This compilation was prepared on 9 July 2009
taking into account amendments up to Extra Service Amendment Principles
2009 (No. 2)
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
Contents
Part 1 Preliminary
14.1 Citation [see Note 1]
14.2 Commencement
14.3 Definitions
Part 2 Meaning of distinct part
14.4 Purpose of Part (Act, s 30-3)
14.5 Other requirements
Part 4 Grant of extra service status
Division 1 The application
14.11 Purpose of Division (Act, s 32-3)
14.12 Application for grant of extra service status
14.13 Application to be signed by appropriate person
Division 2 Class of persons for whom access must not be unreasonably reduced
14.14 Purpose of Division (Act, s 32-4)
14.15 The class
Division 3 Matters to be considered by Secretary
14.16 Purpose of Division (Act, s 32-4)
14.17 Unreasonable reduction of access
14.18 Standard of accommodation, services and food
14.19 Applicant’s record
14.19AA Assessment of relevant key personnel in common
14.19A Assessment of benefit to current and future care recipients
14.19B Diversity of choice for care recipients
14.19C Continuity of care
Division 4 Competitive assessment of applications
14.20 Purpose of Division (Act, s 32-5)
14.21 Assessment of benefit to current and future care recipients
14.21A Diversity of choice for care recipients
14.21B Continuity of care
14.21C Other matters
Part 5 Conditions of grant of extra service status
Division 1 Additional conditions
14.24 Purpose of Division (Act, s 32-8)
14.25 Additional conditions
Division 2 Variation of conditions
14.26 Purpose of Division (Act, s 32-8)
14.27 The requirement
Part 6 Extra service fees
Division 1 Approval of extra service fees
14.28 Purpose of Division (Act, s 35-1)
14.29 The requirement
14.30 How Secretary may be satisfied
Division 2 Applications for approval
14.31 Purpose of Division (Act, s 35-2)
14.32 Additional requirement
Division 3 Amount of extra service fee
14.33 Purpose of Division (Act, s 35-3)
14.34 Maximum amount
Part 7 Extra service agreements
Division 1 Entering extra service agreements
14.35 Purpose of Division (Act, s 36-2)
14.36 The requirements
Division 2 Contents of extra service agreements
14.37 Purpose of Division (Act, s 36-3)
14.38 Contents of extra service agreements
Notes
Note: Part 2.5 of the Aged Care Act 1997
Note: Part 2.5 of the Aged Care Act 1997 is about the process of allowing places in a residential care service to become extra service places. Extra service places involve providing a significantly higher standard of accommodation, food and services to care recipients. Extra service places can attract higher resident fees, but a lower amount of residential care subsidy is payable.
Note: These Principles deal with various aspects of extra service places.
Part 1 Preliminary
14.1 Citation [see Note 1]
These Principles may be cited as the Extra Service Principles 1997.
14.2 Commencement
These Principles commence on 1 October 1997.
14.3 Definitions
In these Principles:
Act means the Aged Care Act 1997.
aged care payment, for an approved provider, means a payment, for providing aged care, made by the Commonwealth under:
(a) the Act; or
(b) the Aged or Disabled Persons Care Act 1954; or
(c) the National Health Act 1953.
extra service amount has the meaning given by section 58-5 of the Act.
GST has the same meaning as in section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999.
special needs group means a group of people specified in section 11-3 of the Act.
<table cellspacing="0" cellpadding="0" style="border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr><td colspan="2" style="width:412.8pt; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="HB" style="margin-bottom:12pt; page-break-inside:avoid; page-break-after:avoid; line-height:13pt"><span>Note:</span><span> </span><span></span><span>Definitions</span></p><p class="Notebox"><span style="font-family:Arial, sans-serif">A number of expressions used in these Principles are defined in the </span><span style="font-family:Arial, sans-serif; font-style:italic">Aged Care Act 1997</span><span style="font-family:Arial, sans-serif"> (see Dictionary in Schedule 1), including:</span></p></td></tr><tr><td style="width:200.15pt; padding-right:5.4pt; padding-left:5.03pt; vertical-align:top"><ul style="margin:0pt; padding-left:0pt"><li class="boxdot2" style="margin-left:28.06pt; margin-bottom:3pt; text-indent:0pt; padding-left:7.94pt; font-family:serif"><span style="font-family:Helvetica, sans-serif">aged care</span></li><li class="boxdot2" style="margin-left:28.06pt; margin-bottom:3pt; text-indent:0pt; padding-left:7.94pt; font-family:serif"><span style="font-family:Helvetica, sans-serif">approved provider</span></li><li class="boxdot2" style="margin-left:28.06pt; margin-bottom:3pt; text-indent:0pt; padding-left:7.94pt; font-family:serif"><span style="font-family:Helvetica, sans-serif">extra service agreement</span></li></ul></td><td style="width:201.85pt; padding-right:5.03pt; padding-left:5.4pt; vertical-align:top"><ul style="margin:0pt; padding-left:0pt"><li class="boxdot2" style="margin-left:28.06pt; margin-bottom:3pt; text-indent:0pt; padding-left:7.94pt; font-family:serif"><span style="font-family:Helvetica, sans-serif">extra service place</span></li><li class="boxdot2" style="margin-left:28.06pt; margin-bottom:3pt; text-indent:0pt; padding-left:7.94pt; font-family:serif"><span style="font-family:Helvetica, sans-serif">extra service status</span></li><li class="boxdot2" style="margin-left:28.06pt; text-indent:0pt; padding-left:7.94pt; font-family:serif"><span style="font-family:Helvetica, sans-serif">residential care.</span></li></ul></td></tr></tbody></table>
Part 2 Meaning of distinct part
14.4 Purpose of Part (Act, s 30-3)
This Part specifies additional requirements for a distinct part of a residential care service.
14.5 Other requirements
The following requirements must be met for the area of the service:
(a) the area must include dining and lounge areas (located together or separately) that are allocated for the exclusive use of care recipients living in the area;
(b) the area must include at least 5 places.
Part 4 Grant of extra service status
Division 1 The application
14.11 Purpose of Division (Act, s 32-3)
This Division specifies additional requirements that must be met by an application for a grant of extra service status.
14.12 Application for grant of extra service status
The application must:
(a) include the following particulars:
(i) the name of the residential care service or proposed residential care service;
(ii) the address of the place where the service is provided or proposed to be provided;
(iii) the postal address of the service or the proposed service; and
(b) set out, in enough detail to allow the Secretary to consider the application properly:
(i) the number and nature of proposed extra services; and
(ii) the hours for which, or frequency with which, they will be provided; and
(iii) information required for consideration of criteria mentioned under section 32-4 of the Act, including the matters mentioned in Division 3 of this Part; and
(iv) information required for consideration of the competitive assessment of applications under section 32-5 of the Act, including the matters mentioned in Division 4 of this Part; and
(c) if the application is for an area that is claimed to be a distinct part of a residential care service — explain how the area is a distinct part.
14.13 Application to be signed by appropriate person
(1) The application must be signed by a person authorised, in writing, to act for the applicant.
(2) The application must state:
(a) the position and title of the person signing the application; and
(b) that the person is authorised to act for the applicant.
Division 2 Class of persons for whom access must not be unreasonably reduced
14.14 Purpose of Division (Act, s 32-4)
This Division specifies a class of persons for whom access to residential care must not be unreasonably reduced by a grant of extra service status.
14.15 The class
The class is people aged at least 70 whom the Secretary believes would have difficulty affording an extra service amount.
Division 3 Matters to be considered by Secretary
14.16 Purpose of Division (Act, s 32-4)
This Division specifies matters to which the Secretary must have regard for criteria mentioned in subsection 32-4 (1) of the Act for considering an application for extra service status.
14.17 Unreasonable reduction of access
(1) This section specifies matters to which the Secretary must have regard for the criterion in paragraph 32-4 (1) (a) of the Act.
Note The paragraph deals with whether granting extra service status would unreasonably reduce access to residential care by certain groups of people.
(2) The Secretary must have regard to the following matters:
(a) the proportion (if any) determined under section 12-5 of the Act as the proportion of residential care that must be provided to supported, concessional and assisted residents in the State, Territory or region concerned;
(b) the number of allocated places in the State, Territory or region;
(c) the estimated number of places in the State, Territory or region providing care mainly or exclusively to special needs groups.
(3) However, the Secretary may also have regard to any other relevant matter.
14.18 Standard of accommodation, services and food
(1) This section specifies matters to which the Secretary must have regard for the criterion in paragraph 32-4 (1) (b) of the Act.
Note The paragraph deals with the proposed standard of accommodation, services and food for each place.
(2) The Secretary must have regard to the following matters:
(a) the proposed standard of accommodation, services and food, taken as a whole;
(b) for accommodation — the nature of the accommodation, including, for example:
(i) the proportions of rooms with 1, 2, 3 and 4 or more places; and
(ii) the availability of private ensuite facilities; and
(iii) the availability of living, dining and recreation areas; and
(iv) the size of residents’ rooms, ensuites, dining and lounge areas; and
(v) the availability of outdoor facilities such as gardens or sitting areas;
(c) for services and food — the range, quality, and quantity or frequency of items offered, including the extent of choice offered to care recipients.
(3) However, the Secretary may also have regard to any other relevant matter.
14.19 Applicant’s record
(1) This section specifies matters to which the Secretary must have regard for the criterion in paragraph 32-4 (1) (c) of the Act.
Note The paragraph deals with the applicant’s record of conduct as a provider of aged care, compliance with its responsibilities as a provider, and meeting its obligations arising from the receipt of payments from the Commonwealth for providing aged care.
(2) The Secretary must have regard to the following matters:
(a) whether, during the relevant period, aged care services operated by the applicant had a very good record of compliance with standards of care and meeting obligations arising from the receipt of payments from the Commonwealth for providing aged care;
(b) if any standards or obligations mentioned in paragraph (a) have been breached during the relevant period:
(i) the nature of the standard or obligation; and
(ii) the nature and extent of the breach.
(3) However, the Secretary may also have regard to any other relevant matter.
(4) In this section:
relevant period means 3 years immediately before the making of the application.
14.19AA Assessment of relevant key personnel in common
(1) This section specifies matters to which the Secretary must have regard for the criterion in paragraph 32-4(1) (ca) of the Act.
Note The paragraph deals with whether a person with whom the applicant has relevant key personnel in common and who is or has been an approved provider has a very good record of conduct, compliance or meeting its obligations arising from the receipt of any payments from the Commonwealth for providing aged care.
(2) The Secretary must have regard to the following matters:
(a) whether the person who is or has been an approved provider was non-compliant with any responsibilities or obligations arising from the receipt of any payments from the Commonwealth for providing aged care; and
(b) if any responsibilities or obligations mentioned in paragraph (a) have been breached:
(i) the nature of the responsibility or obligation;
(ii) the nature and extent of the breach;
(iii) the role of the relevant key personnel in common with the applicant in the breach; and
(iv) the role of the relevant key personnel in common with the applicant in any rectification of the breach.
(3) However, the Secretary may also have regard to any other relevant matter.
14.19A Assessment of benefit to current and future care recipients
(1) This section specifies other matters that must be satisfied for the criterion in paragraph 32-4 (1) (e) of the Act.
(2) The Secretary must be satisfied that there will be significant benefit to current and future care recipients in the region if the application is granted.
Example
Examples of matters that are indicative of likely benefits for this section include:
(a) whether the application includes innovations which would enhance service delivery to care recipients in the region; and
(b) how the applicant will ensure that current and future care recipients are fully informed about the fees and charges imposed, and the services that are provided.
14.19B Diversity of choice for care recipients
(1) This section specifies other matters that must be satisfied for the criterion in paragraph 32-4 (1) (e) of the Act.
(2) The Secretary must be satisfied that there will be a significantly increased diversity of choice for current and future care recipients, and their carers and families, if the application is granted, in relation to:
(a) the different kinds of extra services offered in the region; or
(b) the different groups of care recipients who are offered extra service in the region.
Examples for paragraph (a)
Kinds of service may relate to extra service packages that offer a greater range of choice as to:
the type, frequency, variety and quality of services and food available
the relevant fee structures applicable.
Examples for paragraph (b)
Groups of care recipients who are offered extra service include care recipients who:
are affected by dementia
belong to an ethnic community
belong to an indigenous community
are high or low care care recipients
are couples
wish to age in place.
14.19C Continuity of care
(1) This section specifies other matters that must be satisfied for the criterion in paragraph 32-4 (1) (e) of the Act.
(2) The Secretary must be satisfied that the extra services would provide current and future care recipients in the region with better access to continuity of care if the application is granted.
Example
If the region has a low proportion of services certified under Part 2.6 of the Act, or services that may not continue to operate, the Secretary may take into account whether the extra service will improve the long-term financial and organisational viability of the service if the application is granted.
The Secretary may also take into account whether the service has made suitable arrangements for continuity of care for existing care recipients during the transition to extra service status.
Division 4 Competitive assessment of applications
14.20 Purpose of Division (Act, s 32-5)
This Division specifies matters to which the Secretary is to have regard in determining under section 32-5 of the Act which applications best meet the criteria set out in section 32-4 of the Act.
14.21 Assessment of benefit to current and future care recipients
In having regard to the matter mentioned in section 14.19A, the Secretary must give priority to the applications that demonstrate the greater or greatest capacity to benefit current and future care recipients in the region.
14.21A Diversity of choice for care recipients
In having regard to the matters mentioned in section 14.19B, the Secretary must give priority to the applications that demonstrate the greater or greatest capacity to increase diversity of choice for current and future care recipients, their carers and families.
14.21B Continuity of care
In having regard to the matter mentioned in section 14.19C, the Secretary must give priority to the applications that demonstrate the better or best capacity to offer continuity of care to current and future care recipients in the region.
14.21C Other matters
However, the Secretary may also have regard to any other relevant matter.
Part 5 Conditions of grant of extra service status
Division 1 Additional conditions
14.24 Purpose of Division (Act, s 32-8)
This Division specifies conditions that are taken to be included in the conditions of a grant of extra service status set out in the most recent notice given to an approved provider under section 32-9 of the Act.
14.25 Additional conditions
(1) The conditions are taken to include the following conditions:
(a) the accommodation, services and food specified in the conditions set out in the notice must be provided to a care recipient without an additional charge, other than:
(i) the approved extra service amount; and
(ii) the amount of GST payable, if any, on the supply of a service:
(A) that is not a service specified in Schedule 1 to the Quality of Care Principles; and
(B) that is provided to the care recipient on an extra service basis under section 36-1 of the Act;
(b) if the extra service status has not become effective and a condition set out in the notice must be met before it becomes effective — the provider must, at least the required number of days before the day when the provider proposes that the extra service status will become effective, notify the Secretary in writing that the provider considers that the service or distinct part will be able to meet the conditions from that day;
(c) each care recipient who is receiving care in the service, or distinct part, on a non-extra service basis immediately before the extra service status starts must be offered the choice to occupy his or her place on an extra service basis;
(d) each care recipient who is receiving care in the service, or distinct part, on a non-extra service basis immediately before the extra service status starts may continue to receive care on a non-extra service basis, and must be treated as a non-extra service care recipient, during his or her stay in the residential care service if the care recipient (or the care recipient’s representative) does not elect to receive care on an extra service basis.
(2) For paragraph (1) (d), all conditions under the Act about security of tenure and approved provider responsibilities applying to non-extra service care recipients continue to apply to the care recipient.
(3) For paragraph (1) (b), the required number of days is:
(a) if the extra service status is proposed to become effective less than 60 days after the notice is given — 7 days; and
(b) in any other case — 28 days.
Division 2 Variation of conditions
14.26 Purpose of Division (Act, s 32-8)
This Division sets out a requirement for variation of the conditions of a grant of extra service status.
14.27 The requirement
(1) The Secretary must consider the extent of any change in the level of accommodation, food and services resulting from the proposed variation.
(2) However, the Secretary may also consider any other relevant matter.
Part 6 Extra service fees
Division 1 Approval of extra service fees
14.28 Purpose of Division (Act, s 35-1)
This Division sets out a requirement that must be met before the Secretary may approve extra service fees for a residential care service or a distinct part of a residential care service and how the Secretary may be satisfied about the requirement.
14.29 The requirement
(1) All aged care services operated by the applicant must have had, during the relevant period, a very good record of compliance with standards of care and meeting obligations arising from the receipt of payments from the Commonwealth for providing aged care.
(2) In this section:
relevant period means 3 years immediately before the making of the application.
14.30 How Secretary may be satisfied
(1) If any standards or obligations mentioned in section 14.29 have been breached, then, in deciding whether the aged care service has the required record, the Secretary must have regard to:
(a) the nature of the standard or obligation; and
(b) the nature and extent of the breach.
(2) However, the Secretary may also have regard to anything else the Secretary considers relevant.
Division 2 Applications for approval
14.31 Purpose of Division (Act, s 35-2)
This Division sets out additional requirements that must be satisfied by an application for approval of extra service fees.
14.32 Additional requirement
If the application is not included in an application under Division 32 of the Act for a grant of extra service status, the application must be made at least 60 days before the day when the applicant proposes that the fees will take effect.
Division 3 Amount of extra service fee
14.33 Purpose of Division (Act, s 35-3)
This Division specifies the manner in which the maximum amount by which an extra service fee may be increased is to be worked out.
14.34 Maximum amount
The maximum amount is the total of:
(a) 20% of the current fee; and
(b) the amount by which the current fee would change if it were indexed in accordance with the percentage change in the All Groups Consumer Price Index number (that is, the weighted average of the 8 capital cities) published by the Australian Statistician for the most recent 12 month period before the making of the application.
Part 7 Extra service agreements
Division 1 Entering extra service agreements
14.35 Purpose of Division (Act, s 36-2)
This Division sets out requirements that must not be contravened in entering into an extra service agreement.
14.36 The requirements
The requirements are:
(a) the care recipient and approved provider must be treated as equal parties under the agreement; and
(b) the provider must tell the care recipient, either directly or through the care recipient’s representative, what the terms of the proposed agreement are, and assist the care recipient or care recipient’s representative to understand them; and
(c) the agreement must be signed by the approved provider and the care recipient or the care recipient’s representative.
Division 2 Contents of extra service agreements
14.37 Purpose of Division (Act, s 36-3)
This Division sets out provisions that must be contained in an extra service agreement.
14.38 Contents of extra service agreements
The terms of the provisions are as follows:
If the extra service status of the residential care service is revoked or suspended, the approved provider must not charge the care recipient the extra service amount for any period after the revocation or during the suspension.
This agreement may be varied:
(a) by the approved provider, if:
(i) the variation is necessary to implement the A New Tax System (Goods and Services Tax) Act 1999; and
(ii) the approved provider has given reasonable notice in writing about the variation to the care recipient; or
(b) in any other case, by the mutual consent of the care recipient and approved provider, expressed in writing and signed by the parties.
However, this agreement must not be varied in a way that is inconsistent with the A New Tax System (Goods and Services Tax) Act 1999, the Aged Care Act 1997 or the Extra Service Principles 1997.
This agreement is terminated if the care recipient ceases to be provided with care in the place (other than by going on leave) or if the extra service status for the place ceases to have effect.
Note Under paragraph 32-8 (3) (b) and section 36-4 of the Act, residential care may not be provided in a residential care service or distinct part that has extra service status other than on an extra service basis, except to a care recipient who was a resident in the service or distinct part immediately before the extra service status became effective, and who either does not enter into an extra service agreement or terminates an agreement within 3 months of the date of effect of the agreement.
Notes to the Extra Service Principles 1997
Note 1
Note: The Extra Service Principles 1997 (in force under subsection 96-1 (1) of the Aged Care Act 1997) as shown in this compilation are amended as indicated in the Tables below.
Note: Table of Instruments
Title
Date of notificationin Gazette or FRLI registration