Accommodation bonds if you entered care before 1 July 2014

Accommodation bonds were used if you were assessed with low-level needs or you moved into an extra service place with high-care needs. You can find more information on accommodation bonds on this page.

Accommodation charges were used for residents who had high-level care needs on the date they first entered care. You can read more about this on our accommodation charges page.

What is an accommodation bond?

An accommodation bond is a lump sum amount that you pay for your accommodation in an aged care home.

When you leave the aged care home, the bond amount (minus any deductions that you have agreed to) is returned to you or your estate.

How much is the accommodation bond?

The bond amount is different for each resident and can vary from one aged care home to the next. It is based on what you can afford to pay.

How is the bond amount worked out?

Your bond amount would have been worked out through an assessment of your assets on the date you entered the aged care home. This amount could not have exceeded the difference between the minimum assets amount and the total value of your assessed assets at the time.

The amount you pay would have been agreed to between you and the aged care home. The minimum assets amount is provided in the Schedule of Fees and Charges for Pre-1 July 2014 Residential and Home Care Recipients. 

How do I pay my accommodation bond?

There are 3 ways you can pay your accommodation bond:

Why could I be paying interest?

If you didn’t pay your bond in full on the day you moved into the home, you may have been charged interest on the outstanding amount due.

The rate of interest that you can be charged on overdue accommodation bond amounts was agreed upon between you and your provider at your date of admission. This rate is fixed on the day you move in and is set out in your accommodation bond agreement.

The Australian Government sets the maximum interest rate you can be charged. You and your provider may have agreed to a lower rate. 

What can my aged care home take from my bond in retention amounts?

Your aged care home may either:

• deduct an amount from your accommodation bond balance, or
• include an amount in a bond periodic payment for each month or part of a month.

These are called retention amounts.

The maximum amount of time for deducting monthly retention payments is 5 years. The 5-year period started on the day that you entered your aged care home as a permanent resident, unless:

• the aged care home was not certified on that day – the 5-year period started the day the aged care home became certified
• you were granted financial hardship for your accommodation bond – the 5-year period started the day after the determination ended, or
• you transferred from respite care – the 5-year period started the day of the transfer.

The Australian Government sets the maximum retention amount that can be charged. A full list of current rates is provided in the Schedule of Fees and Charges for Pre-1 July 2014 Residential and Home Care Recipients.

Can my accommodation bond amount change?

The maximum bond amount cannot change while you are at the same aged care home. This is because your assessed assets are fixed from when you first moved into the home. If your assets go up or down after you have entered the home, it doesn’t affect your bond amount, the interest you may be charged, or the monthly retention amount.

If you agreed to pay a lower amount of bond than the maximum bond amount, your bond may increase if you move to a different room. But you can never pay more than your maximum bond amount. 

What if I move to a new aged care home?

The new aged care home may collect the bond balance from you. The bond you pay at your new aged care home cannot be more than the refunded amount from your previous aged care home. It may be less, depending on your means assessment on the day you enter the new aged care home.

The new aged care home may charge a different amount for retention and interest. However, the retention period does not restart.

If you paid an accommodation bond at your previous aged care home, you cannot be asked to pay an accommodation charge at your new aged care home.

Read more about moving aged care homes further down this page.

What is an accommodation bond agreement?

Your aged care home should have offered you an accommodation bond agreement when you first moved into the home. 

An accommodation bond agreement must include:

• your date of entry to the service
• the agreed accommodation bond amount
• how the bond will be paid (lump sum, periodic payment, or a combination)
• the date the bond is due to be paid
• amounts that will be deducted from the bond balance for retention amounts
• the interest rate you may be charged for periodic payments
• whether paying the bond entitles you to specific accommodation or additional services
• any financial hardship provisions that apply to you
• the circumstances in which the accommodation bond balance must be refunded.

An accommodation bond agreement may be included as part of your service agreement or it may be a separate document.

If you transfer to a new aged care home and choose to keep your current fee arrangements, your new provider must offer you a new accommodation bond agreement. This must be done within 21 days from the date that you move into the new home.

Moving aged care homes

If you move to another aged care home after 1 November 2025, you can keep your current fee arrangement or opt in to the post-1 November 2025 means testing and accommodation arrangements.

What happens after a resident dies?

If a resident dies, the aged care home must refund their lump sum balance (minus any deductions allowed over the care period). This must be done within 14 days of receiving either:

• proof of probate of the resident’s Will (the official proving of a Will), or
• letters of administration (authority to administer the estate of someone who has died without making a Will).

The provider may refund the lump sum balance without proof of these documents, if they are confident that the correct legal beneficiary has been identified. However, the provider has the right to see these documents. This protects them and the resident’s estate by ensuring the resident’s wishes are followed by confirming who is entitled to the refund.

How to make a complaint

If you have any concerns about accommodation bonds, there are two ways you can make a complaint:

• Speak to the manager at your aged care home about your concerns.
• If you are not comfortable raising your concerns, or cannot resolve your concerns with your aged care home provider, you can contact the Aged Care Quality and Safety Commission.

Read more about how to make a complaint.