71Formal agreements between hostel operators and residents

#### 71 Formal agreements between hostel operators and residents (1) Subject to this section, if: (a) immediately before the commencement day, a Formal Agreement (within the meaning of the General Conditions formulated under section 10F of the 1954 Act) was in force; and (b) the Formal Agreement was entered into between an eligible person (within the meaning of the 1954 Act) and an approved operator (within the meaning of the 1954 Act) of a hostel; for the purposes of paragraph 56-1(g) of the new Act, the Formal Agreement is taken to be a \*resident agreement that: (c) the \*approved provider conducting the \*residential care service that corresponds to the hostel had, on the commencement day, offered to enter into with the eligible person; and (d) the approved provider and the eligible person had entered into on the commencement day. (2) If: (a) ongoing fees are payable under the Formal Agreement by the person for the provision of accommodation and care; and (b) the amount of ongoing fees payable in respect of the commencement day or a subsequent day would exceed the amount of the resident fee that may be charged under paragraph 58-1(a) of the new Act in respect of that day; the amount of the resident fee that may be charged under that paragraph in respect of that day is an amount not exceeding the amount of ongoing fees payable in respect of that day. (3) If: (a) before the commencement day, the person had, under the Formal Agreement, paid, or agreed to pay, an entry contribution (within the meaning of the General Conditions formulated under section 10F of the 1954 Act) to the approved operator; and (b) immediately before the commencement day, the person was an existing resident (within the meaning of section 10F of the 1954 Act), or a new resident (within the meaning of that section), of the hostel; then: (c) on and after the commencement day, paragraph 56-1(a) of the new Act applies as if the requirements referred to in that paragraph were the requirements of the General Conditions formulated under section 10F of the 1954 Act, as they relate to entry contributions; and (d) subject to paragraph (e), on and after the commencement day, Division 57 of the new Act does not apply in relation to the entry contribution; and (e) on and after the day that Schedule 2 to the Aged Care Amendment (2005 Measures No. 1) Act 2006 commenced: (i) the Prudential Standards made under section 57‑4 of the new Act; and (ii) section 57‑21B of the new Act; apply in relation to the entry contribution. (4) If: (a) before the commencement day, the person had, under the Formal Agreement, paid, or agreed to pay, an entry contribution (within the meaning of the General Conditions formulated under section 10F of the 1954 Act) to the approved operator; and (b) on or after the commencement day, the person ceases being provided with \*residential care through the \*residential care service (the original service) that corresponds to the hostel (other than because the care recipient is on \*leave); and (c) the person enters another residential care service within 28 days after the day on which the person ceased being provided with care by the original service; for the purposes of the new Act: (d) the amount of the entry contribution that is refundable to the person under the Formal Agreement is taken to be the maximum amount of the \*accommodation bond for the entry of the person to the other service; and (e) the amount of the entry contribution that is so refundable is to be refunded to the person in accordance with subsection 57-21(3) as if that amount were an \*accommodation bond balance. (5) For the purposes of subsection 57-20(5) of the new Act, if: (a) before the commencement day, the person had, under the Formal Agreement, paid, or agreed to pay, an entry contribution (within the meaning of the General Conditions formulated under section 10F of the 1954 Act) to the approved operator; and (b) before, on or after the commencement day, the approved operator has retained an amount from the entry contribution in respect of a period; each month included in that period is taken to be a month in respect of which a retention amount was deducted from an \*accommodation bond balance in respect of an \*accommodation bond previously paid by the person.