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Departure from Aged Care


Last amended: 1 August 2014

Reasons for departure from aged care

An aged care resident may depart aged care by reason of:    

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  • death;
  • admission to hospital;
  • return home;
  • return to family;
  • admission to another form of care; or
  • admission to another aged care facility
Refund of accommodation bond, RAD or RAC

Where a person has paid an accommodation bond, a [glossary:refundable accommodation deposit:DEF/Refundable Accommodation Deposit (RAD)] (RAD) or a [glossary:refundable accommodation contribution:DEF/Refundable Accommodation Contribution (RAC)] (RAC), the balance of that payment for accommodation will be refunded when the person departs aged care. The balance is the original bond amount less the retention amounts drawn down by the care provider, or the RAD or RAC less any deductions as agreed in the residential agreement. The refunded amount is an assessable asset.

Transfer of accommodation bond to another facility

A person is assessed on their ability to pay an accommodation bond only once, on entry to low level care. Thereafter, if the person moves to another facility, the balance of the bond will be refunded, and may be transferred to the new facility subject to the resident's and provider's agreement.

Where a person moving from one facility to another did not originally pay a bond, or did not re-enter aged care within 28 days of departure , they may be asked to pay a bond in the new facility.

Residents who move to another aged care facility within 28 days

Special arrangements apply for [glossary:continuing care:] [glossary:residents:] who move to another aged care facility within 28 days of leaving a previous facility.

The maximum amount of [glossary:accommodation:] [glossary:bond:] the resident can be charged for a subsequent entry is the refunded balance from the previous facility.  That is, only the balance of the five year retention period will carry over to the new service provider. With agreement of both the service provider and the resident, the resident can also rollover the accommodation bond balance, or pay the accommodation charge if moving to high care.

These rules do not apply to the [glossary:RAD:DEF/Refundable Accommodation Deposit (RAD)] or [glossary:RAC:DEF/Refundable Accommodation Contribution (RAC)].

Re-entering care after 28 days

If a continuing care resident re-enters care after a break of more than 28 days, the person will be subject to the post 1 July 2014 rules. A combined income and assets assessment will be required.  Periods of hospital or social leave are not counted towards the 28 days. More

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.



Hostel type services, which cater for those people who need middle to lower levels of help with daily tasks and personal care.

Services in this category include:

  • Assistance with the activities of daily living (such as bathing, dressing and eating);
  • Mobility and communication;
  • Meals, including special diets;
  • Certain treatments and procedures;
  • Recreational therapy and rehabilitation support;
  • Assistance in obtaining health and therapy services; and
  • Support for people with cognitive impairments.

Low level care is also known as Category 5-8 care.

An accommodation charge is an additional daily fee, which is paid by person's residing in ACAT approved permanent High Level Care.

It is paid in addition to the standard resident daily care fee and any additional income tested fee, which may apply.

Accommodation charges are payable for as long as a resident remains in care.  For those residents who entered care prior to 1 July 2004 the accommodation charge is limited to a maximum five years.


See Also: - defintion of ACAT - definition of 'High Level Care'



An accommodation charge only applies to those persons entering an aged care facility prior to 1 July 2014.