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Accommodation payments
- Why are there accommodation payments?
- How is the accommodation payment assessed?
- What if my care needs change?
- Can all aged care homes charge an accommodation payment?
- Financial information that approved providers are required to provide
- Accommodation bonds are guaranteed
A number of aged care homes providing a higher standard of accommodation and hotel-type services have been granted extra-service status. Extra-service homes can ask you to pay an accommodation bond, rather than an accommodation charge, for high-level care.
If you enter respite care (more information) you don’t have to pay an accommodation payment.
Why are there accommodation payments?
Accommodation payments enable all aged care homes to maintain and upgrade the safety and quality of their buildings. By law, aged care homes must use all money raised by accommodation bonds and charges to improve accommodation and services.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 an accommodation bond or accommodation charge.Read more: About assets assessments
Your former home is counted as an asset, for working out whether you can be asked to pay an accommodation payment, unless certain exemption conditions apply (for example, if your spouse continues living there). You must be left with assets at least equivalent to 2.5 times the annual single age pension after you pay the accommodation payment. If you cannot afford to pay, you could look at applying to become a concessional or assisted resident (more information).
The Department of Health and Ageing subsidises accommodation costs for people who:
- have assets below the equivalent of four times the annual single age pension
- receive an Australian Government means-tested pension, and
- meet certain home ownership criteria.
Read more: About concessional and assisted residents
Read more: About assets assessments
There are also hardship provisions for people who have difficulty paying fees and charges. These allow fees and charges to be reduced on application to the Department of Health and Ageing.
Financial hardship forms are available from the Aged Care Information Line on 1800 500 853 (Calls to this number are free from fixed phones. Mobile calls at mobile rates).
What if my care needs change?
If your care needs change from low-level care to high-level care, and you remain in the same aged care home (ageing in place (more information)) and have paid an accommodation bond, the bond arrangements you first entered into will continue.If you move to another home to receive high-level care, you can, with the agreement of the home, transfer the balance of your accommodation bond to the new home. Otherwise, you may be asked to pay an accommodation charge based on your assets.
Read more: Can I move to another home?
Can all aged care homes charge an accommodation payment?
Only aged care homes that are certified by the Australian Government as meeting minimum standards of care and accommodation can charge accommodation payments.Accommodation payments are paid as either accommodation bonds or accommodation charges. These payments are a contribution towards the cost of accommodation and the government expects aged care homes to use these payments to develop and maintain accommodation, by spending them on furnishings, gardens, building renovations, and so on.
Financial information that approved providers are required to provide
Depending on whether you are a current resident of an aged care home, a prospective resident or their representative, there is certain financial information that the Approved Provider (more information) must show you.Read more: Financial information that approved providers are required to provide.
Accommodation bonds are guaranteed
The Australian Government guarantees your accommodation bond (more information). This means that you can be 100 per cent certain that your bond balance entitlement (including any interest that has accrued on the bond balance) will be repaid if your provider becomes bankrupt or insolvent.Read more: About how accommodation bonds are guaranteed
Common questions on this topic:
- What are accommodation charges?
- What help does the government provide?
- My mum has dementia and I am her representative for dealing with the Department about her fees. The Department has sent letters on the maximum fee mum can be charged, but I don't know how much the home charges.
See more common questions on this topic | See all common questions
