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Accommodation charge
If you have been assessed as needing high-level care (more information) and you enter an aged care home, you may be asked to pay an accommodation charge, paid as a daily fee. These payments can only be charged under certain conditions, and depend on your assets (more information).
Read more: Asset assessments
A number of aged care homes providing a higher standard of accommodation and hotel-type services have been granted extra-service (more information) status. Extra-service homes can ask residents to pay an accommodation bond (more information), rather than an accommodation charge, for high-level care.
Users of respite care (more information) do not have to pay an accommodation payment.
What are my payment options for the accommodation charge?
There are a number of payment options.If you choose to pay by renting your former home, the income from rent will not affect your pension or your daily care fees (more information). Your home will not be counted under the pensions assets test while you are liable to pay the accommodation charge.
You can agree with the aged care home to pay the charge later on, from your estate. Interest may be charged on this amount at double the lowest pension deeming rate that applies at the time you enter the home. Currently, the maximum accommodation bond interest rate for residents who enter care in the 1 July to 30 September 2008 quarter is 11.75%.
How long will I pay an accommodation charge?
If you first entered permanent residential aged care (more information) after 1 July 2004, you will be asked to pay the accommodation charge for as long as you are in a high-level care place (excluding respite care or an extra-service place).People who first entered aged care homes before 1 July 2004 can only be asked to pay the accommodation charge for a maximum of five years.
What are the rates of accommodation charge?
The rate of accommodation charge will vary depending on the date you enter care and the amount of your assets.As of 1 July 2007, an assisted resident who first entered aged care after 1 July 2004 can be asked to pay a daily charge of $10.33 if their assets at entry are $53,353 or more. Other residents can be asked to pay a charge of $18.06 if they have assets of $67,460 or more. Residents with assets less than $34,500 cannot be asked to pay a charge. There is a sliding scale for residents with assets between $34,500 and $67,460. Aged care homes are required to use the money received for accommodation charges to upgrade the accommodation and services they provide.
