Accommodation Bonds Negotiation

Belated Accommodation Bond Payments being requested 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, and then contact us for assistance.

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 $40,500 in assets.

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 $40,500 in assets.

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.

What impact is the Global Financial Crisis having on accommodation bonds?

Late in 2008, the global financial crisis had a sobering effect on aged care resident's assets levels because:

real estate values have fallen
share market indices have halved
financial assets may have been frozen

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.

The cost of the Accommodation Bond Negotiation is $660 (includes GST).

What our placement clients say about our service ...

Many thanks. It is a outstanding result and I am more than happy to recommend your services as outstanding. In fact I shall take the liberty to recommend you to my personal financial adviser who has clients in similar situation.

Mr. W (Glen Iris) after successful negotiation of a bond (27 Nov 2009)

RSL (Vic) thank you very much for the professional manner in which placement services were provided to Mr. E.

Mr. Jeff Jackson OAM (28 August 09)

Mum has settled very well. We just wanted to say thank you for all your help. You saved us having a lot of sleepless nights.

Jan and Pat (23 July 09)

You did a great job - having people who know the business acting for us made a world of difference.

Martin K.(27 May 09)

Patricia, Noel, Colleen and myself are very grateful of your assistance in placement of Mrs J. in an ideal home and location. Please accept our gratitude from the family.

Alan J. (28 Oct 08)

Many thanks for making a potentially difficult time a positive experience for all of us.

Sue and Steve (8 Jan 08)

more testimonials ...

Aged Care Placement Information Directory