Document ID: chunk:federal_register_of_legislation:C2020C00082:section:6:p4
Version: federal_register_of_legislation:C2020C00082
Segment Type: section
Provision Reference: s 6 (pt 4/4)
Character Range: 13498–15752

Provisions) Principles made under section 96‑1 of the Aged Care (Transitional Provisions) Act 1997; or
 (iii) a formal agreement applying in respect of the balance; and
 (c) in relation to an unregulated lump sum—that time is later than the earlier of the following:
 (i) the start of the first day on which the person (the unregulated lump sum holder) to whom the amount was paid is obliged, under the agreement under which it was paid, to refund the amount or part of the amount;
 (ii) the end of a period of 14 days beginning immediately after the day on which the care recipient in relation to whose entry to a residential care service or flexible care service the amount was paid ceased to be provided with care by the unregulated lump sum holder through that service.

What is an unregulated lump sum?
 (3) An unregulated lump sum is an amount of money paid to a person (the unregulated lump sum holder) in the following circumstances:
 (a) the amount is paid to the unregulated lump sum holder by a care recipient under a written agreement for the care recipient's entry to:
 (i) a residential care service through which residential care other than respite care is, or is to be, provided by the unregulated lump sum holder; or
 (ii) a flexible care service through which flexible care is, or is to be, provided by the unregulated lump sum holder;
 (b) the amount does not accrue daily;
 (c) under the agreement, the amount, or part of the amount, must be refunded to the care recipient if the unregulated lump sum holder ceases to provide residential care or flexible care (as the case requires) to the care recipient;
 (d) the unregulated lump sum holder is an approved provider immediately before 1 January 2009;
 (e) the amount was paid to the unregulated lump sum holder before 1 January 2009 and before the unregulated lump sum holder began to be an approved provider;
 (f) the amount is not an entry contribution;
 (g) the care recipient did not cease to be provided with residential care through the residential care service, or flexible care through the flexible care service (as the case requires), after the amount was paid but before the unregulated lump sum holder began to be an approved provider.

Part 2—Insolvency event declaration