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Accommodation bonds are similar to the entry contributions that are currently payable to some hostels, but not nursing homes.
The term entry contribution has been changed to accommodation bond. Accommodation bond payments now apply to entry into low level care places and exempt nursing homes(extra service places) but do not apply to entry into normal high level care (nursing home) places. Persons who enter normal high level care places may be required to pay an accommodation charge and these are discussed in more detail in DI C13/98.
Facilities that charge an accommodation bond can use income from the bond to make improvements to the facility. In addition, the facility is allowed to retain (draw down) no more than $2,600 of the bond each year for only the first five years - making a total maximum draw down of $13,000. The balance of the bond is refundable to the resident or estate when the resident leaves the facility or dies.
The actual amount a person pays as an accommodation bond is a matter that is negotiated and agreed between the person and the aged care facility.
However, the Aged Care Act 1997 provides certain protections for residents limiting the amount they can be charged.
Some facilities may decide not to charge accommodation bonds.