Income test assessment of accommodation bonds

An accommodation bond is not assessable under the income test.  Such bonds have specifically been excluded from the definition of a financial asset and therefore are not subject to deemed income.

However, if a person leaves the aged care facility and returns home, the deeming provisions will apply to the balance of the bond when it is refunded.  The Aged Care Act 1997 provides that this must occur within two months of their departure from the facility.

Refund of the balance of an accommodation bond should not be interpreted as receipt of income.