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Asset test assessment of accommodation bonds
An accommodation bond is assessable as an asset when paid as a lump-sum.
The amount to be held in a pensioner's assessment is the amount paid, less any draw down that has occurred.
Thus the value held in the pensioner's assessment will decrease by $2600 per year over the five year draw down period. This draw down occurs monthly over the year.
Periodic accommodation bond payments (like accommodation charge payments) have no asset value. However, where a pensioner uses assessable assets to fund the periodic payments, their assessable assets will diminish over time.
The assessment rules applied to hostel entry contributions prior to 1 October 1997 do not apply to accommodation bonds.