Accommodation Bond Retention Amounts

*This page only applies for residents who first entered care before 1 July 2014*

Retention periods

A retention amount may be deducted from an accommodation bond balance or included in a bond periodic payment for each month, or part of a month that a care recipient who first entered a low care residential place before 1 July 2014, for a maximum of five years. The five-year period generally commences on the day the resident enters the aged care home as a permanent resident. However,

  • if the aged care home was not certified on that day, it commences on the day the aged care home became certified; or
  • if a determination of financial hardship was in force in respect of that resident, it commences the day after the day the determination ceased to be in force; or
  • if the resident is transferred from respite care to permanent accommodation, it commences on the day of the transfer.

The five-year period is cumulative so it is reduced by each month for which retention amounts were deducted from an accommodation bond (or entry contribution) the resident paid to another aged care home. If the resident is provided with care for two months or less, retention amounts can be retained for the whole of the month in which the resident entered the aged care home, and the following two months.

Retention amounts

The maximum monthly retention amount that providers may keep from a resident’s accommodation bond depends on:

  • the capped maximum amount applicable at the time the resident enters the aged care home (see tables below). The capped maximum amounts are indexed annually in line with the Consumer Price Index;
  • the amount the provider and resident agree on in the accommodation bond agreement entered into when the resident enters the aged care home.

The Australian Government does not set the retention amount, but does specify the capped maximum amounts (see tables below). The amounts as specified in the Aged Care (Transitional Provisions) Act 1997 for X and Y are $21,120 and $40,860 respectively for the 2014-15 financial year. The amount needs to be agreed between the provider and the resident and included in the accommodation bond agreement. Bond agreements cannot specify an amount that exceeds the capped maximum.

Where a bond is paid partly by lump sum and partly by periodic payments, the maximum retention amount applies to the total (lump sum equivalent) accommodation bond. The monthly retention amount that providers can keep does not vary while the resident lives at that aged care home, except that once the 5 year limit is reached no further retention amounts are allowed to be deducted from the bond. The capped maximum monthly retention amount depends on the size of the bond. There are two bond size thresholds that impact on the maximum accommodation bond retention amounts as follows:

  • for bonds of at least the upper threshold:
For residents who entered care or transferred to a new servicein the period For bonds of at least Maximum monthly retention (Y)
From 1/7/2014 $40,860 $340.50
1/07/2013 to 30/6/2014 $39,720 $331.00
1/07/2012 to 30/06/2013 $38,760 $323.00
1/07/2011 to 30/06/2012 $38,160 $318.00
1/07/2010 to 30/06/2011 $36,900 $307.50
1/07/2009 to 30/06/2010 $35,880 $299.00
1/07/2008 to 30/06/2009 $35,040 $292.00
1/07/2007 to 30/06/2008 $33,600 $280.00
1/7/2006 to 30/06/2007 $32,820 $273.50
1/7/2005 to 30/6/2006 $31,860 $265.50
1/7/2004 to 30/6/2005 $31,140 $259.50
1/7/2003 to 30/6/2004 $30,540 $254.50
1/7/2002 to 30/6/2003 $29,520 $246.00
1/7/2001 to 30/6/2002 $28,680 $239.00
1/7/2000 to 30/6/2001 $27,060 $225.50
1/7/1999 to 30/6/2000 $26,320 $220.00
1/10/1997 to 30/6/1999 $26,000 $215.00
  • for bonds up to the lower threshold:
For residents who entered care or transferred to a new service in the period For bonds of no more than Maximum monthly retention (X)
From 1/7/2014 $21.120 $176.00
1/07/2013 to 30/6/2014 $20,520 $171.00
1/07/2012 to 30/06/2013 $20,040 $167.00
1/07/2011 to 30/06/2012 $19,740 $164.50
1/07/2010 to 30/06/2011 $19,080 $159.00
1/07/2009 to 30/06/2010 $18,540 $154.50
1/7/2008 to 30/06/2009 $18,120 $151.00
1/07/2007 to 30/06/2008 $17,400 $145.00
1/7/2006 to 30/06/2007 $16,980 $141.50
1/7/2005 to 30/6/2006 $16,500 $137.50
1/7/2004 to 30/6/2005 $16,140 $134.50
1/7/2003 to 30/6/2004 $15,840 $132.00
1/7/2002 to 30/6/2003 $15,300 $127.50
1/7/2001 to 30/6/2002 $14,880 $124.00
1/7/2000 to 30/6/2001 $14,040 $117.00
1/7/1999 to 30/6/2000 $13,670 $115.00
1/10/1997 to 30/6/1999 $13,500 $115.00

 

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