Aged Care (Living Longer Living Better)Act 2013 (76 of 2013)
Schedule 3 Amendments commencing on 1 July 2014
Part 1 Amendments
Aged Care Act 1997
118 At the end of Subdivision 44-E
Add:
44-26A The value of a person's assets
(1) Subject to this section, the value of a person's assets for the purposes of section 44-22 is to be worked out in accordance with the Subsidy Principles.
(2) If a person who is receiving an *income support supplement or a *service pension has an income stream (within the meaning of the Veterans' Entitlements Act 1986) that was purchased on or after 20 September 2007, the value of the person's assets:
(a) is taken to include the amount that the Secretary determines to be the value of that income stream that would be included in the value of the person's assets if Subdivision A of Division 11 of Part IIIB of the Veterans' Entitlements Act 1986 applied for the purposes of this Act; and
(b) is taken to exclude the amount that the Secretary determines to be the value of that income stream that would not be included in the value of the person's assets if Subdivision A of Division 11 of Part IIIB of the Veterans' Entitlements Act 1986 applied for the purposes of this Act.
(3) If a person who is not receiving an *income support supplement or a *service pension has an income stream (within the meaning of the Social Security Act 1991) that was purchased on or after 20 September 2007, the value of the person's assets:
(a) is taken to include the amount that the Secretary determines to be the value of that income stream that would be included in the value of the person's assets if Division 1 of Part 3.12 of the Social Security Act 1991 applied for the purposes of this Act; and
(b) is taken to exclude the amount that the Secretary determines to be the value of that income stream that would not be included in the value of the person's assets if Division 1 of Part 3.12 of the Social Security Act 1991 applied for the purposes of this Act.
(4) The value of a person's assets is taken to include the amount that the Secretary determines to be the amount:
(a) if the person is receiving an *income support supplement or a *service pension - that would be included in the value of the person's assets if Subdivisions B and BB of Division 11 and Subdivision H of Division 11A of Part IIIB of the Veterans' Entitlements Act 1986 applied for the purposes of this Act; and
(b) otherwise - that would be included in the value of the person's assets if Division 2 of Part 3.12 and Division 8 of Part 3.18 of the Social Security Act 1991 applied for the purposes of this Act.
Note 1: Subdivisions B and BB of Division 11 of Part IIIB of the Veterans' Entitlements Act 1986, and Division 2 of Part 3.12 of the Social Security Act 1991, deal with disposal of assets.
Note 2: Subdivision H of Division 11A of Part IIIB of the Veterans' Entitlements Act 1986, and Division 8 of Part 3.18 of the Social Security Act 1991, deal with the attribution to individuals of assets of private companies and private trusts.
(5) If a person has paid a *refundable deposit, the value of the person's assets is taken to include the amount of the *refundable deposit balance.
(6) In working out the value at a particular time of the assets of a person who is or was a *homeowner, disregard the value of a home that, at the time, was occupied by:
(a) the *partner or a *dependent child of the person; or
(b) a carer of the person who:
(i) had occupied the home for the past 2 years; and
(ii) was eligible to receive an *income support payment at the time; or
(c) a *close relation of the person who:
(i) had occupied the home for the past 5 years; and
(ii) was eligible to receive an *income support payment at the time.
(7) In working out the value at a particular time of the assets of a person who is or was a *homeowner, disregard the value of a home to the extent that it exceeded the *maximum home value in force at that time.
(8) The value of the assets of a person who is a *member of a couple is taken to be 50% of the sum of:
(a) the value of the person's assets; and
(b) the value of the assets of the person's *partner.
(9) A reference to the value of the assets of a person is, in relation to an asset owned by the person jointly or in common with one or more other people, a reference to the value of the person's interest in the asset.
(10) A determination under paragraph (2)(a), (2)(b), (3)(a) or (3)(b) or subsection (4) is not a legislative instrument.
44-26B Definitions relating to the value of a person's assets
(1) In section 44-26A, and in this section:
child : without limiting who is a child of a person for the purposes of this section and section 44-26A, each of the following is the child of a person:
(a) a stepchild or an adopted child of the person;
(b) someone who would be the stepchild of the person except that the person is not legally married to the person's partner;
(c) someone who is a child of the person within the meaning of the Family Law Act 1975;
(d) someone included in a class of persons specified for the purposes of this paragraph in the Subsidy Principles.
close relation , in relation to a person, means:
(a) a parent of the person; or
(b) a sister, brother, child or grandchild of the person; or
(c) a person included in a class of persons specified in the Subsidy Principles.
Note: See also subsection (5).
dependent child has the meaning given by subsection (2).
homeowner has the meaning given by the Subsidy Principles.
maximum home value means the amount determined by the Minister by legislative instrument.
member of a couple means:
(a) a person who is legally married to another person, and is not living separately and apart from the person on a permanent basis; or
(b) a person whose relationship with another person (whether of the same sex or a different sex) is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section, and who is not living separately and apart from the other person on a permanent basis; or
(c) a person who lives with another person (whether of the same sex or a different sex) in a de facto relationship, although not legally married to the other person.
parent : without limiting who is a parent of a person for the purposes of this section and section 44-26A, someone is the parent of a person if the person is his or her child because of the definition of child in this section.
partner , in relation to a person, means the other *member of a couple of which the person is also a member.
(2) A young person (see subsection (3)) is a dependent child of a person (the adult ) if:
(a) the adult:
(i) is legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of the young person; or
(ii) is under a legal obligation to provide financial support in respect of the young person; and
(b) in a subparagraph (a)(ii) case - the adult is not included in a class of people specified for the purposes of this paragraph in the Subsidy Principles; and
(c) the young person is not:
(i) in full-time employment; or
(ii) in receipt of a social security pension (within the meaning of the Social Security Act 1991) or a social security benefit (within the meaning of that Act); or
(iii) included in a class of people specified in the Subsidy Principles.
(3) A reference in subsection (2) to a young person is a reference to any of the following:
(a) a person under 16 years of age;
(b) a person who:
(i) has reached 16 years of age, but is under 25 years of age; and
(ii) is receiving full-time education at a school, college or university;
(c) a person included in a class of people specified in the Subsidy Principles.
(4) The reference in paragraph (2)(a) to care does not have the meaning given in the Dictionary in Schedule 1.
(5) For the purposes of paragraph (b) of the definition of close relation in subsection (1), if one person is the child of another person because of the definition of child in this section, relationships traced to or through the person are to be determined on the basis that the person is the child of the other person.
44-26C Determination of value of person's assets
Making determinations
(1) The Secretary must determine the value, at the time specified in the determination, of a person's assets in accordance with section 44-26A, if the person:
(a) applies in the approved form for the determination; and
(b) gives the Secretary sufficient information to make the determination.
The time specified must be at or before the determination is made.
Note 1: Determinations are reviewable under Part 6.1.
Note 2: An application can be made under this section for the purposes of section 52J-5: see subsection 52J-5(3).
Giving notice of the determination
(2) Within 14 days after making the determination, the Secretary must give the person a copy of the determination.
When the determination is in force
(3) The determination is in force for the period specified in, or worked out under, the determination.
(4) However, the Secretary may by written instrument revoke the determination if he or she is satisfied that it is incorrect. The determination ceases to be in force on a day specified in the instrument (which may be before the instrument is made).
Note: Revocations of determinations are reviewable under Part 6.1.
(5) Within 14 days after revoking the determination, the Secretary must give written notice of the revocation and the day the determination ceases being in force to:
(a) the person; and
(b) if the Secretary is aware that the person has given an approved provider a copy of the determination - the approved provider.
(6) A determination made under subsection (1) is not a legislative instrument.