Document ID: chunk:federal_register_of_legislation:F2025C00076:reg:127
Version: federal_register_of_legislation:F2025C00076
Segment Type: reg
Provision Reference: reg 127
Character Range: 171787–174074

127  Additional amounts may be agreed by care recipient in unfunded place
 (1) This section specifies the circumstances in which an amount (an additional amount), agreed between a care recipient and the approved provider of the residential care service through which the care recipient is being provided with residential care, may be included at step 5 of the resident fee calculator set out in section 58‑2 of the Transitional Provisions Act in working out the maximum daily amount of resident fees for the care recipient.
 (2) The maximum daily amount of resident fees (the maximum daily fee) payable by the care recipient for a day (the relevant day) may include an additional amount agreed between the care recipient and the approved provider if:
 (a) before entering into the agreement with the care recipient, the approved provider has informed the care recipient, in writing, that the proposed maximum daily fee is more than the maximum daily amount that would have been payable if the care recipient's place were funded; and
 (b) the care recipient agrees to pay the amount before it is incurred; and
 (c) on the relevant day:
 (i) the care recipient is approved under Part 2.3 of the Aged Care Act 1997 as a recipient of residential care; and
 (ii) the care recipient's place in the service is unfunded.
 (3) For this section:
 (a) a care recipient's place in a residential care service is funded if residential care subsidy is payable under Chapter 3 of the Transitional Provisions Act for the provision of care to the care recipient through the service; and
 (b) a care recipient's place in a residential care service is unfunded if residential care subsidy otherwise payable under Chapter 3 of the Transitional Provisions Act for the provision of care to the care recipient through the service is not payable because of paragraph 42‑1(2)(a) of that Act.
Note: Under paragraph 42‑1(2)(a) of the Transitional Provisions Act, an approved provider is not eligible for residential care subsidy in respect of a care recipient if residential care provided to the care recipient is excluded (see section 42‑7 of the Transitional Provisions Act because the approved provider exceeds the approved provider's allocation of places for residential care subsidy.

Part 4—Home care fees