Accommodation Bond Negotiation

Aged Care Connect has experience and strategies in place which benefit any family being requested to pay a bond or extra service fees. We have become experts at Accommodation bond negotiation.

Are you being asked to pay a belated Accommodation Bond with No Residential Care Agreement Signed?

Are you being asked to pay Accommodation bond payments a considerable time after your loved one has entered residential care? If no residential care agreement has been signed within 21 days of admission, it is important that you contact us immediately. You may be eligible not to pay any Accommodation bond. Read the submission by the Law Institute of Victoria about these situations.

What is the aged care Accommodation bond?

An Accommodation bond is usually paid when a resident permanently enters a low care or extra services high care aged care home. The Accommodation bond is an interest free loan from the resident to the aged care provider. The interest earned from the Accommodation bond monies is used by the aged care provider to maintain their current building or to build new aged care homes for future residents.

Is the level of the bond set by the Commonwealth Government?

Absolutely Not. Many families are surprised to find out that the Accommodation bond is negotiated between the family and the aged care operator. There is definitely no fixed level of Accommodation bond. The only guide that the Commonwealth Government provides is that a resident must be left with at least $37,500 in assets as at 20th March 2010.

How much Accommodation bond will I pay?

There is no fixed amount for a bond. The amount of the bond is to be agreed between you and the aged care provider. Bond sizes can vary widely between residents in an aged care home as well as between homes, even in the same locality. However, you cannot be charged a bond which would leave you with less than $37,500 in assets as at 20th March 2010.

Does the level of Accommodation bond have an impact on the quality of care being delivered?

Absolutely Not. There is no relationship between the level of Accommodation bond that a resident pays to the level of care received once they have been admitted to the aged care home.

Should you be asked to pay a "minimum bond" by the aged care operator?

Absolutely not. Before the global financial crisis, some aged care operators were dramatically increasing their "minimum bond" levels Acceptable to enter their aged care. Because residents's asset values were increasing at the time (especially real estate values), aged care operators enjoyed increasing their "minimum bond" levels skywards. It was common practice for some aged care operators to be requesting $300,000 to $750,000 Accommodation bonds.

If you would like to talk to an Accommodation bond expert please contact us.

As a result of our continuing work in this area, we are compiling the Aged Care Connect "Accommodation bond barometer", which provides families with invaluable information about the level of Accommodation bond that they would fairly be expected to pay.

Accommodation Bonds: the REAL Story

Accommodation Bonds: submission by the Law Institute of Victoria

We are Australia's leading family advocate in relation to assisting families with Accommodation bond negotiations in residential care.

We are currently advocating and negotiating Accommodation bonds for family clients in all states of Australia.

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