{"id":"C2006A00027","name":"Aged Care (Accommodation Payment Security) Levy Act 2006","slug":"aged-care-accommodation-payment-security-levy-act-2006","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"27 of 2006","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":53184,"registerId":"commonwealth-C2006A00027-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"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) Levy Act 2006.","sortOrder":0},{"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 10

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":1},{"sectionNumber":"3","sectionType":"section","heading":"Application of this Act","content":"#### 3 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":2},{"sectionNumber":"4","sectionType":"section","heading":"Binding the Crown","content":"#### 4 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":3},{"sectionNumber":"5","sectionType":"section","heading":"Definitions","content":"#### 5 Definitions\n\n In this Act:\n\n> accommodation payment balance has the same meaning as in the Aged Care (Accommodation Payment Security) Act 2006.\n\n> costs recoupment determination means:\n\n (a) a refund costs recoupment determination within the meaning of the Aged Care (Accommodation Payment Security) Act 2006; or\n (b) an administrative costs recoupment determination within the meaning of that Act.\n\n> default event declaration has the same meaning as in the Aged Care (Accommodation Payment Security) Act 2006.\n\n> levy means levy imposed by regulations under section 6.\n\n> outstanding accommodation payment balance has the same meaning as in the Aged Care (Accommodation Payment Security) Act 2006.\n\n> registered provider has the same meaning as in the Aged Care Act 2024.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Regulations may impose levy","content":"#### 6 Regulations may impose levy\n\n (1) If a costs recoupment determination specifying a default event declaration has been made, the regulations may impose a levy in respect of the refund obligations of registered providers relating to the default event declaration.\n (2) For the purposes of subsection (1), the refund obligations of registered providers relating to a default event declaration is the set of obligations that the registered providers would have had, at the start of the day that was 10 days before the day on which the default event declaration was made, to refund accommodation payment balances if it were assumed that at that time the accommodation payment balances became outstanding accommodation payment balances.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Rate of levy","content":"#### 7 Rate of levy\n\n The rate of the levy is worked out in accordance with the regulations.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Maximum rate of levy","content":"#### 8 Maximum rate of levy\n\n The rate of the levy is to be fixed on the basis that the amount of revenue to be raised by the levy must not exceed the costs recoupment amount specified in the costs recoupment determination, the making of which enabled the levy to be imposed.","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Levy may discriminate between classes of registered providers","content":"#### 9 Levy may discriminate between classes of registered providers\n\n (1) Regulations imposing a levy:\n (a) may provide different rates (including a zero rate) of the levy for different classes of registered providers; but\n (b) must not otherwise discriminate between different registered providers.\n (2) Regulations imposing a levy may define what constitutes a class of registered providers for the purposes of the levy, but must not define a class in such a way that the levy would discriminate between States or parts of States.","sortOrder":8},{"sectionNumber":"10","sectionType":"section","heading":"Regulations","content":"#### 10 Regulations\n\n 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.","sortOrder":9}],"analysis":{"summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act appears narrowly focused on its stated purpose: imposing a levy on registered aged care providers to recoup costs arising from accommodation payment defaults. There is no indication the scope has shifted from its original intent. The provisions are tightly constrained — the levy can only be imposed in specific circumstances, is capped at actual costs, and anti-discrimination rules limit how it can be structured."},"complexity_factors":["Relies heavily on definitions and concepts from a companion Act (Aged Care (Accommodation Payment Security) Act 2006) and the Aged Care Act 2024, requiring cross-referencing to fully understand","The levy mechanism is triggered by a multi-step process involving 'default event declarations' and 'costs recoupment determinations', which are defined elsewhere","Technical calculation of 'refund obligations' references a specific 10-day look-back period before the default event declaration, which could be tricky to apply in practice","Levy rates and impositions are left entirely to regulations (delegated legislation), meaning the operative details of the levy are not contained in the Act itself","Geographic application provisions include nuanced carve-outs for external territories"],"plain_english_summary":"This Act lets the government recover the cost of refunding residents’ accommodation payments if an aged‑care provider formally fails, by imposing a compulsory levy on other registered aged‑care providers. The levy is only triggered after a declared default, is capped at the actual costs the government paid, and can vary by provider class (including zero rates).\n\nIt applies across all States and specified territories, binds the Crown, and is designed to protect residents by spreading the financial burden across the industry."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This Act appears to serve its original narrow purpose: establishing a levy mechanism to fund refunds of accommodation payments after provider defaults. The scope remains tightly focused on this specific financial safety net function without apparent expansion into broader aged care funding or regulatory matters."},"complexity_factors":["Heavy reliance on definitions from companion legislation (Aged Care (Accommodation Payment Security) Act 2006 and Aged Care Act 2024) — 5 key terms are simply 'borrowed' from other Acts","Counterfactual logic in section 6(2): the levy applies to hypothetical obligations that would have existed 10 days before a declaration, assuming balances became 'outstanding' at that time","Conditional triggering mechanism: levy only imposed if a 'costs recoupment determination' with a 'default event declaration' exists","Delegated legislative power: actual levy rates and calculation methods left entirely to regulations (sections 6-7)","Anti-discrimination safeguards with exceptions: allows differential rates by 'class' but prohibits state-based discrimination (section 9)"],"plain_english_summary":"This law creates a special tax (called a 'levy') on aged care providers to help pay back residents who've lost money when a provider goes bust.\n\n**What it does:**\n- Allows the government to charge aged care providers a levy when there's been a 'default event' — basically when a provider fails financially and can't refund money owed to residents\n- The money raised goes toward covering the costs of refunding residents' 'accommodation payments' (these are lump sums people pay to secure a spot in an aged care home, which should be refunded when they leave)\n\n**Who it affects:**\n- **Registered aged care providers** — they may have to pay this levy if another provider collapses\n- **Aged care residents** — indirectly protected, as the levy helps ensure they get their money back if their provider fails\n\n**How it works:**\n- The levy is triggered by a 'costs recoupment determination' — a formal decision that a provider has defaulted\n- The levy rate is set by regulations (rules made by the government), but can't exceed the actual amount needed to cover refund costs\n- Different providers might pay different rates based on their 'class' (size, type, etc.), but the rules can't unfairly target providers from particular states\n\n**Why it matters:**\nThis is a safety net mechanism. When an aged care provider collapses, residents can lose substantial accommodation deposits. This law ensures the industry collectively chips in to cover those losses, rather than leaving residents empty-handed or relying solely on government bailouts."},"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"},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The supplied text contains the Act as originally framed and sets a narrow regulatory power to impose a levy in circumstances of a default event. There is no material in the source indicating any change of scope from the original enactment; application and territorial coverage are set out in s3."},"complexity_factors":["Cross-references to other statutes for key terms and triggers (definitions and event meanings are in the Aged Care (Accommodation Payment Security) Act 2006 and the Aged Care Act 2024) (s5).","Delegated detail left to regulations: levy calculation, rates, classes and procedural matters are not in the Act and require subordinate instruments (ss6,7,9,10).","Numerical cap linking revenue to a separate costs recoupment determination creates a coordination requirement between determinations and regulations (s8).","Temporal valuation rule: levy base is defined by assuming which accommodation payment balances became outstanding 10 days before the default event declaration — punctuality and valuation issues for administrators and providers (s6(2)).","Permitted differentiation between classes of providers but prohibition on geographic discrimination adds drafting and compliance nuance for regulation-makers (s9).","Binding the Crown but excluding criminal liability may affect enforcement and recoveries against government operators (s4).","Short, focused Act reduces statutory complexity but increases reliance on external instruments and factual findings (commencement, table and notes also reference original-passage detail) (ss1–3)."],"plain_english_summary":"Mechanically, the Act gives power for regulations to impose a levy on registered aged‑care providers to recover a specified ‘costs recoupment amount’ after a declared default event; the levy rate and calculation are set by regulation and cannot raise more than the recoupment amount (ss6–8). Registered providers with refund obligations for accommodation payments are the payers; the Governor‑General makes regulations that fix rates, define provider classes and the levy basis, and the levy is calculated on assumed outstanding balances 10 days before the declaration (ss6,9,10)."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/aged-care-accommodation-payment-security-levy-act-2006","history":"/api/acts/aged-care-accommodation-payment-security-levy-act-2006/history","analysis":"/api/acts/aged-care-accommodation-payment-security-levy-act-2006/analysis","conflicts":"/api/acts/aged-care-accommodation-payment-security-levy-act-2006/conflicts","importantCases":"/api/acts/aged-care-accommodation-payment-security-levy-act-2006/important-cases","documents":"/api/acts/aged-care-accommodation-payment-security-levy-act-2006/documents"}}