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4.2.2 Assessments for continuing care residents
A continuing care resident may lodge a new request for their assets to be determined if they are moving to a different facility, and are either not rolling over their accommodation bond or they consider their assets on entry to a subsequent facility are less than their original assessment. The previous rules will continue to apply for these residents.
However, if they move services and choose to have the new rules apply to them, or they leave care for more than 28 days (and subsequently re-enter care), they are then treated as if they entered care on or after 1 July 2014 and will be assessed as per the new arrangements.
Simply moving between levels of home care will not trigger the choice to move to the new arrangements. But if a person moves from one type of care to another, such as from home care to residential care, they will be covered by the new arrangements.
A resident who was in care prior to 1 July 2014, who has not had a break in care of more than 28 days (other than approved leave) and who has not moved services and elected to be covered by the new arrangements. They are subject to the fee and assessment arrangements as they existed on 30 June 2014.
An accommodation bond is an amount of money paid by Low Level Care and Extra Service Care residents in an aged care facility. An accommodation bond may be paid as a lump sum, or by periodic payments, or a combination of both lump sum and periodic payments.
The provider can deduct a monthly retention amount, for a maximum of 5 years, from the accommodation bond. The monthly retention amount is a fixed amount specified in the accommodation agreement and cannot exceed the capped maximum amount applicable at the time of entry to the facility. The provider also retains any interest derived from the bond.
The balance of the lump sum accommodation bond is refundable to the resident or their estate on departure. The refunded accommodation bond balance is an assessable asset.
If there is a liability under the accommodation bond agreement for the bond to be paid wholly, or partly by periodic payments and the former principal home is rented out, then both the former home and the rental income are exempt from the income and assets tests.