3.4.1 Overview

People who were in residential care on 30 June 2014 remain under their fee arrangements unless they leave care for more than 28 days or move to a new facility and elect to be covered by the new arrangements. They are referred to as continuing care residents . If a resident chooses to opt in to the post 1 July 2014 arrangements, they will need to be assessed as a new entrant.

3.4.1.1 Pre 1 July 2014 care fees

There are two main types of care fees that residents may be asked to pay:

• basic fee (see topic 3.4.2); and
• income-tested care fee (see topic 3.4.3).

Residents with sufficient income could be asked to pay an income-tested fee but there was no asset testing for care fees.

Residents may also be asked to pay an extra service fee. This is an extra payment if a higher standard of accommodation is chosen or additional services, such as hairdressing or pay TV in rooms, is elected.

3.4.1.2 Pre 1 July 2014 accommodation payments

There are two categories of accommodation payments:

• accommodation bond (see topic 3.4.4) paid by low level care residents or people receiving care on an 'extra service' basis (for low or high level care), and
• accommodation charge (see topic 3.4.5) paid by residents entering into high level care.

Residents with sufficient assets could be asked to make an accommodation payment. The assets assessment for their accommodation bond/charge is based on a snapshot of the person's circumstances as at their date of entry to care or the date the determination was made.