Document ID: chunk:federal_register_of_legislation:C2024A00104:section:242
Version: federal_register_of_legislation:C2024A00104
Segment Type: section
Provision Reference: s 242
Character Range: 403015–405300

242  Provider‑based reduction amount
 (1) The provider‑based subsidy reduction for a registered provider for the classification types ongoing for the service group residential care for an individual for a day is worked out as follows:

      Method statement
           Step 1: Work out the daily means tested amount for the individual for the day (see section 319).
           Step 2: Subtract the sum of the following from the daily means tested amount:

                (a) the maximum accommodation supplement amount (see subsection 235(3));
                (b) the maximum hotelling supplement amount (see subsection 235(4)).

           Step 3. If the Step 2 amount does not exceed zero, the provider‑based subsidy reduction is zero.
           Step 4. If the Step 2 amount exceeds zero, the provider‑based subsidy reduction is the lesser of the following:

                (a) the Step 2 amount;
                (b) the maximum non‑clinical care contribution (see subsection 279(3));
                (c) the standard base provider amount (see subsection (2)).
 (2) The standard base provider amount for a day for an individual is the amount prescribed by the rules.
 (3) If the individual has means not disclosed status for a day, the provider‑based subsidy reduction for the day is the lesser of the following:
 (a) the maximum non‑clinical care contribution for the day;
 (b) the standard base provider amount for that day.
 (4) Despite subsection (1), the provider‑based subsidy reduction for a registered provider for the classification type ongoing for the service group residential care for an individual for a day is zero if:
 (a) the hotelling contribution and non‑clinical care contribution for the individual for the day is taken to be zero under section 280; or
 (b) the non‑clinical care contribution for the individual for the day is zero under subsection 279(4) or (5).
 (5) Despite subsections (1), (3) and (4), the provider‑based subsidy reduction for a registered provider for the classification type ongoing for the service group residential care for an individual is the amount prescribed by the rules if the individual is included in a class of individuals prescribed by the rules.

Subdivision E—Approved residential care homes with specialised status