Commonwealth: 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 Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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 accordance with any requirements set out in the Aged Care (Transitional Provisions) Principles. (5) The Secretary may, in deciding whether to reduce the amount of an advance under paragraph (3)(b), take into account the likelihood of the Commonwealth's right to recover a particular overpayment being waived under section 95‑6 of the Aged Care Act 1997. Note: Subsection (5) allows the Secretary to take account of waivers in respect of overpayments caused, for example, by some cases of incorrect determinations of the *ordinary incomes of care recipients. 43‑4 Claims for residential care subsidy (1) For the purpose of obtaining payment of *residential care subsidy in respect of a residential care service through which an approved provider provides residential care, the approved provider must, as soon as practicable after the end of each *payment period, give to the Secretary: (a) a claim, in the form approved by the Secretary, for residential care subsidy that is payable in respect of the residential care service for that payment period; and (b) any information relating to the claim that is stated in the form to be required, or that the Secretary requests; and (c) copies of any documents relating to the claim, or to the payment of *residential care subsidy, that are stated in the form to be required, or that the Secretary requests. (2) An advance of *residential care subsidy is not payable in respect of a *payment period for the residential care service if the approved provider has not given to the Secretary under subsection (1) a claim relating to the second last preceding payment period for the service. Example: An advance of subsidy is not payable for March if the Secretary has not been given a claim for January of the same year (assuming the *payment periods are all calendar months—see section 43‑2). (3) Subsection (2) does not apply to the first *payment period or the second payment period for a residential care service. (4) If all the places in a residential care service are transferred from one person to another, subsection (2) does not apply to the first 2 *payment periods for the residential care service that occur after the transfer took effect. (5) If: (a) apart from this subsection, the operation of paragraph (1)(c) would result in the acquisition of property from a person otherwise than on just terms; and (b) the acquisition would be invalid because of paragraph 51(xxxi) of the Constitution; the Commonwealth is liable to pay compensation of a reasonable amount to the person in respect of the acquisition. 43‑4A Variations of claims for residential care subsidy (1) An approved provider may vary the claim made in respect of a *payment period within: (a) 2 years after the end of the payment period; or (b) such longer period as is determined in respect of the claim by the Secretary. (2) In determining a longer period for the purposes of paragraph (1)(b), the Secretary must be satisfied that a variation is required: (a) due to an administrative error made by the Commonwealth or an agent of the Commonwealth; or (b) because the Commonwealth or an agent of the Commonwealth considers that the circumstances of a care recipient are different from those on the basis of which subsidy was claimed. Note: Determinations of periods under paragraph (1)(b) are reviewable under Part 6.1. (3) A determination made under paragraph (1)(b) is not a legislative instrument. 43‑5 Deductions for fees The Secretary may, on behalf of the Commonwealth, enter into an agreement with an approved provider, under which: (a) amounts equal to the fees payable by the approved provider for applications made under this Act are to be deducted from amounts of *residential care subsidy otherwise payable to the approved provider in respect of the residential care service specified in the agreement; and (b) so far as amounts are so deducted, the approved provider ceases to be liable to the Commonwealth for payment of the fees. 43‑6 Capital repayment deductions (1) Capital repayment deductions apply in respect of a residential care service if: (a) the approved provider is granted *extra service status under Division 32 of the Aged Care Act 1997 in respect of the service, or in respect of a *distinct part of the service; and (b) the Commonwealth has previously made capital payments in respect of the service, whether or not the payments were made to that approved provider; and (c) the payments have not been repaid to the Commonwealth. The capital repayment deductions are applied in accordance with an agreement entered into under this section. (2) The Secretary may, on behalf of the Commonwealth, enter into an agreement with the approved provider, under which: (a) amounts equal to the capital payments made in respect of the service are to be deducted from amounts of *residential care subsidy otherwise payable to the approved provider in respect of the service; and (b) so far as amounts are so deducted, the approved provider ceases to be liable to the Commonwealth for repayment in respect of the capital payments. Note: Entering into such an agreement may be a condition of the granting of *extra service status (see paragraph 32‑8(5)(b) of the Aged Care Act 1997). (3) However, only a proportion of the amounts equal to the capital payments made in respect of the service are to be deducted under the agreement if: (a) *extra service status is granted only in respect of a *distinct part of the service; or (b) some or all of the capital payments were made more than 5 years before the first of the deductions is to be made; or (c) the circumstances (if any) specified in the Aged Care (Transitional Provisions) Principles apply. The proportion is to be worked out in accordance with the Aged Care (Transitional Provisions) Principles. (4) The agreement must provide for the deductions to be completed within 3 years after the making of the first deduction. (5) In this section: capital payment means: (a) a *residential care grant; or (b) a payment of a kind specified in the Aged Care (Transitional Provisions) Principles. 43‑9 Recovery of overpayments This Division does not affect the Commonwealth's right to recover overpayments under Part 6.5 of the Aged Care Act 1997. Division 44—What is the amount of residential care subsidy? 44‑1 What this Division is about Amounts of *residential care subsidy payable under Division 43 to an approved provider are worked out under this Division in respect of each residential care service. The amount in respect of a residential care service is determined by adding together amounts worked out, using the residential care subsidy calculator in section 44‑2, in respect of individual care recipients in the service. Table of Subdivisions 44‑A Working out the amount of residential care subsidy 44‑B The basic subsidy amount 44‑C Primary supplements 44‑D Reductions in subsidy 44‑E The income test 44‑F Other supplements Subdivision 44‑A—Working out the amount of residential care subsidy 44‑2 Amount of residential care subsidy (1) The amount of *residential care subsidy payable to an approved provider for a residential care service in respect of a *payment period is the amount worked out by adding together the amounts of residential care subsidy for each care recipient: (a) to whom the approved provider provided residential care through the residential care service during the period; and (b) in respect of whom the approved provider was eligible for residential care subsidy during the period. (2) This is how to work out the amount of *residential care subsidy for a care recipient in respect of the *payment period. Residential care subsidy calculator Step 1. Work out the basic subsidy amount using Subdivision 44‑B. Step 2. Add to this amount the amounts of any primary supplements worked out using Subdivision 44‑C. Step 3. Subtract the amounts of any reductions in subsidy worked out using Subdivision 44‑D. Step 4. Subtract any further reduction worked out by applying the income test under Subdivision 44‑E. Step 5. Add the amounts of any other supplements worked out using Subdivision 44‑F. The result is the amount of residential care subsidy for the care recipient in respect of the payment period. Subdivision 44‑B—The basic subsidy amount 44‑3 The basic subsidy amount (1) The basic subsidy amount for the care recipient in respect of the *payment period is the sum of all the basic subsidy amounts for the days during the period on which the care recipient was provided with residential care through the residential care service in question. (2) The basic subsidy amount for a care recipient for a day is the amount: (a) determined by the Minister by legislative instrument; or (b) worked out in accordance with a method determined by the Minister by legislative instrument. (3) The Minister may determine different amounts (including nil amounts) based on any one or more of the following: (a) the kind of residential care service through which residential care is provided to a care recipient; (aa) whether a care recipient being provided with residential care has been classified under Part 2.4A of the Aged Care Act 1997; (ab) the *classification levels for care recipients who have been classified under that Part; (b) whether the residential care being provided is *respite care; (c) the times at which a care recipient *entered a residential care service; (ca) whether a care recipient is on *extended hospital leave; (e) any other matters specified in the Aged Care (Transitional Provisions) Principles; (f) any other matters determined by the Minister. (4) The Minister may make provision for, or in relation to, a matter by conferring a power on the Secretary. Subdivision 44‑C—Primary supplements 44‑5 Primary supplements The primary supplements for the care recipient under step 2 of the residential care subsidy calculator in section 44‑2 are such of the following supplements as apply to the care recipient in respect of the *payment period: (aaa) the accommodation supplement (see section 44‑5A); (a) the concessional resident supplement (see section 44‑6); (b) the respite supplement (see section 44‑12); (c) the oxygen supplement (see section 44‑13); (d) the enteral feeding supplement (see section 44‑14); (e) any additional primary supplements (see section 44‑16). Note: Most of the supplements under this Subdivision are taken into account in applying the income test under Subdivision 44‑E. (The supplements under Subdivision 44‑F are not taken into account in applying the income test.) 44‑5A The accommodation supplement (1) The accommodation supplement for the care recipient in respect of the *payment period is the sum of all the accommodation supplements for the days during the period on which: (a) the care recipient was provided with residential care (other than *respite care) through the residential care service in question; and (b) the care recipient was eligible for an accommodation supplement. (2) The care recipient is eligible for an accommodation supplement on a particular day if, on that day: (b) the care recipient is a *supported resident; and (d) the residential care provided to the care recipient is not provided on an extra service basis for the purposes of Division 36 of the Aged Care Act 1997. (3) The accommodation supplement for a particular day is the amount: (a) determined by the Minister by legislative instrument; or (b) worked out in accordance with a method determined by the Minister by legislative instrument. (4) The Minister may determine different amounts (including nil amounts) or methods based on any one or more of the following: (a) the value of assets held by a care recipient; (b) any other matter specified in the Aged Care (Transitional Provisions) Principles. 44‑5B Meaning of supported resident (1) A person is a supported resident on a particular day if: (a) on that day, the person is being provided with residential care (other than *respite care) through a residential care service; and (b) on that day, the person is a *post‑2008 reform resident; and (c) the amount determined by the Secretary by legislative instrument in relation to that day for the purposes of this paragraph is equal to or more than the value of the person's assets at the time at which the person *entered the residential care service or such other time specified in the Aged Care (Transitional Provisions) Principles. Note: Some *supported residents may be required to pay an *accommodation bond or an *accommodation charge—see sections 57‑12 and 57A‑6. If there is financial hardship (2) A person is also a supported resident if: (a) a determination is in force under section 57‑14 or 57A‑9 in respect of the person; and (b) the person is a *post‑2008 reform resident. 44‑5C Meaning of post‑2008 reform resident A person is a post‑2008 reform resident if the person is being provided with residential care through a residential care service and the person is not a *pre‑2008 reform resident. 44‑5D Meaning of pre‑2008 reform resident (1) A person is a pre‑2008 reform resident if: (a) the person is being provided with residential care through a residential care service; and (b) either: (i) the person *entered a residential care service before 20 March 2008; or (ii) the person was on *pre‑entry leave from a residential care service immediately before 20 March 2008 and the person entered the residential care service on or after 20 March 2008 at the end of that pre‑entry leave; and (c) the person has not had a break in residential care of more than 28 days between: (i) the last residential care service through which residential care was provided, or taken to be provided, to the person before 20 March 2008 and the next residential care service through which residential care is provided, or taken to be provided, to the person; and (ii) any residential care service through which residential care is provided, or taken to be provided, to the person on or after 20 March 2008 and the next residential care service through which residential care is provided, or taken to be provided, to the person. (2) The period: (a) beginning on the day on which a person ceases to be provided with residential care through a residential care service (other than because the person is on *leave from the residential care service); and (b) ending on the day on which the person *enters, or begins *pre‑entry leave, with the next residential care service through which residential care is provided, or taken to be provided, to the person; is a break in residential care for the person. (3) For the purposes of subsections (1) and (2), a person is not provided, or taken to be provided, with residential care during any period during which the person is being provided with *respite care. 44‑5E Meaning of pre‑entry leave A care recipient is on pre‑entry leave from a residential care service on a particular day if, on that day, the care recipient is taken to be provided with residential care by the residential care service because the care recipient is on *leave under section 42‑2 because of subsection 42‑3(3). 44‑6 The concessional resident supplement (1) The concessional resident supplement for the care recipient in respect of the *payment period is the sum of all the concessional resident supplements for the days during the period on which: (a) the care recipient was provided with residential care (other than *respite care) through the residential care service in question; and (b) the care recipient was eligible for a *concessional resident supplement. (2) The care recipient is eligible for a concessional resident supplement on a particular day if, on that day: (b) the care recipient is a *concessional resident or an *assisted resident; and (d) the residential care provided to the care recipient is not provided on an extra service basis for the purposes of Division 36 of the Aged Care Act 1997. (3) The care recipient is also eligible for a concessional resident supplement on a particular day if the care recipient was eligible for either of the following on the day before the transition day (within the meaning of the Aged Care Act 1997): (a) a charge exempt resident supplement under repealed section 44‑8A; (b) a transitional supplement under repealed section 33 of the Aged Care (Transitional Provisions) Principles. (4) The concessional resident supplement for a particular day is the amount determined by the Minister by legislative instrument. (5) The Minister may determine different amounts (including nil amounts) based on any one or more of the following: (a) the amount of an *accommodation bond paid by, or an *accommodation charge charged to, a care recipient for *entry to a residential care service; (b) the value of assets held by a care recipient; (c) whether the residential care with which a care recipient is provided is *respite care; (d) any other matters specified in the Aged Care (Transitional Provisions) Principles. 44‑7 Meaning of concessional resident If the applicable time is before 1 July 2005 (1) A person is a concessional resident if the person is being provided with residential care (other than *respite care) through a residential care service, the applicable time under subsection (2) is before 1 July 2005 and, at the applicable time: (a) the person was receiving an *income support payment; and (b) the person had not been a *homeowner for 2 years or more, or owned a home that was occupied by: (i) the *partner or a *dependent child of the person; or (ii) a carer of the person who had occupied the home for the past 2 years and, at the entry time, was eligible to receive an income support payment; or (iii) a *close relation of the person who had occupied the home for the past 5 years and, at the entry time, was eligible to receive an income support payment; and (c) the value of the person's assets was less than: (i) the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 2.5 times the *basic age pension amount at the time in question; or (ii) such other amount as is specified in, or worked out in accordance with, the Aged Care (Transitional Provisions) Principles. Note: A *concessional resident cannot be required to pay an *accommodation bond or an *accommodation charge—see sections 57‑12 and 57A‑6. If the applicable time is on or after 1 July 2005 (1A) A person is also a concessional resident if: (a) the person is being provided with residential care (other than *respite care) through a residential care service; and (b) the applicable time under subsection (2) is on or after 1 July 2005; and (c) the person is a *pre‑2008 reform resident; and (d) there is in force a determination covered by subsection (1B) or (1C). (1B) Subject to subsection (1D), this subsection covers a determination, made under section 44‑8AA before the person *entered the residential care service, that the conditions in paragraphs (1)(a), (b) and (c) would have been met for the person at the time specified in the determination if the references in subparagraphs (1)(b)(ii) and (iii) to the entry time had been references to the time specified in the determination. (1C) Subject to subsection (1E), this subsection covers a determination, made under section 44‑8AA when or after the person *entered the residential care service, that the conditions in paragraphs (1)(a), (b) and (c) were met at the applicable time under subsection (2). (1D) If: (a) a determination covered by subsection (1B) is made in relation to a person; and (b) the time specified in the determination is on or after 20 September 2009; subsection (1B) has effect as if the reference to paragraph (1)(c) were a reference to that paragraph modified by omitting "2.5" from subparagraph (i) and substituting "2.25". (1E) If: (a) a determination covered by subsection (1C) is made in relation to a person; and (b) the applicable time under subsection (2) is on or after 20 September 2009; subsection (1C) has effect as if the reference to paragraph (1)(c) were a reference to that paragraph modified by omitting "2.5" from subparagraph (i) and substituting "2.25". What is the applicable time? (2) The applicable time is: (a) if: (i) the person had, within 28 days prior to *entry to the residential care service, been provided with residential care through another residential care service; and (ii) the person had paid an *accommodation bond for entry to that other service; the time that was, under this subsection, the applicable time in respect of that other service; or (b) in any other case—the time at which the person entered the residential care service. If there is financial hardship (whatever the applicable time) (3) A person is also a concessional resident if: (a) a determination is in force under paragraph 57‑14(1)(a) or 57A‑9(1)(a) in respect of the person; and (b) the person is a *pre‑2008 reform resident. 44‑8 Meaning of assisted resident If the applicable time is before 1 July 2005 (1) A person is an assisted resident if the person is being provided with residential care (other than *respite care) through a residential care service, the applicable time under subsection (2) is before 1 July 2005 and, at the applicable time: (a) the person was receiving an *income support payment; and (b) the person had not been a *homeowner for 2 years or more, or owned a home that was occupied by: (i) the *partner or a *dependent child of the person; or (ii) a carer of the person who had occupied the home for the past 2 years and, at the entry time, was eligible to receive an income support payment; or (iii) a *close relation of the person who had occupied the home for the past 5 years and, at the entry time, was eligible to receive an income support payment; and (c) the value of the person's assets was less than: (i) the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 4 times the *basic age pension amount at the time in question; or (ii) such other amount as is specified in, or worked out in accordance with, the Aged Care (Transitional Provisions) Principles; but more than: (iii) the amount obtained by rounding to the nearest $500.00 (rounding $250.00 upwards) an amount equal to 2.5 times the *basic age pension amount at the time in question; or (iv) such other amount as is specified in, or worked out in accordance with, the Aged Care (Transitional Provisions) Principles. Note: An *assisted resident may be required to pay an *accommodation bond or an *accommodation charge. If the applicable time is on or after 1 July 2005 (1A) A person is also an assisted resident if: (a) the person is being provided with residential care (other than *respite care) through a residential care service; and (b) the applicable time under subsection (2) is on or after 1 July 2005; and (c) the person is a *pre‑2008 reform resident; and (d) there is in force a determination covered by subsection (1B) or (1C). If there is financial hardship (whatever the applicable time) (1AA) A person is also an assisted resident if: (a) a determination is in force under paragraph 57‑14(1)(b) or 57A‑9(1)(b) in respect of the person; and (b) the person is a *pre‑2008 reform resident. (1B) Subject to subsection (1D), this subsection covers a determination, made under section 44‑8AA before the person *entered the residential care service, that the conditions in paragraphs (1)(a), (b) and (c) would have been met for the person at the time specified in the determination if the references in subparagraphs (1)(b)(ii) and (iii) to the entry time had been references to the time specified in the determination. (1C) Subject to subsection (1E), this subsection covers a determination, made under section 44‑8AA when or after the person *entered the residential care service, that the conditions in paragraphs (1)(a), (b) and (c) were met at the applicable time under subsection (2). (1D) If: (a) a determination covered by subsection (1B) is made in relation to a person; and (b) the time specified in the determination is on or after 20 September 2009; subsection (1B) has effect as if the reference to paragraph (1)(c) were a reference to that paragraph modified by: (c) omitting "4" from subparagraph (i) and substituting "3.61"; and (d) omitting "2.5" from subparagraph (iii) and substituting "2.25". (1E) If: (a) a determination covered by subsection (1C) is made in relation to a person; and (b) the applicable time under subsection (2) is on or after 20 September 2009; subsection (1C) has effect as if the reference to paragraph (1)(c) were a reference to that paragraph modified by: (c) omitting "4" from subparagraph (i) and substituting "3.61"; and (d) omitting "2.5" from subparagraph (iii) and substituting "2.25". What is the applicable time? (2) The applicable time is: (a) if: (i) the person had, within 28 days prior to *entry to the residential care service, been provided with residential care through another residential care service; and (ii) the person had paid an *accommodation bond for entry to that other service; the time that was, under this subsection, the applicable time in respect of that other service; or (b) in any other case—the time at which the person entered the residential care service. 44‑8AA Determinations for sections 44‑7 and 44‑8 Making determinations (1) The Secretary may make a determination (the resident status determination) described in section 44‑7 or 44‑8 if: (a) the person mentioned in that section has applied, in a form approved by the Secretary, for the resident status determination; and (b) the Secretary has made a determination (the asset value determination) under section 44‑8AB of the value of the person's assets at the time that is specified in the resident status determination; and (c) the Secretary is satisfied of the matters relating to the person that are to be set out in the resident status determination. Note: The time specified in a determination covered by subsection 44‑7(1C) or 44‑8(1C) is the applicable time under subsection 44‑7(2) or 44‑8(2). Giving notice of decision on resident status determination (2) Within 14 days after deciding whether or not to grant the application, the Secretary must notify the person in writing of: (a) the decision; and (b) if the Secretary made the resident status determination—the content of the determination. When the resident status determination comes into force (3) The resident status determination comes into force on the day it is made or an earlier day stated in the determination to be the day on which the determination comes into force. When the resident status determination ceases to be in force (5) The resident status determination ceases to be in force when the asset value determination ceases to be in force, if: (a) the person was not being provided with residential care (other than *respite care) through a residential care service when the resident status determination came into force; and (b) the person has not been provided with such care between: (i) the time the resident status determination came into force; and (ii) the time the asset value determination ceases to be in force. Note: Subsections 44‑8AB(3) and (4) explain how to work out when the asset value determination ceases to be in force. (6) The Secretary may by written instrument revoke the resident status determination if he or she ceases to be satisfied of any of the matters relating to the person that are set out in the determination. The determination ceases to be in force on a day specified in the instrument (which may be before the instrument is made). (7) Within 14 days after revoking the resident status determination, the Secretary must give written notice of the revocation and the day on which the determination ceases being in force to: (a) the person; and (b) each approved provider (if any) who has provided the person with residential care (other than *respite care) through a residential care service since the determination ceased to be in force. (8) A resident status determination made under subsection (1) is not a legislative instrument. 44‑8AB 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 44‑10, 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: The determination may affect the maximum amount of accommodation bond or charge for the person under section 57‑12 or 57A‑6, as well as whether the person is a *supported resident under section 44‑5B, a concessional resident under section 44‑7 or an assisted resident under section 44‑8. 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). (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. 44‑9 Person taken not to be a supported resident, a concessional resident or an assisted resident if asset information not provided If: (a) a care recipient is provided with residential care through a residential care service at a particular time; and (b) at that time, the care recipient has not given to the approved provider conducting the residential care service sufficient information about the care recipient's assets for the approved provider to determine whether the care recipient is a *supported resident, an *assisted resident or a *concessional resident; the person is taken, for the purposes of this Act, not to be a supported resident under subsection 44‑5B(1), a concessional resident under subsection 44‑7(1) or an assisted resident under subsection 44‑8(1) at that time. Note: This section does not affect whether a person is a concessional resident under subsection 44‑7(1A) or an assisted resident under subsection 44‑8(1A). 44‑10 How to work out the value of a person's assets (1) Subject to this section, the value of a person's assets for the purposes of section 44‑5A, 44‑5B, 44‑7, 44‑8 or 44‑8AB is to be worked out in accordance with the Aged Care (Transitional Provisions) Principles. (1A) If a person who is receiving a *service pension, an *income support supplement or a *veteran payment 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. (1B) If a person who is not receiving a *service pension, an *income support supplem