, and expanded the definition of 'administrative costs' to include new determination-making powers. The Act now serves as a bridge between three different aged care financing regimes spanning nearly two decades."},"complexity_factors":["Extensive cross-referencing to other legislation (Aged Care Act 1997, Aged Care Act 2024, Aged Care Quality and Safety Commission Act 2018, Corporations Act 2001, Bankruptcy Act 1966, Income Tax Assessment Act 1997)","Multiple nested definitions including 25+ defined terms in section 6 alone, with some definitions containing sub-definitions (e.g., 'insolvency event' has 9 separate triggering events)","Complex conditional logic for determining when an accommodation payment balance becomes 'outstanding' — different rules apply to refundable deposits, accommodation bonds, entry contributions, and unregulated lump sums","Transitional provisions dealing with legacy payments (pre-2009 'unregulated lump sums') and references to both the old Aged Care Act 1997 and new Aged Care Act 2024","Interaction with corporate insolvency law (voidable transactions under Corporations Act) and bankruptcy law (transfers void under Bankruptcy Act) in sections 12(3) and 13A","Dual recoupment mechanisms — separate processes for refund costs (section 18) and administrative costs (section 19), each with different preconditions and calculation methods","Delegated legislative power for levy collection with 8 specific regulatory matters listed in section 22(2)"],"plain_english_summary":"This law creates a **safety net for elderly Australians who have paid accommodation bonds or deposits to aged care providers that later go broke**.\n\n**What it does:**\n- If a registered aged care provider becomes insolvent (goes bankrupt or into liquidation) and cannot refund money owed to residents, the **Commonwealth Government steps in to pay the refund**.\n- The government pays the outstanding balance plus interest to the affected resident (or their estate).\n- In exchange, the **government takes over the resident's legal right to recover that money** from the failed provider.\n\n**Who it affects:**\n- **Elderly Australians and their families** who paid refundable accommodation deposits, bonds, or entry contributions to aged care homes.\n- **Aged care providers** — they must notify the government if they become insolvent, and they may later be charged a levy to help cover the costs of these bailouts.\n\n**How it works:**\n1. **Insolvency event declaration** — The Minister declares that a provider has become insolvent.\n2. **Default event declaration** — The Secretary identifies that there are unpaid refunds owed to residents.\n3. **Refund declaration** — The Secretary determines who is owed what (including interest) and declares the Commonwealth will pay.\n4. **Payment** — The government pays the resident within 14 days.\n5. **Recovery** — The government can try to recover the money from the failed provider, and can impose a levy on other aged care providers to cover costs.\n\n**Why it matters:**\nWithout this law, elderly Australians could lose their life savings if their aged care provider collapsed. This ensures they get their refundable deposits back even when the provider fails, funded initially by taxpayers but with mechanisms to recover costs from the industry."}},"importantCases":[],"_links":{"self":"/api/acts/aged-care-accommodation-payment-security-act-2006","history":"/api/acts/aged-care-accommodation-payment-security-act-2006/history","analysis":"/api/acts/aged-care-accommodation-payment-security-act-2006/analysis","conflicts":"/api/acts/aged-care-accommodation-payment-security-act-2006/conflicts","importantCases":"/api/acts/aged-care-accommodation-payment-security-act-2006/important-cases","documents":"/api/acts/aged-care-accommodation-payment-security-act-2006/documents"}}