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Government Subsidised Care

Government Subsidised Care is care provided to persons in approved facilities.

The government subsidy (also known as “pensioner supplement”), is paid directly to the facility by DH&FS on the behalf of pensioners receiving this care.

Where a care resident pays an accommodation bond more than ten times the annual rate of social security age pension, the pensioner supplement paid by DH&FS to the aged care facility to replace rent assistance is no longer paid.

 

 

An approved facility under the Aged Care Act 1997 is one that has been assessed to meet certain standards of care and accommodation.

Note: Nursing homes and nursing home beds that are fully funded by a State Government do not come under the Aged Care Act 1997.

Department of Health and Family Services.

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.

 

 

Department of Health and Family Services.

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