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We help families navigate
the aged care placement maze.

We will always
place your elderly
loved one first ......

and make the move
to residential aged care
a more positive experience.

site updated
13th May 2012

Accommodation Bond Negotiation

Aged Care Connect has experience and strategies in place which benefit any family being requested to pay a bond or extra service fees. We have become experts at accommodation bond negotiation.

Are you being asked to pay a belated Accommodation Bond with No Residential Care Agreement Signed?

Are you being asked to pay accommodation bond payments a considerable time after your loved one has entered residential care? If no residential care agreement has been signed within 21 days of admission, it is important that you contact us immediately. Read the submission by the Law Institute of Victoria about these situations.

What is the aged care accommodation bond?

An accommodation bond is usually paid when a resident permanently enters a low care or extra services high care aged care home, and the resident has more than $40,500 in assets. The accommodation bond is an interest free loan from the resident to the aged care provider. The interest earned from the accommodation bond monies is used by the aged care provider to maintain their current building or to build new aged care homes for future residents.

Is the level of the bond set by the Commonwealth Government?

No. Many families are surprised to find out that the accommodation bond is negotiated between the family and the aged care operator. There is definitely no fixed level of accommodation bond. The only guide that the Commonwealth Government provides is that a resident must be left with at least $40,500 in assets.

How much accommodation bond will I pay?

There is no fixed amount for a bond. The amount of the bond is to be agreed between you and the aged care provider. Bond sizes can vary widely between residents in an aged care home as well as between homes, even in the same locality. However, you cannot be charged a bond which would leave you with less than $40,500 in assets.

Does the level of accommodation bond have an impact on the quality of care being delivered?

No. There is no direct relationship between the level of accommodation bond that a resident pays to the level of care received once they have been admitted to the aged care home.

Should you be asked to pay a "minimum bond" by the aged care operator?

No. Because residents's asset values have increased over time (especially real estate values), aged care providers have increased their "minimum bond" levels Accommodation bonds can vary from $50,000 to over $500,000 .

As a result of our experience in this area, we are busy compiling the Aged Care Connect "accommodation bond barometer", which provides families with useful information about the level of accommodation bond that they should be fairly expected to pay.

We can help you arrange the most appropriate accommodation bond for your family