1.1.A.15 Accommodation bond, accommodation bond balance
This definition applies to all payments.
Definition: accommodation bond
This term is defined in the Aged Care (Transitional Provisions) Act 1997. An accommodation bond is a lump sum amount that may be paid for entry to low level (hostel) care or extra care services (exempt nursing homes) (1.1.E.250) from 1 October 1997. It may be paid as a lump sum, periodic payment, or a combination of both.
Between 1 October and 5 November 1997, high level aged care facilities (nursing homes) were able to charge accommodation bonds.
Note: From 1 July 2014, people entering residential aged care homes with sufficient income and assets will have the option of paying for their accommodation by a refundable deposit (1.1.R.113), daily accommodation payment (1.1.D.14) or combination. From 1 July 2014, the distinction between low and high level care no longer applies.
The amount of the accommodation bond is not a determinant for home ownership.
Example: A single pensioner who retained their former home on entry to an aged care facility (nursing home) will continue to be treated as a home owner regardless of the amount of accommodation bond paid. In this situation, the former principal home is exempt from the assets test for up to 2 years from the date of entry into the care situation. The exemption period may be extended under certain circumstances.
Definition: accommodation bond balance
The accommodation bond balance is the refundable amount of an accommodation bond. Under the Aged Care (Transitional Provisions) Act 1997, providers of Commonwealth subsidised aged care may keep a monthly retention amount from the accommodation bond for the duration of the retention period (up to 5 years).
Assessing the accommodation bond balance prior to 1 July 2005
The accommodation bond balance was always assessed under the assets test, but not subject to the deeming provisions.
Assessing the accommodation bond balance from 1 July 2005
Lump sum accommodation bonds are exempt from the assets test regardless of when they are paid.