Your Agreement with your aged care home:
Be aware that you can apply for as many homes as you like. When a place becomes available, the aged care home will contact you or your nominated contact person. You need not accept if you feel that the time has not yet come. Explain this, and ask that they keep your loved one on their list :-) However, if your answer is "Yes, thank you", then be sure to let the other aged care homes know that you have found somewhere you like, to ensure that they no longer need to keep your application open.
Before you move in, an aged care home will offer you a Resident Agreement covering things like:
If you have been asked to pay towards your accommodation costs, the home will also offer you an Accommodation Agreement covering your costs and how they can be paid.
The Protection of Residential Aged Care Accommodation Lump Sum Accommodation Payments
29 May 2017
https://agedcare.health.gov.au/reform/the-protection-of-residential-aged-care-accommodation-lump-sum-accommodation-payments
Be aware that these are legal agreements between you and your chosen aged care home, so Do read it Very Carefully and do ask to have someone you trust read it over with you.
and........................ What IS in your Resident Aged Care Agreement...
http://www.agedcarecrisis.com/resources/nursing-home-checklist#care-and-services-what-s-included-extra-charges
Be aware too that the aged care home may have included a form for you to fill in listing your assets and other financial information. You Do Not need to provide Any of this financial information to the aged care home, and although they may ask, you are Not obliged to give them a copy. This is between you and Centrelink or the Department of Veterans' Affairs (DVA) who will send out their letter to you within a week or two.*
********* Frequently asked questions:
https://agedcare.health.gov.au/aged-care-reform/residential-care-and-home-care-frequently-asked-questions
16 July 2019
Existing residents and the aged care reforms
Q: How will the new fee arrangements affect existing care recipients?
A: The changes to fees only apply to people entering aged care on or after 1 July 2014. In residential care, continuing residents will remain under their current fee arrangements unless they leave care for more than 28 days or move to a new facility and elect to be covered by the new arrangements.
The fees that can apply to existing pre 1 July 2014 home care recipients are unchanged from current arrangements. They will be covered by the new arrangements if they enter residential aged care.
Refundable Accommodation Deposit (RADs) and Daily Accommodation Payment (DAPs)Q: Can a consumer roll over their accommodation payment when they move facilities?
A: No. Under the Aged Care Act 1997, the accommodation payment must be refunded ‘if the care recipient is to enter another service to receive residential care’.
Prior to entry to a new service, a resident subject to the 1 July 2014 fee arrangements will need to negotiate and agree an accommodation price with their new provider. The new provider cannot charge an accommodation price that is greater than their advertised price.
Unlike the arrangements in place in respect of bonds paid before 1 July 2014, where residents who paid an accommodation bond could have the bond balance transferred to the second aged care home, accommodation payments are not ‘automatically’ rolled over where a resident moves to a new service.
Q: Does a resident’s DAP need to be re-calculated each time the maximum permissible interest rate (MPIR) changes?
A: No. The MPIR used to work out the equivalence between a refundable deposit and daily payment amounts for a resident is that which is current on the day the resident agreed an accommodation payment with the aged care home. The same MPIR continues to apply unless the person subsequently moves rooms within the aged care home.
Q: What can be deducted from a RAD?
A: If a resident has paid a refundable deposit, the provider must deduct DAPs at the resident’s request. Other amounts – such as care fees or the costs of additional services – may be deducted, if agreed between the resident and the provider. This must be set out in writing.
Q: Can a resident agree to an accommodation price that is greater than their net assets?
A: Yes. The new accommodation payments arrangements give residents and providers the flexibility to negotiate an accommodation price that is greater than a resident’s net assets. Residents can choose to pay for their accommodation by a lump-sum refundable deposit, rental-style daily payments, or a combination of both.
The combination method allows residents to pay a partial refundable deposit, ensuring that they are left with the minimum permissible asset level (currently $45,500), and then pay the balance of the agreed price by daily payments. Residents can elect to have the daily payments deducted from the refundable deposit.
Q: How long does a resident have to pay a RAD?
A: A resident has 28 days from the date they enter the facility to decide how to pay for their accommodation. If within those 28 days they make a decision to pay a RAD, they have 6 months to pay. If they make a decision after those 28 days to pay a RAD, it is due as agreed between the provider and the resident. A resident must pay a DAP until the RAD is paid.
more answers at https://agedcare.health.gov.au/aged-care-reform/residential-care-and-home-care-frequently-asked-questions
What does a Resident Agreement cover?
The Resident Agreement will provide details on things such as services, fees, and rights and responsibilities. It is a legal agreement between you and your chosen aged care home.
27 September 2018
If you have not already done so before, you can also ask for additional information such as the home's meal policy, visitor policy and other details about your living in the home.
Your Resident Agreement should include the following:
Do be aware too of the Adjustment payment:
If you choose an extra-service aged care home, then you must have an extra-service agreement between you and your aged care provider. The agreement should specify what the home will provide, how much it will cost, how often the fees can be increased and by how much. This extra-service agreement will be in addition to your normal resident agreement.
Additional fees for specified care and services:
You are looking particularly under Version history amendments (page 4), and then at Attachment A which deals with:
Additional reading:
http://www.agedcarecrisis.com/resources/nursing-home-checklist#care-and-services-what-s-included-extra-charges
The new Aged Care Commissioner says that most people who have cause to make a complaint don’t. This is particularly in areas such as health, disability and aged care services where there are high stakes such as ongoing care needs and a dependence on the service.
If you choose to enter into a Resident Agreement, you do not have to sign it at the time it is offered. You may want to take time to ask your friends, family, carer, financial adviser or legal practitioner for help to go through the agreement, although you do not have to.
Note: There is no time limit for signing the Resident Agreement. However, it is still in your best interests to finalise the Resident Agreement as soon as you can, as it covers your rights and responsibilities.
Accommodation prices approved by the Aged Care Pricing Commissioner
Q: Do accommodation prices approved by the Aged Care Pricing Commissioner remain valid if the service transfers ownership?
A: Yes. If the Aged Care Pricing Commissioner has approved accommodation prices above a refundable deposit of $550,000 for a service, and the ownership of that service transfers to another Approved Provider, the approval remains valid provided that the conditions attached to the approval continue to be met.
An approval ceases to have effect if there is a change in the location at which residential care is provided through the service.
Q: Can accommodation prices approved by the Aged Care Pricing Commissioner be indexed?
A: Yes. Under section 29 of the Fees and Payments Principles 2014 (No. 2), providers are permitted to index an accommodation price approved by the Aged Care Pricing Commissioner. The approved amount may be indexed annually using the following formula:
Indexed amount = Approved amount x (Most recent index number / Previous index number)
The index number refers to the All Groups Consumer Price Index (CPI) number, which is published on the Australian Bureau of Statistics website. The relevant CPI number is the rate applicable for the quarter ending before the first day of the approval year.
For example:
On 1 July 2014, a service receives approval from the Aged Care Pricing Commissioner to charge an accommodation price of $700,000 for a room. On 1 July 2015, the provider can apply indexation to the approved price. The most recent index number would be the CPI rate for the quarter ending 30 June 2015. The previous index number is the CPI rate for the quarter ending 30 June 2014.
The indexed amount is generally rounded to the nearest whole dollar. However, in cases where the indexed amount to be rounded is 50 cents, the amount is rounded down.
Q: Does indexation apply to accommodation prices agreed with existing residents?
A: No. Indexation cannot be applied to prices agreed with existing residents who have a current accommodation agreement in place. The indexed amount only applies in relation to a new resident who has not entered into an accommodation agreement or care prior to the day that the approved amount is indexed.
Q: Are accommodation prices approved by the Aged Care Pricing Commissioner automatically updated for indexation on the My Aged Care website?
A: No. Prices published on My Aged Care are not automatically indexed; providers are responsible for updating the published prices.
Q: If I publish an accommodation price that is less than the approved amount, which amount do I index?
A: It is the approved amount that is indexed, regardless of the accommodation price that is actually published. This is then the maximum amount that could be published.
Q: Can a resident who entered care on or after 1 July 2014 be asked to pay a higher accommodation price if they want to move to a new room with a higher published price?
A: If a resident (who entered care on or after 1 July 2014) moves rooms within a facility, they may be charged an accommodation price that is higher or lower than the amount that they were paying, as long as the move is voluntary. The accommodation agreement must be varied to specify the new price and new room or part of room.
The new agreed price for the new room cannot be more than the maximum price that was published for that (new) room on the day that the agreement was varied. It is the maximum permissible interest rate (MPIR) current on the day that the accommodation agreement is varied that must be used to calculate the equivalence between the refundable deposit and daily payment amounts for the new room. If the accommodation payment for the new room is higher than the amount previously being paid, the resident may choose to pay the additional amount by daily payments, by a refundable deposit, or by a combination of both.
If the accommodation payment for the new room is lower than the amount previously being paid, and the resident has paid a refundable deposit, the provider must refund any excess balance to the resident.
--------------------------
Be aware too that should you be going into an aged care home for Respite Care, this short stay still means that you will need a Resident Agreement with your chosen aged care home. This is so that your rights and responsibilities of both yourself, and the aged care home are set out.
This Resident Agreement should also include:
for Financial hardship assistance for Home Care and Residential Respite Care Form (SA462)
Use this form and guide to test your eligibility to receive financial hardship assistance with your fees and charges in Home Care, or Residential Respite Care - this is assistance for the Basic Daily Care Fee.
10 July 2019
--------------------------
New aged care means assessment forms:
The Department of Human Services (DHS) has released the new Aged Care Calculation of your cost of care (SA486) digital form. Your clients can fill it in online, print and sign it and send it to DHS with their supporting documents. The digital form uses dynamic questions tailored to the customers’ individual circumstances.
For clients who would prefer to use our simplified paper forms, they are as follows:
Customers entering Residential Care don’t need to fill in a form if they:
It is important to make sure their income and assets are up to date when they enter into care to ensure their assessment can be completed automatically. They can do this by accessing their Centrelink online account or by calling Centrelink on 132 300or DVA on 1800 555 254.
Department of Health
26 August 2019
- = - = - = - =
Can I withdraw from or cancel the Resident Agreement?
If you change your mind and want to withdraw from the Resident Agreement within 14 days of signing, you need to let your aged care home know straight away, in writing. You will still need to pay your care fees and charges for the care you have received during the 14 days. If you have made any other payments to your provider during that time, you are entitled to a refund.
Can I change the terms of the Resident Agreement?
Changes can only be made to your Agreement if both you and your aged care home agree. If you wish to end your Agreement, you will have to give the home notice of your intention to do so, preferably in writing.
Refunding deposit balances
The refundable deposit balance must be refunded if the care recipient dies or ceases to be provided with residential care or flexible care. The refund must be made in the way specified in the Fees and Payments Principles.
There are time limits for refunds of refundable deposits. If the care recipient dies, the refund must be paid within 14 days of the approved provider being shown probate or letters of administration. If the care recipient is moving to another service, the refundable deposit must be paid:
In any other case, the refundable deposit is to be paid within 14 days of the care recipient ceasing to be provided with residential care or flexible care.
It is possible to delay refunds to secure re-entry (see section 52P-4, Aged Care Act).
Act reference: Aged Care Act 1997 section 52P-1, section 52P-4
Payment of interest
Under the Act, providers have a core responsibility to repay refundable deposits and accommodation bonds as, and when, they fall due.
Paying interest
Approved providers pay interest to residents at two different rates. Interest must be paid to the resident on the same day that the refundable deposit balance, accommodation bond balance or entry contribution is refunded (see section 52P-3, Aged Care Act, and Division 1, Part 7, Fees and Payments Principles).
Under the Act, providers have a core responsibility to repay refundable deposits and accommodation bonds as, and when, they fall due.
Providers pay interest with respect to refundable deposits and accommodation bonds:
Providers pay interest with respect to entry contributions:
Approved providers are required to refund refundable deposit balances and accommodation bond balances as and when they fall due. Failure to refund a refundable deposit balance or accommodation bond balance as and when it falls due constitutes non-compliance with the Act, and sanctions may be imposed. Non-compliance with this requirement must be disclosed to the department through the Annual Prudential Compliance Statement and to residents, prospective residents and their representatives on request. Non-compliance with this requirement may also be considered where the department assesses the on-going suitability of a person or approved provider to provide aged care.
Act reference: Aged Care Act 1997 section 52P-3
Fees and Payments Principles 2014 (No.2) Part 7 Division 1, Part 7 Division 2
Base interest rate
The BIR is not payable for the day a resident leaves a service, but for each day after the resident has departed the service until the refundable deposit balance or accommodation bond balance is actually refunded or the legislated timeframe expires, whichever is earlier. The BIR used in calculating interest is the BIR applicable on the day after the resident's departure or, if the person has died, the day after the approved provider is shown a copy of probate or letters of administration.
The interest payable at the BIR rate is calculated by:
Maximum permissible interest rate
The rate of MPIR used in calculating interest is the MPIR applicable on the day after the end of the legislated timeframe for the refund of the refundable deposit balance or accommodation bond i.e., the day that the provider becomes non-compliant with its bond refund responsibilities (see section 69, Fees and Payments Principles).
The interest rate remains fixed at this rate until the refundable deposit balance or accommodation bond is refunded.
If the provider refunds the refundable deposit or accommodation bond after the legislated timeframe for refund has expired, the interest payable is calculated by:
If the provider refunds the refundable deposit balance or accommodation bond balance after the legislated timeframe for refund has expired, the interest payable is the sum of:
When the interest is payable
Approved providers must pay interest on the refundable deposit balance or accommodation bond balance or entry contribution balance on the day on which the provider refunds the balance to the care recipient (see section 68 and section 73, Fees and Payments Principles).
Act reference: Fees and Payments Principles section 68, section 73
Accrual of interest - resident gives approved provider more than 14 days notice of moving to another service
If the resident gives more than 14 days notice of moving to another service, then the refundable deposit balance or accommodation bond balance is due to be refunded on the day that the resident leaves the service. If the approved provider refunds the refundable deposit balance or accommodation bond balance on the day the resident leaves the service, then they will not have to pay any interest. If the approved provider does not refund the refundable deposit balance or accommodation bond balance by the time the resident leaves the service, then the approved provider must pay the interest calculated at the MPIR for the period starting the day after the resident leaves the service, and ending on the day the refundable deposit balance or accommodation bond balance is actually refunded.
Example: On 1 August 2014, John told Scott's Aged Care Service that he would move to Andy's Aged Care Service on 16 August 2014. He moves on 16 August 2014. If Scott's Aged Care Service gave the accommodation bond balance to John on:
Accrual of interest - resident gives less than 14 days notice of moving to another service
If the resident provides notice within 14 days before leaving the service, then the refundable deposit balance or accommodation bond balance must be refunded within 14 days after the day on which notice was given. If the refundable deposit balance or accommodation bond balance is refunded within 14 days, then BIR is payable from the day after the resident leaves the service until the end of 14 days after the resident provided notice or until the refundable deposit balance or accommodation bond balance is paid.
If the approved provider does not refund the refundable deposit balance or accommodation bond balance within 14 days of when the notice was given, then the approved provider must pay the MPIR for the period commencing on the day after 14 days notice was given and ending on the day the refundable deposit balance accommodation bond balance is actually refunded.
Example: On 10 August 2014, Fred told Georgie's Aged Care Service that he was moving to Sunset Aged Care Service on 15 August 2014. He moves on 15 August 2014. If Georgie's Aged Care Service gave the accommodation bond balance to Fred on:
Accrual of interest - resident leaves service to move to another service without giving any notice (applicable since 1 July 2006)
The refundable deposit balance or accommodation bond balance must be refunded within 14 days of the day after the resident leaves the service. If the refundable deposit balance or accommodation bond balance is refunded within the 14 days, then the approved provider pays BIR for the period commencing the day after the resident left the service and finishing on the day the approved provider actually refunded the refundable deposit balance or accommodation bond balance. If the approved provider does not refund the refundable deposit balance or accommodation bond balance within the 14 day period, then the approved provider pays BIR for the period from the day after the resident left the service to the expiration of 14 days and MPIR for the period commencing on the day after the refundable deposit balance or accommodation bond balance should have been refunded and finishing on the day the refundable deposit balance or accommodation bond balance is actually refunded.
Example: Bob left Rosie's Aged Care Service on 10 July 2014 to move to another service and did not provide any notice. If the accommodation bond balance was refunded on:
Accrual of interest - resident dies
BIR begins to accrue from the day after the day on which the resident dies. The rate of BIR is the BIR applicable on the day after probate or letters of administration are shown to the provider. If the approved provider refunds the refundable deposit balance or accommodation bond balance before the end of 14 days after the approved provider has been shown probate or letters of administration, then the approved provider pays BIR for the period commencing on the day after the resident died and finishing on the day the refundable deposit balance or accommodation bond balance is actually refunded. No MPIR is payable because the approved provider has refunded the refundable deposit balance or accommodation bond balance within the legislated timeframe.
If the approved provider does not refund the refundable deposit balance or accommodation bond balance within 14 days after being shown probate or letters of administration, then the approved provider must pay:
An approved provider can also decide to refund an a refundable deposit balance or accommodation bond balance before being shown probate or letters of administration.
Example: Paula died on 5 July 2014 and probate was shown to the approved provider on 20 August 2014. The accommodation bond balance was due to be refunded by 3 September 2014, 14 days after probate was shown.
Act reference: Aged Care Act 1997 section 52P-3
Fees and Payments Principles 2014 (No.2) section 68, section 69, section 73
Residential and Accommodation Agreements:
What if I need help understanding the agreements?
Since the Resident Agreement and Accommodation Agreement are legally binding documents, it is important you understand everything in the document before you sign it. If you have any questions, you should ask your new aged care home. It is their responsibility to make sure the agreements offered to you are clear.
If you like, you can ask your family, friends, carer or a legal practitioner to help you understand the terms of your agreements. The proposed agreements may not automatically include all the things that you think are important, so it is a good idea to check:
Need more help? Finding a financial planner:
Financial planners may be able to help with retirement planning, wealth management, savings planning, superannuation, banking and portfolio administration. They may also give advice on managed funds, and other financial products available in the marketplace.
Selecting the right financial planner for your situation is essential. You should choose a licensed financial planner who can provide the services you need. Your financial planner should also be able to provide you with a Financial Services Guide.
You can check whether a company or a financial planner is licensed by searching the Australian Financial Services Authorised Representatives Register on the Australian Securities and Investments Commission website.
You can also search for financial planners in your area on the Financial Planning Association of Australia website. This website provides the contact details for all licensed financial planners in the country.
MoneySmart:
The Australian Securities and Investments Commission also runs the MoneySmart website which helps people make smart choices about their personal finances. MoneySmart has lots of tools and information to help people with decisions about issues such as retirement planning, aged care accommodation and financial products such as reverse mortgages, see:
If you are having language difficulties because the agreements are not written in your preferred language, you can contact the Australian Government Translating and Interpreting Service (TIS) on 131 450. TIS covers more than 100 languages and is available 24 hours a day, 7 days a week, for the cost of a local call.
Wanting Financial advice?
You may want to consult with a financial adviser about your finances. There are various Click here for Government services and resources that can help you obtain appropriate financial advice. It’s a good idea to do some research to see what options work best for you. You can also use Centrelink's free Financial Information Service on 132 300.
Facing Financial Hardship?
If you believe you would face financial hardship in paying the required fees and payments, you can ask to be considered for financial hardship assistance. Each case is considered on an individual basis.
Depending on your personal situation, you may apply for financial assistance with:
Assessment of financial hardship assistance claims
To determine if your aged care costs would cause you financial hardship, the Department of Human Services (DHS) will consider your:
You can apply for financial hardship assistance for your permanent residential aged care fees and charges, please use a Claim for Financial hardship assistance – Residential Aged Care form (SA461).
https://www.humanservices.gov.au/individuals/forms/sa461
10 July 2019
What are unrealisable assets?
If you have more than $34,206.90 in assets, you can apply for an asset to be declared as unrealisable. An asset is considered unrealisable if you cannot sell it or borrow against it.
More information on unrealisable assets will be available when you apply for financial hardship assistance through the Department of Human Services.
The following assets may be considered as unrealisable:
If you are applying for financial hardship assistance with your fees and charges in Home Care, or Residential Respite Care you need Form SA462.
https://www.humanservices.gov.au/individuals/forms/sa462
13 February 2019
Use this form and guide to test your eligibility to receive financial hardship assistance with your fees and charges in Home Care, or Residential Respite Care - this is assistance for the Basic Daily Care Fee.
or for more information on fees and charges or financial assistance, call My Aged Care on 1800 200 422 or visit myagedcare.gov.au
What If I am not able to sign the agreements?
If you understand your agreement and want to sign it but are physically unable to, you can ask someone with the legal authority to sign on your behalf, such as someone who holds power of attorney for you.
Rights and Responsibilities
No matter which aged care home you move into, your rights and responsibilities will be the same as those of every other resident. To make sure your rights and responsibilities are protected, there is legislation that all aged care homes funded by the Australian Government must follow. The Charger of Residents' Rights and Responsibilities will be displayed in your aged care home, or you can ask your home for a copy when they offer you your Resident Agreement.
For additional information, go to www.myagedcare.gov.au This information is for your general information and use only, and is not intended for any other purpose.
1 July 2021
=======================================
Be aware that you can apply for as many homes as you like. When a place becomes available, the aged care home will contact you or your nominated contact person. You need not accept if you feel that the time has not yet come. Explain this, and ask that they keep your loved one on their list :-) However, if your answer is "Yes, thank you", then be sure to let the other aged care homes know that you have found somewhere you like, to ensure that they no longer need to keep your application open.
Before you move in, an aged care home will offer you a Resident Agreement covering things like:
- services
- fees
- any additional fees
- rights and responsibilities
If you have been asked to pay towards your accommodation costs, the home will also offer you an Accommodation Agreement covering your costs and how they can be paid.
The Protection of Residential Aged Care Accommodation Lump Sum Accommodation Payments
29 May 2017
https://agedcare.health.gov.au/reform/the-protection-of-residential-aged-care-accommodation-lump-sum-accommodation-payments
Be aware that these are legal agreements between you and your chosen aged care home, so Do read it Very Carefully and do ask to have someone you trust read it over with you.
and........................ What IS in your Resident Aged Care Agreement...
http://www.agedcarecrisis.com/resources/nursing-home-checklist#care-and-services-what-s-included-extra-charges
Be aware too that the aged care home may have included a form for you to fill in listing your assets and other financial information. You Do Not need to provide Any of this financial information to the aged care home, and although they may ask, you are Not obliged to give them a copy. This is between you and Centrelink or the Department of Veterans' Affairs (DVA) who will send out their letter to you within a week or two.*
********* Frequently asked questions:
https://agedcare.health.gov.au/aged-care-reform/residential-care-and-home-care-frequently-asked-questions
16 July 2019
Existing residents and the aged care reforms
Q: How will the new fee arrangements affect existing care recipients?
A: The changes to fees only apply to people entering aged care on or after 1 July 2014. In residential care, continuing residents will remain under their current fee arrangements unless they leave care for more than 28 days or move to a new facility and elect to be covered by the new arrangements.
The fees that can apply to existing pre 1 July 2014 home care recipients are unchanged from current arrangements. They will be covered by the new arrangements if they enter residential aged care.
Refundable Accommodation Deposit (RADs) and Daily Accommodation Payment (DAPs)Q: Can a consumer roll over their accommodation payment when they move facilities?
A: No. Under the Aged Care Act 1997, the accommodation payment must be refunded ‘if the care recipient is to enter another service to receive residential care’.
Prior to entry to a new service, a resident subject to the 1 July 2014 fee arrangements will need to negotiate and agree an accommodation price with their new provider. The new provider cannot charge an accommodation price that is greater than their advertised price.
Unlike the arrangements in place in respect of bonds paid before 1 July 2014, where residents who paid an accommodation bond could have the bond balance transferred to the second aged care home, accommodation payments are not ‘automatically’ rolled over where a resident moves to a new service.
Q: Does a resident’s DAP need to be re-calculated each time the maximum permissible interest rate (MPIR) changes?
A: No. The MPIR used to work out the equivalence between a refundable deposit and daily payment amounts for a resident is that which is current on the day the resident agreed an accommodation payment with the aged care home. The same MPIR continues to apply unless the person subsequently moves rooms within the aged care home.
Q: What can be deducted from a RAD?
A: If a resident has paid a refundable deposit, the provider must deduct DAPs at the resident’s request. Other amounts – such as care fees or the costs of additional services – may be deducted, if agreed between the resident and the provider. This must be set out in writing.
Q: Can a resident agree to an accommodation price that is greater than their net assets?
A: Yes. The new accommodation payments arrangements give residents and providers the flexibility to negotiate an accommodation price that is greater than a resident’s net assets. Residents can choose to pay for their accommodation by a lump-sum refundable deposit, rental-style daily payments, or a combination of both.
The combination method allows residents to pay a partial refundable deposit, ensuring that they are left with the minimum permissible asset level (currently $45,500), and then pay the balance of the agreed price by daily payments. Residents can elect to have the daily payments deducted from the refundable deposit.
Q: How long does a resident have to pay a RAD?
A: A resident has 28 days from the date they enter the facility to decide how to pay for their accommodation. If within those 28 days they make a decision to pay a RAD, they have 6 months to pay. If they make a decision after those 28 days to pay a RAD, it is due as agreed between the provider and the resident. A resident must pay a DAP until the RAD is paid.
more answers at https://agedcare.health.gov.au/aged-care-reform/residential-care-and-home-care-frequently-asked-questions
What does a Resident Agreement cover?
The Resident Agreement will provide details on things such as services, fees, and rights and responsibilities. It is a legal agreement between you and your chosen aged care home.
27 September 2018
If you have not already done so before, you can also ask for additional information such as the home's meal policy, visitor policy and other details about your living in the home.
Your Resident Agreement should include the following:
- the name of your aged care home
- the policies and practices used to set your fees and charges
- the level of daily fee you will be asked to pay
- any Extra Services you have agreed to receive, and their $ costs
- any circumstances where you might be asked to leave and how the aged care home will help you find somewhere more appropriate
- your rights and responsibilities as a resident in your new aged care home
- your aged care home's responsibilities to you as a resident
- how the aged care home will deal with any complaints you, your carer, friends or family may make
- any other matters agreed between you and the aged care home's manager, within the requirements of the Aged Care Act 1997
- NOW is a good time to have that discussion about what happens if/when you have a complaint. Better to have this discussion now than when your loved one is in distress.
Do be aware too of the Adjustment payment:
- One–off initial payment
- Time-limited costs involved with residents transitioning into care, eg:
- Time spent getting to know the resident and their family
- Individualised care planning
- Behaviour management
- Health care assessments
- Facilitating health care arising from assessments:
- Pain control, dental care, palliative care etc
- Developing an advanced care directive in partnership with the resident and their family.
If you choose an extra-service aged care home, then you must have an extra-service agreement between you and your aged care provider. The agreement should specify what the home will provide, how much it will cost, how often the fees can be increased and by how much. This extra-service agreement will be in addition to your normal resident agreement.
Additional fees for specified care and services:
You are looking particularly under Version history amendments (page 4), and then at Attachment A which deals with:
- Item 1.1 Administration
- Item 1.2 Maintenance of buildings and grounds
- Item 1.3 Accommodation
- Item 1.4 Furnishings
- Item 1.5 Bedding
- Item 1.6 Cleaning services, goods and facilities
- Item 1.7 Waste disposal
- Item 1.8 General laundry
- Item 1.9 Toiletry goods
- Item 1.10 Meals and refreshments
- Item 1.11 Care recipient social activities
- Item 1.12 Emergency assistance
Additional reading:
http://www.agedcarecrisis.com/resources/nursing-home-checklist#care-and-services-what-s-included-extra-charges
The new Aged Care Commissioner says that most people who have cause to make a complaint don’t. This is particularly in areas such as health, disability and aged care services where there are high stakes such as ongoing care needs and a dependence on the service.
- “That is understandable because people are vulnerable, sometimes they’re unwell or they might be frail. Quite often it is about an ongoing relationship. It can be too hard or they don’t want to make a fuss.”
Some people are scared to speak up, or worry about the implications if they raise a concern.
“At any stage my staff can do site visits, both announced and unannounced. That’s one of the ways we sometimes deal with anonymous issues around things like cleanliness, or people being showered at a terrible time of the night. We don’t just rely on the information we get from the parties, we can and do have a look for ourselves.” - The Aged Care Complaints Commissioner can now be followed on Twitter at @AgedCComplaints
If you choose to enter into a Resident Agreement, you do not have to sign it at the time it is offered. You may want to take time to ask your friends, family, carer, financial adviser or legal practitioner for help to go through the agreement, although you do not have to.
Note: There is no time limit for signing the Resident Agreement. However, it is still in your best interests to finalise the Resident Agreement as soon as you can, as it covers your rights and responsibilities.
Accommodation prices approved by the Aged Care Pricing Commissioner
Q: Do accommodation prices approved by the Aged Care Pricing Commissioner remain valid if the service transfers ownership?
A: Yes. If the Aged Care Pricing Commissioner has approved accommodation prices above a refundable deposit of $550,000 for a service, and the ownership of that service transfers to another Approved Provider, the approval remains valid provided that the conditions attached to the approval continue to be met.
An approval ceases to have effect if there is a change in the location at which residential care is provided through the service.
Q: Can accommodation prices approved by the Aged Care Pricing Commissioner be indexed?
A: Yes. Under section 29 of the Fees and Payments Principles 2014 (No. 2), providers are permitted to index an accommodation price approved by the Aged Care Pricing Commissioner. The approved amount may be indexed annually using the following formula:
Indexed amount = Approved amount x (Most recent index number / Previous index number)
The index number refers to the All Groups Consumer Price Index (CPI) number, which is published on the Australian Bureau of Statistics website. The relevant CPI number is the rate applicable for the quarter ending before the first day of the approval year.
For example:
On 1 July 2014, a service receives approval from the Aged Care Pricing Commissioner to charge an accommodation price of $700,000 for a room. On 1 July 2015, the provider can apply indexation to the approved price. The most recent index number would be the CPI rate for the quarter ending 30 June 2015. The previous index number is the CPI rate for the quarter ending 30 June 2014.
The indexed amount is generally rounded to the nearest whole dollar. However, in cases where the indexed amount to be rounded is 50 cents, the amount is rounded down.
Q: Does indexation apply to accommodation prices agreed with existing residents?
A: No. Indexation cannot be applied to prices agreed with existing residents who have a current accommodation agreement in place. The indexed amount only applies in relation to a new resident who has not entered into an accommodation agreement or care prior to the day that the approved amount is indexed.
Q: Are accommodation prices approved by the Aged Care Pricing Commissioner automatically updated for indexation on the My Aged Care website?
A: No. Prices published on My Aged Care are not automatically indexed; providers are responsible for updating the published prices.
Q: If I publish an accommodation price that is less than the approved amount, which amount do I index?
A: It is the approved amount that is indexed, regardless of the accommodation price that is actually published. This is then the maximum amount that could be published.
Q: Can a resident who entered care on or after 1 July 2014 be asked to pay a higher accommodation price if they want to move to a new room with a higher published price?
A: If a resident (who entered care on or after 1 July 2014) moves rooms within a facility, they may be charged an accommodation price that is higher or lower than the amount that they were paying, as long as the move is voluntary. The accommodation agreement must be varied to specify the new price and new room or part of room.
The new agreed price for the new room cannot be more than the maximum price that was published for that (new) room on the day that the agreement was varied. It is the maximum permissible interest rate (MPIR) current on the day that the accommodation agreement is varied that must be used to calculate the equivalence between the refundable deposit and daily payment amounts for the new room. If the accommodation payment for the new room is higher than the amount previously being paid, the resident may choose to pay the additional amount by daily payments, by a refundable deposit, or by a combination of both.
If the accommodation payment for the new room is lower than the amount previously being paid, and the resident has paid a refundable deposit, the provider must refund any excess balance to the resident.
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Be aware too that should you be going into an aged care home for Respite Care, this short stay still means that you will need a Resident Agreement with your chosen aged care home. This is so that your rights and responsibilities of both yourself, and the aged care home are set out.
This Resident Agreement should also include:
- the dates when you will be staying
- details of the respite care booking fee (which is actually a prepaid basic daily fee)
for Financial hardship assistance for Home Care and Residential Respite Care Form (SA462)
Use this form and guide to test your eligibility to receive financial hardship assistance with your fees and charges in Home Care, or Residential Respite Care - this is assistance for the Basic Daily Care Fee.
10 July 2019
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New aged care means assessment forms:
The Department of Human Services (DHS) has released the new Aged Care Calculation of your cost of care (SA486) digital form. Your clients can fill it in online, print and sign it and send it to DHS with their supporting documents. The digital form uses dynamic questions tailored to the customers’ individual circumstances.
For clients who would prefer to use our simplified paper forms, they are as follows:
- Home Care Package Calculation of your cost of care (SA456)
- Residential Aged Care Calculation of your cost of care (SA457)
- Residential Aged Care Property details for Centrelink and DVA customers (SA485)
Customers entering Residential Care don’t need to fill in a form if they:
- get a means tested income support payment, and
- don’t own their own home.
It is important to make sure their income and assets are up to date when they enter into care to ensure their assessment can be completed automatically. They can do this by accessing their Centrelink online account or by calling Centrelink on 132 300or DVA on 1800 555 254.
Department of Health
26 August 2019
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Can I withdraw from or cancel the Resident Agreement?
If you change your mind and want to withdraw from the Resident Agreement within 14 days of signing, you need to let your aged care home know straight away, in writing. You will still need to pay your care fees and charges for the care you have received during the 14 days. If you have made any other payments to your provider during that time, you are entitled to a refund.
Can I change the terms of the Resident Agreement?
Changes can only be made to your Agreement if both you and your aged care home agree. If you wish to end your Agreement, you will have to give the home notice of your intention to do so, preferably in writing.
Refunding deposit balances
The refundable deposit balance must be refunded if the care recipient dies or ceases to be provided with residential care or flexible care. The refund must be made in the way specified in the Fees and Payments Principles.
There are time limits for refunds of refundable deposits. If the care recipient dies, the refund must be paid within 14 days of the approved provider being shown probate or letters of administration. If the care recipient is moving to another service, the refundable deposit must be paid:
- if more than 14 days notice of the move was given, on the date the person ceases being provided care,
- if less than 14 days notice of the move was given, 14 days after the notice was given, or
- if no notice was given, 14 days after the person ceased being provided care.
In any other case, the refundable deposit is to be paid within 14 days of the care recipient ceasing to be provided with residential care or flexible care.
It is possible to delay refunds to secure re-entry (see section 52P-4, Aged Care Act).
Act reference: Aged Care Act 1997 section 52P-1, section 52P-4
Payment of interest
Under the Act, providers have a core responsibility to repay refundable deposits and accommodation bonds as, and when, they fall due.
Paying interest
Approved providers pay interest to residents at two different rates. Interest must be paid to the resident on the same day that the refundable deposit balance, accommodation bond balance or entry contribution is refunded (see section 52P-3, Aged Care Act, and Division 1, Part 7, Fees and Payments Principles).
Under the Act, providers have a core responsibility to repay refundable deposits and accommodation bonds as, and when, they fall due.
Providers pay interest with respect to refundable deposits and accommodation bonds:
- at the base interest rate (BIR) for refundable deposit balances and accommodation bond balances, whichever of the following periods comes first:
- between the day after the resident dies or leaves the approved provider's service and the date the refundable deposit balance or accommodation bond balance is refunded, or
- between the day after the resident dies or leaves the approved provider's service and the end of the legislated timeframe for refund of the refundable deposit balance or accommodation bond balance,
- at the maximum permissible interest rate (MPIR) between the end of the legislated timeframe for refund of the refundable deposit balance or accommodation bond balance is actually repaid. Note that any repayment of refundable deposits or accommodation bonds after the legislative timeframe may be subject to enforcement action (see Division 1, Fees and Payments Principles).
Providers pay interest with respect to entry contributions:
- at the MPIR for entry contributions refunded from the day after the refund date (in accordance with the formal agreement) and ending on the day the entry contribution balance is refunded (see Division 2, Fees and Payments Principles).
Approved providers are required to refund refundable deposit balances and accommodation bond balances as and when they fall due. Failure to refund a refundable deposit balance or accommodation bond balance as and when it falls due constitutes non-compliance with the Act, and sanctions may be imposed. Non-compliance with this requirement must be disclosed to the department through the Annual Prudential Compliance Statement and to residents, prospective residents and their representatives on request. Non-compliance with this requirement may also be considered where the department assesses the on-going suitability of a person or approved provider to provide aged care.
Act reference: Aged Care Act 1997 section 52P-3
Fees and Payments Principles 2014 (No.2) Part 7 Division 1, Part 7 Division 2
Base interest rate
The BIR is not payable for the day a resident leaves a service, but for each day after the resident has departed the service until the refundable deposit balance or accommodation bond balance is actually refunded or the legislated timeframe expires, whichever is earlier. The BIR used in calculating interest is the BIR applicable on the day after the resident's departure or, if the person has died, the day after the approved provider is shown a copy of probate or letters of administration.
The interest payable at the BIR rate is calculated by:
- multiplying the BIR by the refundable deposit balance or accommodation bond balance and the number of days for which interest is payable, then
- dividing the above amount by 365 (see section 69, Fees and Payments Principles).
Maximum permissible interest rate
The rate of MPIR used in calculating interest is the MPIR applicable on the day after the end of the legislated timeframe for the refund of the refundable deposit balance or accommodation bond i.e., the day that the provider becomes non-compliant with its bond refund responsibilities (see section 69, Fees and Payments Principles).
The interest rate remains fixed at this rate until the refundable deposit balance or accommodation bond is refunded.
If the provider refunds the refundable deposit or accommodation bond after the legislated timeframe for refund has expired, the interest payable is calculated by:
- multiplying the MPIR by the refundable deposit balance or accommodation bond balance and the number of days for which interest is payable; then
- dividing the above amount by 365.
If the provider refunds the refundable deposit balance or accommodation bond balance after the legislated timeframe for refund has expired, the interest payable is the sum of:
- BIR for the period within the legislated timeframe, and
- MPIR for the period commencing on the day after the refundable deposit balance or accommodation bond balance should have been refunded and finishing on the day the refundable deposit balance or accommodation bond balance is actually refunded (see section 69, Fees and Payments Principles).
When the interest is payable
Approved providers must pay interest on the refundable deposit balance or accommodation bond balance or entry contribution balance on the day on which the provider refunds the balance to the care recipient (see section 68 and section 73, Fees and Payments Principles).
Act reference: Fees and Payments Principles section 68, section 73
Accrual of interest - resident gives approved provider more than 14 days notice of moving to another service
If the resident gives more than 14 days notice of moving to another service, then the refundable deposit balance or accommodation bond balance is due to be refunded on the day that the resident leaves the service. If the approved provider refunds the refundable deposit balance or accommodation bond balance on the day the resident leaves the service, then they will not have to pay any interest. If the approved provider does not refund the refundable deposit balance or accommodation bond balance by the time the resident leaves the service, then the approved provider must pay the interest calculated at the MPIR for the period starting the day after the resident leaves the service, and ending on the day the refundable deposit balance or accommodation bond balance is actually refunded.
Example: On 1 August 2014, John told Scott's Aged Care Service that he would move to Andy's Aged Care Service on 16 August 2014. He moves on 16 August 2014. If Scott's Aged Care Service gave the accommodation bond balance to John on:
- 16 August 2014, then no interest would be payable,
- 25 August 2014, then MPIR is payable for the period 17-25 August 2014 - i.e. from the day after John left the service until the refundable deposit balance is refunded.
Accrual of interest - resident gives less than 14 days notice of moving to another service
If the resident provides notice within 14 days before leaving the service, then the refundable deposit balance or accommodation bond balance must be refunded within 14 days after the day on which notice was given. If the refundable deposit balance or accommodation bond balance is refunded within 14 days, then BIR is payable from the day after the resident leaves the service until the end of 14 days after the resident provided notice or until the refundable deposit balance or accommodation bond balance is paid.
If the approved provider does not refund the refundable deposit balance or accommodation bond balance within 14 days of when the notice was given, then the approved provider must pay the MPIR for the period commencing on the day after 14 days notice was given and ending on the day the refundable deposit balance accommodation bond balance is actually refunded.
Example: On 10 August 2014, Fred told Georgie's Aged Care Service that he was moving to Sunset Aged Care Service on 15 August 2014. He moves on 15 August 2014. If Georgie's Aged Care Service gave the accommodation bond balance to Fred on:
- 15 August 2014, then no interest is payable,
- 18 August 2014, then BIR is payable for 3 days,
- 28 August 2014, then BIR is payable for the period 16-24 August 2014 and MPIR is payable for the period 25-28 August 2014.
Accrual of interest - resident leaves service to move to another service without giving any notice (applicable since 1 July 2006)
The refundable deposit balance or accommodation bond balance must be refunded within 14 days of the day after the resident leaves the service. If the refundable deposit balance or accommodation bond balance is refunded within the 14 days, then the approved provider pays BIR for the period commencing the day after the resident left the service and finishing on the day the approved provider actually refunded the refundable deposit balance or accommodation bond balance. If the approved provider does not refund the refundable deposit balance or accommodation bond balance within the 14 day period, then the approved provider pays BIR for the period from the day after the resident left the service to the expiration of 14 days and MPIR for the period commencing on the day after the refundable deposit balance or accommodation bond balance should have been refunded and finishing on the day the refundable deposit balance or accommodation bond balance is actually refunded.
Example: Bob left Rosie's Aged Care Service on 10 July 2014 to move to another service and did not provide any notice. If the accommodation bond balance was refunded on:
- 15 July 2014, then BIR is payable from 11 July 2014 until the accommodation bond balance was actually refunded on 15 July 2014.
- 28 July 2014, then BIR is payable for the period 11-24 July 2014 and MPIR is payable for the period 25-28 July 2014.
Accrual of interest - resident dies
BIR begins to accrue from the day after the day on which the resident dies. The rate of BIR is the BIR applicable on the day after probate or letters of administration are shown to the provider. If the approved provider refunds the refundable deposit balance or accommodation bond balance before the end of 14 days after the approved provider has been shown probate or letters of administration, then the approved provider pays BIR for the period commencing on the day after the resident died and finishing on the day the refundable deposit balance or accommodation bond balance is actually refunded. No MPIR is payable because the approved provider has refunded the refundable deposit balance or accommodation bond balance within the legislated timeframe.
If the approved provider does not refund the refundable deposit balance or accommodation bond balance within 14 days after being shown probate or letters of administration, then the approved provider must pay:
- BIR for the period from the day after the resident died to the end of 14 days after being shown probate or letters of administration
- MPIR for the period commencing on the day after the refundable deposit balance or accommodation bond balance should have been refunded and finishing on the day the refundable deposit balance or accommodation bond balance is actually refunded.
An approved provider can also decide to refund an a refundable deposit balance or accommodation bond balance before being shown probate or letters of administration.
Example: Paula died on 5 July 2014 and probate was shown to the approved provider on 20 August 2014. The accommodation bond balance was due to be refunded by 3 September 2014, 14 days after probate was shown.
- If the approved provider refunds the accommodation bond balance on 2 September 2014, then BIR is payable for the period 6 July-2 September 2014, at the BIR rate current at 21 August 2014.
- If the approved provider refunds the accommodation bond balance on 10 September 2014, BIR is payable for the period 6 July-3 September 2014 and MPIR is payable 4-10 September 2014.
Act reference: Aged Care Act 1997 section 52P-3
Fees and Payments Principles 2014 (No.2) section 68, section 69, section 73
Residential and Accommodation Agreements:
What if I need help understanding the agreements?
Since the Resident Agreement and Accommodation Agreement are legally binding documents, it is important you understand everything in the document before you sign it. If you have any questions, you should ask your new aged care home. It is their responsibility to make sure the agreements offered to you are clear.
If you like, you can ask your family, friends, carer or a legal practitioner to help you understand the terms of your agreements. The proposed agreements may not automatically include all the things that you think are important, so it is a good idea to check:
Need more help? Finding a financial planner:
Financial planners may be able to help with retirement planning, wealth management, savings planning, superannuation, banking and portfolio administration. They may also give advice on managed funds, and other financial products available in the marketplace.
Selecting the right financial planner for your situation is essential. You should choose a licensed financial planner who can provide the services you need. Your financial planner should also be able to provide you with a Financial Services Guide.
You can check whether a company or a financial planner is licensed by searching the Australian Financial Services Authorised Representatives Register on the Australian Securities and Investments Commission website.
You can also search for financial planners in your area on the Financial Planning Association of Australia website. This website provides the contact details for all licensed financial planners in the country.
MoneySmart:
The Australian Securities and Investments Commission also runs the MoneySmart website which helps people make smart choices about their personal finances. MoneySmart has lots of tools and information to help people with decisions about issues such as retirement planning, aged care accommodation and financial products such as reverse mortgages, see:
- retirement income planning (information and calculator)
- reverse mortgages (information and calculator)
- over 55's and your home
- over 55's and your health
- how to complain.
If you are having language difficulties because the agreements are not written in your preferred language, you can contact the Australian Government Translating and Interpreting Service (TIS) on 131 450. TIS covers more than 100 languages and is available 24 hours a day, 7 days a week, for the cost of a local call.
Wanting Financial advice?
You may want to consult with a financial adviser about your finances. There are various Click here for Government services and resources that can help you obtain appropriate financial advice. It’s a good idea to do some research to see what options work best for you. You can also use Centrelink's free Financial Information Service on 132 300.
Facing Financial Hardship?
If you believe you would face financial hardship in paying the required fees and payments, you can ask to be considered for financial hardship assistance. Each case is considered on an individual basis.
Depending on your personal situation, you may apply for financial assistance with:
- your basic daily fees and means-tested care fees and/or
- your accommodation payment
Assessment of financial hardship assistance claims
To determine if your aged care costs would cause you financial hardship, the Department of Human Services (DHS) will consider your:
- assets
- income, and
- verified expenses
You can apply for financial hardship assistance for your permanent residential aged care fees and charges, please use a Claim for Financial hardship assistance – Residential Aged Care form (SA461).
https://www.humanservices.gov.au/individuals/forms/sa461
10 July 2019
What are unrealisable assets?
If you have more than $34,206.90 in assets, you can apply for an asset to be declared as unrealisable. An asset is considered unrealisable if you cannot sell it or borrow against it.
More information on unrealisable assets will be available when you apply for financial hardship assistance through the Department of Human Services.
The following assets may be considered as unrealisable:
- a house that has been on the market for 6 months or more
- jointly owned property
- gifting - the decision to gift was made when the person was incapacitated or was made by a Power of Attorney
- frozen assets.
- rented properties
- private trusts and private companies.
If you are applying for financial hardship assistance with your fees and charges in Home Care, or Residential Respite Care you need Form SA462.
https://www.humanservices.gov.au/individuals/forms/sa462
13 February 2019
Use this form and guide to test your eligibility to receive financial hardship assistance with your fees and charges in Home Care, or Residential Respite Care - this is assistance for the Basic Daily Care Fee.
or for more information on fees and charges or financial assistance, call My Aged Care on 1800 200 422 or visit myagedcare.gov.au
What If I am not able to sign the agreements?
If you understand your agreement and want to sign it but are physically unable to, you can ask someone with the legal authority to sign on your behalf, such as someone who holds power of attorney for you.
Rights and Responsibilities
No matter which aged care home you move into, your rights and responsibilities will be the same as those of every other resident. To make sure your rights and responsibilities are protected, there is legislation that all aged care homes funded by the Australian Government must follow. The Charger of Residents' Rights and Responsibilities will be displayed in your aged care home, or you can ask your home for a copy when they offer you your Resident Agreement.
For additional information, go to www.myagedcare.gov.au This information is for your general information and use only, and is not intended for any other purpose.
1 July 2021
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