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This definition applies to all payments.
This term is defined in the Aged Care Act 1997. An accommodation bond is a lump sum amount that may be paid for entry to low level (hostel) care or extra care services (exempt nursing homes) (1.1.E.250) from 1 October 1997. It may be paid as a lump sum, periodic payment, or a combination of the 2.
Between 1 October and 5 November 1997, high level aged care facilities (nursing homes) were able to charge accommodation bonds.
Policy reference: SS Guide 4.6.2.10 General Provisions for Exempt Assets
The amount of the accommodation bond is not a determinant for home ownership.
Example: A single pensioner who retained their former home on entry to high level aged care (nursing home) will continue to be treated as a home owner regardless of the amount of accommodation bond paid.
Policy reference: SS Guide 4.6.3.70 Exempting the Principal Home - Care Situations
The accommodation bond balance is the refundable amount of an accommodation bond. Under the Aged Care Act 1997, providers of Commonwealth subsidised aged care may keep a monthly retention amount from the accommodation bond for the duration of the retention period (up to 5 years).
The accommodation bond balance was always assessed under the assets test, but not subject to the deeming provisions.
Lump sum accommodation bonds are exempt from the assets test regardless of when they are paid.
Act reference: SSAct section 9(1D) To avoid doubt…, section 1118(1) Certain assets to be disregarded in calculating the value of a person's assets
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Last reviewed: 16 July 2009
