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Accommodation bond
- How is the amount for an accommodation bond worked out?
- How is the accommodation payment assessed?
- How much of the bond is taken by the home?
- When do I need to pay an accommodation bond?
- What happens when I leave the home?
- What are my rights?
- the circumstances under which you can be asked to pay a bond
- the minimum amount of assets you must be left with after paying the bond, and
- how the home uses the bond.
How is the amount for an accommodation bond worked out?
The accommodation bond amount is agreed between you and the home.There is no fixed amount for an accommodation bond. However, you cannot be charged an accommodation bond that would leave you with less than 2.25 times the annual single basic age pension.
How is the accommodation payment assessed?
A home may ask you to pay an accommodation payment based on your assets. An assets assessment will determine whether you are eligible for subsidised accommodation costs, and whether you may be asked to pay accommodation payments.Read more: About assets assessments
How much of the bond is taken by the home?
The amount that the home can take from your bond each month is agreed with you when you enter the home. However, the government sets the maximum retention amount that the home can charge and keep. The home also keeps the interest received on the bond.Current and previous maximum retention rates can be found on the Department of Health and Ageing website.
When do I need to pay an accommodation bond?
After entering low-level care, you have up to six months to pay your accommodation bond if you choose to pay as a lump sum.You should agree on the amount of your accommodation bond when you move in. Remember, interest can be charged on that amount from the time you enter the home until it is fully paid.
If you are provided with care for two months or less, the aged care home can hold on to up to three months of retention amounts (more information).
What happens when I leave the home?
When you leave, your accommodation bond (less allowable monthly retention amounts (more information) that have been deducted) should be refunded within 14 days. If the provider does not refund your bond on the day you leave the home, they must pay you interest on the amount refundable until they repay it in full.What are my rights?
You cannot be asked to pay an accommodation bond unless you have entered an agreement setting out your rights and responsibilities. You have up to 21 days after entering a home before you need to enter such an agreement.You can only agree to pay an accommodation bond when you enter the home, and you cannot be charged more than you originally agreed to, even if your circumstances change, unless you wish to do so.
Common questions on this topic:
- What happens if I move from one low-level (hostel) care to another low-level aged care home?
- What help does the government provide?
- If I just need to move to high-level care in another part of the same home what happens to my bond?
See more common questions on this topic | See all common questions
