242Provider‑based reduction amount

242  Provider‑based reduction amount

 (1) The provider‑based subsidy reduction for a registered provider for the classification types ongoing for the service group residential care for an individual for a day is worked out as follows:

Step 1: Work out the daily means tested amount for the individual for the day (see section 319).

Step 2: Subtract the sum of the following from the daily means tested amount:

 (a) the maximum accommodation supplement amount (see subsection 235(3));

Step 3. If the Step 2 amount does not exceed zero, the provider‑based subsidy reduction is zero.

Step 4. If the Step 2 amount exceeds zero, the provider‑based subsidy reduction is the lesser of the following:

 (a) the Step 2 amount;

 (b) the maximum non‑clinical care contribution (see subsection 279(3));

 (c) the standard base provider amount (see subsection (2)).

 (2) The standard base provider amount for a day for an individual is the amount prescribed by the rules.

 (3) If the individual has means not disclosed status for a day, the provider‑based subsidy reduction for the day is the lesser of the following:

 (a) the maximum non‑clinical care contribution for the day;

 (b) the standard base provider amount for that day.

 (4) Despite subsection (1), the provider‑based subsidy reduction for a registered provider for the classification type ongoing for the service group residential care for an individual for a day is zero if:

 (a) the hotelling contribution and non‑clinical care contribution for the individual for the day is taken to be zero under section 280; or

 (b) the non‑clinical care contribution for the individual for the day is zero under subsection 279(4) or (5).