Document ID: chunk:federal_register_of_legislation:C2025C00143:section:10:p29
Version: federal_register_of_legislation:C2025C00143
Segment Type: section
Provision Reference: s 10 (pt 29/50)
Character Range: 81566–84365

did not apply.
 (4) However, if:
 (a) the compensation payment reduction arises from a judgment or settlement that fixes the amount of compensation on the basis that liability should be apportioned between the care recipient and the compensation payer; and
 (b) as a result, the amount of compensation is less than it would have been if liability had not been so apportioned; and
 (c) the compensation is not paid in a lump sum;
the amount of the compensation payment reduction under subsection (3) is reduced by the proportion corresponding to the proportion of liability that is apportioned to the care recipient by the judgment or settlement.
 (5) If a care recipient is entitled to compensation under a judgment or settlement that does not take into account the future costs of providing residential care to the care recipient, the Secretary may, in accordance with the Aged Care (Transitional Provisions) Principles, determine:
 (a) that, for the purposes of this section, the judgment or settlement is to be treated as having taken into account the cost of providing that residential care; and
 (b) the part of the compensation that, for the purposes of this section, is to be treated as relating to the future costs of providing residential care.
Note: Determinations are reviewable under Part 6.1.
 (6) If:
 (a) a care recipient is entitled to compensation under a settlement; and
 (b) the settlement takes into account the future costs of providing residential care to the recipient; and
 (c) the Secretary is satisfied that the settlement does not adequately take into account the future costs of providing residential care to the care recipient;
the Secretary may, in accordance with the Aged Care (Transitional Provisions) Principles, determine the part of the compensation that, for the purposes of this section, is to be treated as relating to the future costs of providing residential care.
Note: Determinations are reviewable under Part 6.1.
 (7) A determination under subsection (5) or (6) must be in writing and notice of it must be given to the care recipient.
 (7A) A determination under subsection (5) or (6) is not a legislative instrument.
 (8) A reference in this section to the costs of providing residential care does not include a reference to an amount that is or may be payable as an *accommodation bond, except to the extent provided in the Aged Care (Transitional Provisions) Principles.
 (9) In this section, the following terms have the same meanings as in the Health and Other Services (Compensation) Act 1995:

compensation
compensation payer
judgment
reimbursement arrangement
settlement.

Subdivision 44‑E—The income test

44‑21  The income test
 (1) The income test for the care recipient under step 4 of the residential care subsidy calculator in section 44‑2