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Option for paying bond
An accommodation bond can be paid as a lump-sum; as periodic payments or a combination of both. It can also be deferred and paid out of the proceeds of the estate of a resident.
Where a person chooses to pay a bond as periodic payments, each payment will consist of a component to cover the drawdown the aged care facility could have made on the bond had it been paid as an equivalent lump sum, plus a component to cover the interest the facility could have earned on the bond had it been paid as an equivalent lump sum. The interest rate at implementation on 1 October was 8.86% being the treasury yield rate for August. This rate is subject to indexation and changes every month. For the month of April 1998, the rate is 8.933%.