Accommodation Bond
Strengthened protection of residents’ accommodation bonds
The Government has announced new arrangements to strengthen protection of residents’ accommodation bonds.
In September 2005 new prudential arrangements were announced to strengthen protection of aged care residents’ accommodation bonds. New arrangements will improve the management of bonds by approved providers and increase the level of information available to residents. The new prudential arrangements will be complemented by a scheme to guarantee the payment of bond balances if a provider becomes bankrupt or insolvent.
On 28 March 2006, legislation was passed to give effect to these new arrangement. The Aged Care Amendment (2005 Measures No. 1) Act 2006, the Aged Care (Bond Security) Act 2006 and the Aged Care (Bond Security) Levy Act 2006 can be accessed through the Department’s website.
Minister’s press release
Approved Providers
To assist providers to fully understand the new scheme to protect accommodation bonds including the new legislation, a fact sheet has been produced.Provider Fact Sheet
From I July 2006, approved providers holding accommodation bonds and pre 1997 entry contributions will be required to meet new prudential standards. Guidelines to assist approved providers understand the new requirements will also be made available on the Department’s website. This material is expected to be available in late April.
Residents and their representatives
The new scheme will provide greater security over residents’ accommodation bonds. A fact sheet has been produced to inform residents and their representatives of how the new arrangements and legislation will provide this security.Residents’ fact sheet
Further information is available from the Aged Care Information Line on 1800 500 853.
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