Section 5L(1) VEA


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An accommodation charge is an accruing periodic payment that generally applies to people who enter high level care and have sufficient assets. If a resident is liable to pay an accommodation charge, it is payable until the resident leaves the aged care facility, in addition to the residential care fees. For those who entered care prior to 1 July 2004, the accommodation charge is only payable for a maximum of five years. How is the amount of accommodation charge calculated?

The maximum charge is worked out on a sliding scale based on the resident's assets and date of entry. For a resident who is eligible to pay an accommodation charge, the Department Human Services (DHS) works out the amount of the charge based on the person's assets (as assessed by DVA or Centrelink). DHS will then notify the resident and their aged care provider in writing about the amount of the accommodation charge.

Note: For a person who entered care prior to 20 March 2008, their accommodation charge is negotiated and agreed between the person (or their representative) and the aged care facility. Options for payment of accommodation charge

A resident cannot be asked to pay the accommodation charge more than a month in advance. Payment of an accommodation charge can also be deferred or paid from the estate if the service provider agrees. The service provider is entitled to charge interest at no more than double the lower pension deeming rate applicable at the time of entry to the facility. Moving to low level care

The accommodation payment may change if the resident is reassessed and determined to be low level at a later date.


If the care level changes and the resident receives low level care ...

Then an accommodation charge...

At the same facility

continues to be payable.

At another facility

will cease to be payable and the resident may be asked to pay an accommodation bond.    

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C&S Reference Library

Aged Care Means Testing Guide – Topic 3.4.4 Accommodation Bonds


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