Aged Care (Transitional Provisions) Act 1997 (Cth)

Aged Care (Transitional Provisions) Act 1997 No. 223, 1997 Compilation No. 17 Compilation date: 21 February 2025 Includes amendments: Act No. 14, 2025 About this compilation This compilation This is a compilation of the Aged Care (Transitional Provisions) Act 1997 that shows the text of the law as amended and in force on 21 February 2025 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Chapter 1—Introduction Division 1—Preliminary matters 1‑1 Short title 1‑2 Commencement 1‑2A Act applies to continuing care recipients 1‑3 Identifying defined terms 1‑4 Tables of Divisions and Subdivisions do not form part of this Act Division 2—Objects 2‑1 The objects of this Act Division 3—Overview of this Act 3‑1 General 3‑2 Preliminary matters relating to subsidies 3‑3 Subsidies (Chapter 3) 3‑4 Responsibilities of approved providers 3‑5 Grants Division 4—Application of this Act 4‑1 Application of this Act 4‑2 Binding the Crown Chapter 3—Subsidies Division 40—Introduction 40‑1 What this Chapter is about Part 3.1—Residential care subsidy Division 41—Introduction 41‑1 What this Part is about 41‑2 Residential care subsidy also dealt with in Aged Care (Transitional Provisions) Principles 41‑3 Meaning of residential care Division 42—Who is eligible for residential care subsidy? 42‑1 Eligibility for residential care subsidy 42‑2 Leave from residential care services 42‑3 Working out periods of leave 42‑7 Exceeding the number of places for which there is an allocation 42‑8 Notice of refusal to pay residential care subsidy Division 43—How is residential care subsidy paid? 43‑1 Payment of residential care subsidy 43‑2 Meaning of payment period 43‑3 Advances 43‑4 Claims for residential care subsidy 43‑4A Variations of claims for residential care subsidy 43‑5 Deductions for fees 43‑6 Capital repayment deductions 43‑9 Recovery of overpayments Division 44—What is the amount of residential care subsidy? 44‑1 What this Division is about Subdivision 44‑A—Working out the amount of residential care subsidy 44‑2 Amount of residential care subsidy Subdivision 44‑B—The basic subsidy amount 44‑3 The basic subsidy amount Subdivision 44‑C—Primary supplements 44‑5 Primary supplements 44‑5A The accommodation supplement 44‑5B Meaning of supported resident 44‑5C Meaning of post‑2008 reform resident 44‑5D Meaning of pre‑2008 reform resident 44‑5E Meaning of pre‑entry leave 44‑6 The concessional resident supplement 44‑7 Meaning of concessional resident 44‑8 Meaning of assisted resident 44‑8AA Determinations for sections 44‑7 and 44‑8 44‑8AB Determination of value of person's assets 44‑9 Person taken not to be a supported resident, a concessional resident or an assisted resident if asset information not provided 44‑10 How to work out the value of a person's assets 44‑11 Definitions relating to supported residents, concessional residents and assisted residents 44‑12 The respite supplement 44‑13 The oxygen supplement 44‑14 The enteral feeding supplement 44‑15 Requests for further information 44‑16 Additional primary supplements Subdivision 44‑D—Reductions in subsidy 44‑17 Reductions in subsidy 44‑18 The extra service reduction 44‑20 The compensation payment reduction Subdivision 44‑E—The income test 44‑21 The income test 44‑22 Daily income tested reduction taken to be zero in some circumstances 44‑23 Effect on daily income tested reduction of failure to give requested information 44‑24 The care recipient's total assessable income 44‑26 The care recipient's total assessable income free area Subdivision 44‑F—Other supplements 44‑27 Other supplements 44‑28 The pensioner supplement 44‑30 The hardship supplement 44‑31 Determining cases of financial hardship Part 3.2—Home care subsidy Division 45—Introduction 45‑1 What this Part is about 45‑2 Home care subsidy also dealt with in Aged Care (Transitional Provisions) Principles 45‑3 Meaning of home care Division 46—Who is eligible for home care subsidy? 46‑1 Eligibility for home care subsidy 46‑2 Suspension of home care services 46‑4 Notice of refusal to pay home care subsidy Division 47—On what basis is home care subsidy paid? 47‑1 Payability of home care subsidy 47‑2 Meaning of payment period 47‑4 Claims for home care subsidy 47‑4A Variations of claims for home care subsidy 47‑5 Recovery of overpayments Division 48—What is the amount of home care subsidy? 48‑1 Amount of home care subsidy Part 3.3—Flexible care subsidy Division 49—Introduction 49‑1 What this Part is about 49‑2 Flexible care subsidy also dealt with in Aged Care (Transitional Provisions) Principles 49‑3 Meaning of flexible care Division 50—Who is eligible for flexible care subsidy? 50‑1 Eligibility for flexible care subsidy 50‑2 Kinds of care for which flexible care subsidy may be payable 50‑3 Exceeding the number of places for which there is an allocation 50‑4 Notice of refusal to pay flexible care subsidy Division 51—On what basis is flexible care subsidy paid? 51‑1 Payment of flexible care subsidy Division 52—What is the amount of flexible care subsidy? 52‑1 Amounts of flexible care subsidy Chapter 4—Responsibilities of approved providers Part 4.2—User rights Division 57—What are the responsibilities relating to accommodation bonds? 57‑1 What this Division is about Subdivision 57‑A—The basic rules 57‑2 Basic rules about accommodation bonds Subdivision 57‑C—Accommodation bond agreements 57‑9 Contents of accommodation bond agreements 57‑10 Accommodation bond agreements may be incorporated into other agreements 57‑11 Agreements cannot affect requirements of this Division Subdivision 57‑D—Amounts of accommodation bonds 57‑12 Maximum amount of accommodation bond 57‑13 Maximum amount of accommodation bond if care recipient moves between aged care services 57‑14 Accommodation bond in cases of financial hardship 57‑15 Revocation of determinations of financial hardship Subdivision 57‑E—Payment of accommodation bonds 57‑16 Period for payment of accommodation bond 57‑17 Payment of an accommodation bond by periodic payments Subdivision 57‑F—Rights of approved providers 57‑18 Approved provider may retain income derived 57‑19 Amounts to be deducted from accommodation bond balance 57‑20 Retention amounts Division 57A—What are the responsibilities relating to accommodation charges? 57A‑1 What this Division is about Subdivision 57A‑A—The basic rules 57A‑2 Basic rules about accommodation charges Subdivision 57A‑B—Accommodation charge agreements 57A‑3 Contents of accommodation charge agreements 57A‑4 Accommodation charge agreements may be incorporated into other agreements 57A‑5 Agreements cannot affect requirements of this Division Subdivision 57A‑C—Daily accrual amounts of accommodation charges 57A‑6 Maximum daily accrual amount of accommodation charge 57A‑7 Accommodation charge not to accrue after provision of care has ceased 57A‑8A Maximum amount of accommodation charge if care recipient moves between aged care services 57A‑9 Accommodation charge in cases of financial hardship 57A‑10 Revocation of determinations of financial hardship Subdivision 57A‑D—Payment of accommodation charges 57A‑11 Accommodation charge may be payable not more than one month in advance 57A‑12 Approved provider may charge interest Division 58—What are the responsibilities relating to resident fees? 58‑1 Responsibilities relating to resident fees 58‑2 Maximum daily amount of resident fees 58‑3 Standard resident contribution 58‑3A Meaning of pre‑September 2009 resident and post‑September 2009 resident 58‑3B Standard resident contribution—protected residents 58‑3C Standard resident contribution—certain pre‑2008 reform residents 58‑5 Extra service amount 58‑6 Maximum daily amount of resident fees for reserving a place Division 60—What are the responsibilities relating to home care fees? 60‑1 Responsibilities relating to home care fees 60‑2 Maximum daily amount of home care fees Chapter 6—Administration Division 84—Introduction 84‑1 What this Chapter is about Part 6.1—Reconsideration and review of decisions Division 85—Reconsideration and review of decisions 85‑1 Reviewable decisions 85‑2 Deadlines for making reviewable decisions 85‑3 Secretary must give reasons for reviewable decisions 85‑4 Secretary may reconsider reviewable decisions 85‑5 Reconsideration of reviewable decisions 85‑8 ART review of reviewable decisions Chapter 7—Miscellaneous Division 96—Miscellaneous 96‑1 Aged Care (Transitional Provisions) Principles 96‑2 Delegation of Secretary's powers and functions 96‑4 Care provided on behalf of an approved provider 96‑5 Care recipients etc. lacking capacity to enter agreements 96‑6 Applications etc. on behalf of care recipients 96‑7 Withdrawal of applications 96‑13 Regulations Schedule 1—Dictionary 1 Definitions Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act to deal with transitional matters in connection with the Aged Care (Living Longer Living Better) Act 2013, and for other purposes Chapter 1—Introduction Division 1—Preliminary matters 1‑1 Short title This Act may be cited as the Aged Care (Transitional Provisions) Act 1997. 1‑2 Commencement This Act commences on 1 July 2014. 1‑2A Act applies to continuing care recipients This Act applies only in relation to *continuing care recipients. 1‑3 Identifying defined terms (1) Many of the terms in this Act are defined in the Dictionary in Schedule 1. (2) Most defined terms are identified by an asterisk appearing at the start of the term: as in "*aged care service". The footnote that goes with the asterisk contains a signpost to the Dictionary. (3) An asterisk usually identifies the first occurrence of a term in a subsection, note or definition. Later occurrences of the term in the same subsection, note or definition are not asterisked. (4) Terms are not asterisked in headings, tables or diagrams. (5) The following basic terms used throughout the Act are not identified with an asterisk: Terms that are not identified Item This term: is defined in: 1 approved provider Schedule 1 2 care Schedule 1 3 home care section 45‑3 4 home care service Schedule 1 5 flexible care section 49‑3 6 flexible care service Schedule 1 7 provide section 96‑4 8 residential care section 41‑3 9 residential care service Schedule 1 10 Secretary Schedule 1 1‑4 Tables of Divisions and Subdivisions do not form part of this Act Tables of Divisions and tables of Subdivisions do not form part of this Act. Division 2—Objects 2‑1 The objects of this Act (1) The objects of this Act, in conjunction with the Aged Care Act 1997, are as follows: (a) to provide for funding of *aged care that takes account of: (i) the quality of the care; and (ii) the *type of care and level of care provided; and (iii) the need to ensure access to care that is affordable by, and appropriate to the needs of, people who require it; and (iv) appropriate outcomes for recipients of the care; and (v) accountability of the providers of the care for the funding and for the outcomes for recipients; (b) to promote a high quality of care and accommodation for the recipients of *aged care services that meets the needs of individuals; (c) to protect the health and well‑being of the recipients of aged care services; (d) to ensure that aged care services are targeted towards the people with the greatest needs for those services; (e) to facilitate access to aged care services by those who need them, regardless of race, culture, language, gender, economic circumstance or geographic location; (f) to provide respite for families, and others, who care for older people; (g) to encourage diverse, flexible and responsive aged care services that: (i) are appropriate to meet the needs of the recipients of those services and the carers of those recipients; and (ii) facilitate the independence of, and choice available to, those recipients and carers; (h) to help those recipients to enjoy the same rights as all other people in Australia; (i) to plan effectively for the delivery of aged care services that: (i) promote the targeting of services to areas of the greatest need and people with the greatest need; and (ii) avoid duplication of those services; and (iii) improve the integration of the planning and delivery of aged care services with the planning and delivery of related health and community services; (j) to promote ageing in place through the linking of care and support services to the places where older people prefer to live. (2) In construing the objects, due regard must be had to: (a) the limited resources available to support services and programs under this Act and the Aged Care Act 1997; and (b) the need to consider equity and merit in accessing those resources. Division 3—Overview of this Act 3‑1 General This Act, in conjunction with the Aged Care Act 1997, provides for the Commonwealth to give financial support: (a) through payment of subsidies for the provision of *aged care; and (b) through payment of grants for other matters connected with the provision of aged care. Subsidies are paid under Chapter 3 of this Act and Chapter 3 of the Aged Care Act 1997 (but Chapters 2 and 4 of the Aged Care Act 1997 and Chapter 4 of this Act are also relevant to subsidies), and grants are paid under Chapter 5 of the Aged Care Act 1997. 3‑2 Preliminary matters relating to subsidies Before the Commonwealth can pay subsidy to an approved provider of *aged care under Chapter 3 of this Act, a number of approvals and similar decisions may need to have been made under Chapter 2 of the Aged Care Act 1997. These may relate to: (b) the *aged care service in question (for example, for residential care services and flexible care services the requirement that *places have been allocated in respect of the service); or (c) the recipient of aged care (for example, the requirement that the recipient has been approved as a recipient of the type of aged care that is provided). Note: For the approval of providers of aged care, see Part 7A of the *Quality and Safety Commission Act. 3‑3 Subsidies (Chapter 3) A number of different kinds of subsidy can be paid under Chapter 3 of this Act. They are paid for *aged care that has been provided. Eligibility for a subsidy depends on: (a) particular approvals and similar decisions having been made under Chapter 2 of the Aged Care Act 1997; and (b) the circumstances in which the care is provided (for example, whether the care is provided in a residential care service that meets its *accreditation requirement). 3‑4 Responsibilities of approved providers Approved providers have certain responsibilities under Chapter 4 of this Act and Chapter 4 of the Aged Care Act 1997. These responsibilities relate to: (a) the quality of care they provide; and (b) user rights for the people to whom care is provided; and (c) accountability for the care that is provided, and the basic suitability of their *key personnel. Failure to meet these responsibilities can lead to the imposition of sanctions on an approved provider under Part 7B of the *Quality and Safety Commission Act, which may affect amounts of subsidy payable to the provider. 3‑5 Grants The Commonwealth makes grants under Chapter 5 of the Aged Care Act 1997 to contribute to costs associated with: (a) the establishment or enhancement of *aged care services (for example, *residential care grants); or (c) support services related to the provision of aged care (for example, *advocacy grants). The grants are (in most cases) payable under agreements with the recipients of the grants, and may be subject to conditions. Division 4—Application of this Act 4‑1 Application of this Act (1) This Act applies in all the States and Territories. (2) However, this Act does not apply in any external Territory, except Norfolk Island, the Territory of Christmas Island and the Territory of Cocos (Keeling) Islands. (3) Despite subsection (1), Part 3.1 applies in relation to the Territory of Christmas Island and the Territory of Cocos (Keeling) Islands as if those Territories were part of Western Australia and were not Territories. Note: This has the effect that references in Part 3.1 to a Territory do not apply to the Territory of Christmas Island or the Territory of Cocos (Keeling) Islands, and that references in that Part to a State will be relevant to Western Australia as if it included those Territories. (4) Despite subsection (1), Part 3.1 applies in relation to Norfolk Island as if Norfolk Island were part of New South Wales and were not a Territory. Note: This has the effect that references in Part 3.1 to a Territory do not apply to Norfolk Island, and that references in that Part to a State will be relevant to New South Wales as if it included Norfolk Island. 4‑2 Binding the Crown (1) This Act binds the Crown in each of its capacities. (2) This Act does not make the Crown liable to be prosecuted for an offence. Chapter 3—Subsidies Division 40—Introduction 40‑1 What this Chapter is about The Commonwealth pays subsidies to approved providers for *aged care that has been provided. These subsidies are: • *residential care subsidy (see Part 3.1); • *home care subsidy (see Part 3.2); • *flexible care subsidy (see Part 3.3). A number of approvals and other decisions may need to have been made under Chapter 2 of the Aged Care Act 1997 before a particular kind of payment can be made (see section 5‑2 of that Act). For example, an approved provider can only receive subsidy for providing residential care or flexible care in respect of which a *place has been allocated. Receipt of payments under this Chapter gives rise to certain responsibilities, that are dealt with in Chapter 4 of this Act and Chapter 4 of the Aged Care Act 1997. Part 3.1—Residential care subsidy Division 41—Introduction 41‑1 What this Part is about The *residential care subsidy is a payment by the Commonwealth to approved providers for providing residential care to care recipients. Table of Divisions 41 Introduction 42 Who is eligible for residential care subsidy? 43 How is residential care subsidy paid? 44 What is the amount of residential care subsidy? 41‑2 Residential care subsidy also dealt with in Aged Care (Transitional Provisions) Principles *Residential care subsidy is also dealt with in the Aged Care (Transitional Provisions) Principles. Provisions in this Part indicate when a particular matter is or may be dealt with in those Principles. Note: The Aged Care (Transitional Provisions) Principles are made by the Minister under section 96‑1. 41‑3 Meaning of residential care (1) Residential care is personal care or nursing care, or both personal care and nursing care, that: (a) is provided to a person in a residential facility in which the person is also provided with accommodation that includes: (i) appropriate staffing to meet the nursing and personal care needs of the person; and (ii) meals and cleaning services; and (iii) furnishings, furniture and equipment for the provision of that care and accommodation; and (b) meets any other requirements specified in the Aged Care (Transitional Provisions) Principles. (2) However, residential care does not include any of the following: (a) care provided to a person in the person's private home; (b) care provided in a hospital or in a psychiatric facility; (c) care provided in a facility that primarily provides care to people who are not frail and aged; (d) care that is specified in the Aged Care (Transitional Provisions) Principles not to be residential care. Division 42—Who is eligible for residential care subsidy? 42‑1 Eligibility for residential care subsidy (1) An approved provider is eligible for *residential care subsidy in respect of a day if the Secretary is satisfied that, during that day: (a) the approved provider holds an allocation of *places for residential care subsidy that is in force under Part 2.2 of the Aged Care Act 1997 (not being a *provisional allocation); and (b) the approved provider provides residential care to a care recipient in respect of whom an approval is in force under Part 2.3 of the Aged Care Act 1997 as a recipient of residential care; and (c) the residential care service through which the care is provided meets its *accreditation requirement (if any) applying at that time (see section 42‑4 of the Aged Care Act 1997). Note 1: A care recipient can be taken to be provided with residential care while he or she is on *leave from that care (see section 42‑2). Note 2: If the care recipient's approval under Part 2.3 of the Aged Care Act 1997 is not in force, subsidy will not be payable. (For example, the approval may have been given only for a limited period.) (2) However, the approved provider is not eligible in respect of residential care provided to the care recipient during that day if: (a) it is excluded because the approved provider exceeds the approved provider's allocation of *places for residential care subsidy (see section 42‑7); or (b) the approved provider stopped providing residential care to the person during that day; or (c) subject to subsection (3), another approved provider would, but for this paragraph, also be eligible for *residential care subsidy in respect of residential care provided to the same care recipient during that day. (3) Paragraph (2)(c) does not apply if the approved provider started providing residential care to the care recipient before the other approved provider. (5) Despite any other provision of this Act, an approved provider operating a residential care service is not eligible for *residential care subsidy for a care recipient in respect of a day if the care recipient is on *leave from that service on that day because of subsection 42‑3(3). 42‑2 Leave from residential care services (1) On each day during which a care recipient is on *leave under this section from a residential care service, the care recipient is taken, for the purposes of this Part (other than section 42‑3) and for the purposes of section 63Q of the *Quality and Safety Commission Act, to be provided with residential care by the approved provider operating the residential care service. (2) A care recipient is on *leave under this section from a residential care service on each day of any period during which the care recipient attends a hospital for the purpose of receiving hospital treatment, so long as the day is on or after the day on which the care recipient *enters the residential care service. Note: Attending a hospital for a period of extended hospital leave may result in the Minister determining a lower basic subsidy amount for the recipient for days occurring during that period, which will affect the amount of subsidy that is payable (see section 44‑3). (3) A care recipient is on *leave under this section from a residential care service on a day if: (a) during the whole of that day, the care recipient is absent from the residential care service; and (b) either: (i) the care recipient does not, during that day, attend a hospital for the purpose of receiving hospital treatment; or (ii) the care recipient does, during that day, attend a hospital for that purpose and the day is before the day on which the care recipient *enters the residential care service; and (ba) the care recipient is not on leave under subsection (3B) on that day; and (c) the number of days on which the care recipient has previously been on leave under this subsection, during the current financial year, is less than 52. Note: If a care recipient is taken not to have been provided with care because the maximum number of days has been exceeded, subsidy will not be payable in respect of those days. However, the care recipient may agree to pay a fee to the approved provider to reserve the care recipient's *place in the service. The maximum amount in such a case is set by section 58‑6. (3AA) For the purposes of paragraph (3)(c), disregard days on which the care recipient is on *leave from the residential care service because of subsection 42‑3(3). (3A) A care recipient is on *leave under this section from a residential care service on a day if: (a) *flexible care subsidy is payable in respect of the care recipient and the day; and (b) the requirements specified in the Aged Care (Transitional Provisions) Principles for the purposes of this paragraph are met. Note: If a care recipient is on leave for at least 30 days continuously under subsections (2) and (3A), this may result in the Minister determining a lower basic subsidy amount for the recipient for days occurring during that period, which will affect the amount of residential care subsidy that is payable (see section 44‑3). (3B) A care recipient is on *leave under this section from a residential care service (the affected service) on a day if: (a) during the whole of that day, the care recipient is absent from the affected service; and (b) either: (i) the care recipient does not, during that day, attend a hospital for the purpose of receiving hospital treatment; or (ii) the care recipient does, during that day, attend a hospital for that purpose and the day is before the day on which the care recipient *enters the affected service; and (c) the Minister determines under subsection 42‑2A(1) of the Aged Care Act 1997 that there is a situation of emergency for that day for the affected service or a class of residential care services that includes the affected service. (4) Despite subsections (2), (3), (3A) and (3B), a care recipient cannot be on *leave under this section from a residential care service during any period during which the residential care in question would have been *respite care. 42‑3 Working out periods of leave (1) In working out the days on which a care recipient is on *leave under section 42‑2: (a) include the day on which the period commenced; and (b) do not include the day on which the approved provider recommenced, or commenced, providing residential care to the care recipient. Note: Absences that do not include an overnight absence from a residential care service are not counted as *leave because of paragraph (b). (2) Subject to subsection (3), a care recipient cannot be on *leave under section 42‑2 from a residential care service before he or she *enters the service. (3) A care recipient may be on leave under section 42‑2 on the days during the period starting on the later of: (a) the day on which he or she was notified that there was a vacancy in the residential care service in question; or (aa) the day on which he or she accepted a place in the residential care service; or (b) the day that is 7 days, or such other period as is specified in the Aged Care (Transitional Provisions) Principles, before the day on which the person *enters the residential care service; and ending at the end of the day before the day the person enters the residential care service. 42‑7 Exceeding the number of places for which there is an allocation (1) For the purposes of a person's eligibility for *residential care subsidy, residential care provided to a particular care recipient on a particular day is excluded if: (a) the number of care recipients provided with residential care by the approved provider during that day exceeds the number of *places included in the approved provider's allocation of places for residential care subsidy; and (b) the Secretary decides, in accordance with subsection (2), that the residential care provided to that particular care recipient on that day is to be excluded. (2) In deciding under paragraph (1)(b) which residential care is to be excluded, the Secretary must: (a) make the number of exclusions necessary to ensure that the number of *places for which *residential care subsidy will be payable does not exceed the number of places included in the approved provider's allocation of places for residential care subsidy; and (b) exclude the residential care in the reverse order in which the care recipients *entered the residential care service for the provision of residential care. 42‑8 Notice of refusal to pay residential care subsidy (1) If: (a) an approved provider has claimed *residential care subsidy in respect of a person; and (b) the approved provider is not eligible for residential care subsidy in respect of that person; the Secretary must notify the approved provider, in writing, accordingly. (2) A notice given under subsection (1) is not a legislative instrument. Division 43—How is residential care subsidy paid? 43‑1 Payment of residential care subsidy (1) Residential care subsidy is payable by the Commonwealth to an approved provider in respect of each *payment period (see section 43‑2) during which the approved provider is eligible under section 42‑1. However, it is not payable in respect of any days during that period on which the approved provider is not eligible. (2) Residential care subsidy is separately payable by the Commonwealth in respect of each residential care service through which the approved provider provides residential care. (3) The Secretary may, in accordance with the Aged Care (Transitional Provisions) Principles, deduct from the amount of residential care subsidy otherwise payable in respect of a *payment period such of the following amounts as apply to the residential care service in question: (a) deductions for fees (see section 43‑5); (b) *capital repayment deductions (see section 43‑6). 43‑2 Meaning of payment period A payment period is: (a) a calendar month; or (b) such other period as is set out in the Aged Care (Transitional Provisions) Principles. 43‑3 Advances (1) Subject to subsection 43‑4(2), *residential care subsidy is payable by the Commonwealth in advance, in respect of a *payment period, at such times as the Secretary thinks fit. (2) The Secretary must work out the amount of an advance to be paid to an approved provider in respect of the first *payment period or the second payment period for a residential care service by estimating the amount of *residential care subsidy that will be payable for the days in that period. (3) The Secretary must work out the amount of an advance to be paid to an approved provider in respect of subsequent *payment periods for a residential care service by: (a) estimating the amount of *residential care subsidy that will be payable (taking into account any deductions under subsection 43‑1(3)) for the days in the period; and (b) increasing or reducing that amount to make any adjustments that the Secretary reasonably believes are necessary to take account of likely underpayments or overpayments in respect of advances previously paid under this section. (4) The amounts of advances must be worked out in accordan