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Accommodation Bonds

Q1. How much Bond will I pay and do I have to pay a Bond?

A. The amount of the bond is set by Tallwoods Corner Aged Care Service and agreed between you and the Approved Provider. Bond amounts can vary between different locations and rooms within an aged care service. They can also vary between residents in an aged care facility as well as between other aged care services in the same locality. It is your choice if you wish to pay either:

  • A lump sum bond - If you agree to pay the bond as a lump sum you are not required by the aged care service to pay the lump sum during the first six months following admission, although you may choose to do so.
    You will however, need to agree to the amount of the bond on admission. You may also be charged interest on the outstanding bond amount from the time you enter the aged care service. Interest charged on the outstanding amounts is governed by the Department of Health and Ageing.
  • Bond periodic payment (monthly) - you may choose not to pay a bond but to pay the amount of interest charged on the 'Agreed' bond by periodic payment, or a combination - paying part bond and bond periodic payment.

Agreement to pay a bond and the amount can only be entered into when you are admitted to the aged care service and you cannot later be asked to pay more than you originally agreed to, even if your circumstances change sometime after you enter the aged care service.

This can be discussed with the Admissions Manager to assist you in making an informed decision.

Q2. Is my Bond money safe?

A. From 1 July 2006, under new prudential arrangements, when you pay a lump sum bond the care provider must:

  • Guarantee in writing to repay the bond balance within the statutory time periods, which is within 14 days of giving notice of your departure
  • On the day you leave if you notify your care provider of your departure more than 14 days before you leave,
  • Within 14 days after you leave if no notice is given or in the case of death,
  • 14 days after the care provider is shown probate or letters of administration; and
  • Provide you with a copy of the bond agreement and a written guarantee within 7 days of the agreement being signed.

If the care provider does not refund your bond balance on the day you leave, interest will be paid on your bond balance until it is refunded by the provider in accordance with Dept of Health Legislation.

Furthermore, in the event a care provider becomes bankrupt or insolvent, the Government will repay your bond balance entitlement, including any interest that has accrued on the bond balance.

Q3. What happens to my home?

A. When you enter the aged care facility, the value of your personal home will not be counted as an asset if:

  • Your spouse or dependent child is living there;
  • A carer eligible for an income support payment has lived there for two years; or
  • A close relative who is eligible for an income support payment has been living there for at least five years.
  • You are assessed as a low care resident your home will not be counted as an asset for 2 years (if your personal home of residence is rented out during your stay in the aged care facility the property is not counted as an asset nor the income assessed)
  • You are assessed as a high care resident your home will not be counted as an asset for 5 years (if your personal home of residence is rented out during your stay in the aged care facility the property is not counted as an asset nor the income assessed)

Q4. Can I leave or be transferred to another aged care facility?

A. Yes. Should you decide to transfer to another aged care service, you will be required to notify Tallwoods Corner in writing giving 7 days notice of intent to leave. Your bond will be refunded within the required amount of time as set by the Department of Health and Ageing.
You cannot be asked to pay a bond to a second facility that is higher than the amount refunded by the first facility, unless there is a gap of more than 28 days between leaving the first facility and entering the second or by mutual agreement with the second facility should you wish to enter within the 28 day time frame.

 
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