ADA Cottage - Accommodation Bonds

Accommodation bonds were introduced by the Commonwealth Government to allow aged care facilities to maintain and improve the quality of accommodation provided to clients.

Only residential aged care providers who meet prescribed building and care standards are able to charge an accommodation bond.

If you are asked by ADA Cottage to pay an accommodation bond, the Government regulates:

  • The circumstances under which you can be asked to pay a bond
  • The minimum amount of assets you must be left with after paying the bond, and
  • How ADA Cottage uses the bond

If you are required to pay an accommodation bond it may be paid in a lump sum or by periodical payment, or as a combination of the two methods.

Working out an accommodation bond

The accommodation bond is agreed between you and ADA Cottage, there is no fixed charge for an accommodation bond. However, you will not be charges an accommodation bond which will leave you with less than 2.5 times the annual basic age pension (currently $34,500).

ADA Cottage may ask you to pay an accommodation bond based on you assets. An asset assessment will determine if you are eligible for subsidized accommodation costs, and whether you may be asked to pay accommodation payments.

How much of the bond is taken by ADA Cottage

The Government sets the maximum retention amount that ADA Cottage can charge and keep. ADA Cottage will also keep the interest received on the bond.

Legislation requires that any retention from accommodation bonds must be used for the purpose of providing aged care services.

Paying the accommodation bond

When moving into ADA Cottage as a low level care client, you have up to six months to pay your accommodation bond if you choose to pay as a lump sum.

The amount of the accommodation bond will be agreed when you move in.

ADA Cottage will charge interest on the amount of the accommodation bond from the time you enter ADA Cottage until the accommodation bond is fully paid.

If you are provided with care at ADA Cottage for two months or less, ADA Cottage will hold onto three months of the retention amounts.

What happens when I leave?

When you leave ADA Cottage, your accommodation bond, less the allowable retention amounts that have been deducted, will be refunded within 14 days. If we are unable to refund the accommodation bond on the day you leave we will pay you interest on the amount refundable until it is repaid in full.

Your rights

ADA Cottage is unable to ask to be paid an accommodation bond unless we have entered into an agreement stipulating your rights and responsibilities. You have up to 21 days after entering ADA Cottage before you are required to enter into such an agreement.

You can only agree to enter into an accommodation bond when you enter ADA Cottage, and you will not be asked to pay more than you have originally agreed to, even if your circumstances change.