Aged Care

07 November 2008

‘Donations’ to be refunded

Aged Care Amendment (2008 Measures No. 2) Bill 2008

The practice of some aged care providers to accept a ‘donation’ which in effect gives a resident entry into their high care facility is addressed in the Rudd Government’s Bill to amend the Aged Care Act 1997 (Cth) (the Act).

The proposed amendments to the Act seek to regulate payments made outside existing bond regulation. The Government argues that this is to ensure that residents are protected when they enter into these informal arrangements. The amendment will give the Department of Health & Ageing authority to impose conditions before it will grant allocations, including:

• a requirement to refund such money to the care recipient
• the forgiveness of any obligation in relation to the sum, and
• the conditions of any accommodation bond agreement entered into as a consequence of the refund.

Where such conditions are imposed, the resident and aged care provider will have the same rights, duties, and obligation as if the sum were an accommodation bond.

For further assistance or enquiries please contact Tim Longwill on 07 3233 8974.