Accommodation Bonds & Charges

Accommodation Bonds

Some residents may be assessed to pay an Accommodation Bond when they enter an aged care facility, dependant on the value of residents' assets at the time they enter a facility. The range of accommodation bonds payable varies between providers and locations.

Under the Aged Care Act, providers are able to deduct from the bond a retention amount for a maximum of five years while a resident is in aged care. The retention amount is advised annually in July and applies to bonds entered into at the time that the resident entered aged care. These bonds are typically paid on entering a low care facility or an extra services high care facility. No bonds are payable for residents entering a High Care facility unless it has an extra services status approved by the Government.

Accommodation Charges

Accommodation Charges may also be payable by residents entering High Care facilities depending on the value of their assets at the time of entrance to a facility.

The maximum Accommodation Charge is determined by Government and is a contribution payment for the provision of accommodation or rent component of care services. The Accommodation Charge replaces the imposition of a Bond for residents in High Care. The Charge is calculated on a daily basis and is usually charged in advance on a monthly basis. For a resident who entered a facility after 1 July 2004, the Accommodation Charge continues for the duration of a resident’s tenancy.

The Aged Care Act specifically covers the charging of Bonds and Charges in residential care facilities. Prudential requirements of the Act guarantee the protection of residents' Bonds paid to aged care providers.  

ACCV has created a range of Accommodation Charge tools for Members' reference.

The ACCV Manager of Aged Care Finance is Tony Gribble. For more information on residential finance service support, contact Tony.

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