26Provisions that must be contained in extra service agreements

26 Provisions that must be contained in extra service agreements

(1) An extra service agreement must contain provisions that are in accordance with the policy stated in subsections (2) to (5). (2) If the extra service status of the residential care service, or the distinct part of the residential care service, through which the care recipient is provided with care is revoked or suspended, the approved provider must not charge the care recipient the extra service amount in respect of the care recipient’s place for any period after the revocation or during the suspension. (3) The extra service 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 the approved provider, expressed in writing and signed by the parties. However, the 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, the Aged Care (Transitional Provisions) Act 1997 or these principles. (4) The extra service fee paid by the care recipient cannot be increased unless the care recipient is notified in writing of the proposed increase at least 30 days before the proposed increase is to take effect. (5) The extra service agreement is terminated if: (a) the care recipient ceases to be provided with care in the extra service place (other than by going on leave); or (b) the extra service status for the residential care service, or the distinct part of the residential care service, through which the care recipient is provided with care ceases to have effect.

Note: Residential care may not be provided other than on an extra service basis to a care recipient through a residential care service, or a distinct part of a residential care service, that has extra service status except if:

(a) the care recipient was being provided with care through the service, or the distinct part of the service, immediately before the extra service status became effective; and
(b) the care recipient does not enter into an extra service agreement or terminates an extra service agreement within 3 months after the date of effect of the agreement.

Note: See paragraph 32‑8(3)(b) and section 36‑4 of the Act.