190Simplified outline of this Chapter

190  Simplified outline of this Chapter

Individuals accessing funded aged care services will have the funded aged care services funded through Commonwealth contributions and, in some cases depending on the individual’s means, individual contributions and fees.

The Commonwealth contribution for funded aged care services is generally in the form of a subsidy paid for the delivery of a service to an individual. The amount of the subsidy differs depending on the classification type and service group through which the funded aged care service is delivered and whether the funded aged care service is delivered under certain specialist aged care programs. Various supplements can increase the amount of subsidy payable.

Means testing rules apply for all service groups to determine what individual contributions and fees are payable by the individual for funded aged care services. If individual contributions and fees are payable, the subsidy amount paid to the registered provider for the delivery of the funded aged care service is reduced commensurately.

An individual accessing ongoing funded aged care services through the service group residential care in an approved residential care home, or under a specialist aged care program, may be required to pay for, or contribute to the cost of, accommodation in the home. Whether an individual pays an accommodation payment or an accommodation contribution depends on the individual’s daily means tested amount on the individual’s start day.

Accommodation payments and accommodation contributions may be paid by daily payments, a lump sum (known as a refundable deposit) or a combination of refundable deposit and daily payments.

Part 4 of this Chapter contains rules about registered providers entering into accommodation agreements with individuals, the charging of accommodation payments and accommodation contributions, the circumstances in which a registered provider may use, or deduct an amount from, a refundable deposit and when a refundable deposit must be refunded or transferred.

Part 4 makes provision for that Part not applying in relation to individuals included in a class of individuals prescribed by the rules. The rules may, in relation to the delivery of certain funded aged care services to these individuals, prescribe different requirements that relate to accommodation bonds, accommodation charges or entry contributions.

As an alternative to subsidies, the Commonwealth contribution for some funded aged care services delivered to individuals is by way of a grant of financial assistance to a registered provider. Certain specialist aged care programs are funded this way, including programs for the benefit of Aboriginal and Torres Strait Islander persons.

The Commonwealth also has power to enter into arrangements with entities to make a grant of financial assistance for other purposes related to the Commonwealth aged care system and the aged care system more broadly.