What happens to the Accommodation Bond?
If your assets exceed a certain amount when you enter low (hostel) level care or an ‘extra service’ place you may be asked to pay an accommodation bond. Accommodation bonds are like an interest free loan to the facility and by law must be used by the home to improve building standards and the quality and range of aged care services provided to you. The facility is able to keep the interest received from the bond while you live in the facility.
Bond amounts and payments can vary and should be negotiated with the provider. However, you cannot be charged a bond that would leave you with less than a minimum amount of assets that is determined by the Australian Government.
The facility is able to deduct monthly amounts for five years from the bond, called retention amounts, to use toward maintaining and improving your accommodation. The balance of the bond is repaid to you when you leave. The Australian Government sets the maximum amount that the facility can retain.
Bond amounts and payments can vary and should be negotiated with the provider. However, you cannot be charged a bond that would leave you with less than a minimum amount of assets that is determined by the Australian Government.
The facility is able to deduct monthly amounts for five years from the bond, called retention amounts, to use toward maintaining and improving your accommodation. The balance of the bond is repaid to you when you leave. The Australian Government sets the maximum amount that the facility can retain.