What is an accommodation agreement?
The accommodation agreement outlines details of a resident’s room, costs and other accommodation conditions. It’s in addition to the resident agreement, but can be part of the same document.
What to include
An accommodation agreement must include the following details:
- the resident’s date of entry to care
- agreed room price
- the room features the room price entitles the resident to
- what residents will pay
- payment options
- any interest charged on late daily payments or contributions
- services that the room price entitles the resident to
- room changes, including voluntary and non-voluntary moves
- any amounts that are permitted to be deducted
- circumstances in which a refundable deposit must be refunded.
What residents will pay
For a general explanation of how accommodation costs are determined, available payment options and changes effective from 1 November 2025, refer to accommodation costs for residential aged care.
Accommodation payments
An accommodation agreement must include that a resident will pay an accommodation payment if:
- their means assessment on the day they enter care determines they can afford to pay accommodation costs equal to or more than the maximum accommodation supplement rate for that day
- they have ‘means not disclosed’ status.
Accommodation contributions
An accommodation agreement must include that a resident will pay an accommodation contribution if:
- their means assessment on the day they enter care determines they are unable to afford accommodation costs equal to or more than the maximum accommodation supplement rate for that day.
The agreement must state that the amount of accommodation contribution payable by the resident may change while they’re in care, depending on:
- changes to the accommodation supplement rate the provider is eligible for
- changes to the resident’s means assessment outcome.
Retention amounts
The accommodation agreement must state that if a resident pays a refundable deposit and RAD and RAC retention applies to them, retention amounts will be deducted from the balance within a set timeframe.
Learn about RAD and RAC retention.
DAP indexation
The accommodation agreement must state that DAPs will be indexed on 20 March and 20 September each year.
Learn about DAP indexation.
Payment options
An accommodation agreement must explain how a resident may pay for their accommodation (if payable). Residents can choose to pay by:
- refundable deposit (a lump sum)
- daily payments (a rental-style payment)
- a combination of the 2.
Providers are required to explain how a combination payment is to be calculated in the agreement.
Entering before 1 November 2025
For a resident who enters care before 1 November 2025, you must:
- agree on the room price in writing before entry
- enter into an accommodation agreement before or within 28 days of entry.
They must choose how they will pay for their accommodation costs within 28 days of entering care. If they choose to pay by a refundable deposit, they have 6 months to pay it. Daily payments will apply unless the full amount is paid upfront as a lump sum. Residents may pay or top up a lump sum amount at any time after they enter care.
Entering on or after 1 November 2025
For a resident who enters care on or after 1 November 2025, you must:
- agree on the room price in writing before entry
- enter into an accommodation agreement before entry.
Residents don’t need to choose a payment method for their accommodation costs within a set timeframe. They can pay or top up a lump sum at any time after they enter care. Daily payments apply until the full amount is paid.
How amounts are calculated
Accommodation payments
An accommodation agreement for a resident paying accommodation payments must explain how each payment option is calculated, including:
- a RAD
- a DAPs
- a combination of both.
It must also state that, if the resident requests it, the provider will deduct the DAPs from the RAD.
We recommend providers also include the maximum permissible interest rate (MPIR) that was current on the day the resident agreed to a room price.
Find out how to calculate accommodation payment amounts.
Accommodation contributions
An accommodation agreement for a resident paying accommodation contributions must explain how each contribution option is calculated, including:
- a RAC
- a DACs
- a combination of both.
It must also state that:
- their accommodation contribution will not exceed the amount they were assessed as being able to pay based on their means
- if the resident requests it, the provider will deduct the DAC from the RAC.
We recommend providers also include the MPIR that was current on the day the resident entered care. This may need to be included as an amendment to the agreement if the rate is not available at the time of entering into the agreement.
Find out how to calculate accommodation contribution amounts.
Refunding lump sums
An accommodation agreement must explain when a provider refunds a lump sum (RAD or RAC). This includes situations where:
- the resident transfers to another service
- the resident returns home
- the resident passes away, and their provider receives probate, letters of administration or other acceptable evidence
- the aged care home ceases to be certified.
Learn about refunding lump sums.
Preparing an agreement
A provider must discuss the accommodation agreement with a resident before they enter the aged care home.
The resident must understand and agree to the room price and conditions. The provider is responsible for making sure the resident understands everything in the agreement.
If needed, use the National Translating and Interpreting Service.
A resident can choose to agree without signing the agreement. If they choose not to sign, the provider must record the interactions and that they agreed as part of their record keeping responsibilities.
Providing an agreement
A provider must give a prospective resident a copy of their accommodation agreement before they enter care.
Entering into an agreement
Entering before 1 November 2025
If a resident is entering care before 1 November 2025, their provider must enter into an accommodation agreement with them.
- before they enter care, or
- within 28 days after they move in.
The provider can apply for an extension to the 28-day timeframe if a legal process begins during that period to appoint a legal representative for the resident.
In most cases, the extension is 7 days after the legal process ends. The provider can apply for a longer extension if needed.
Entering on or after 1 November 2025
If a resident is entering care on or after 1 November 2025, their provider must enter into an accommodation agreement with them before they enter care.
Reviewing and updating an agreement
A provider must review and update a resident’s accommodation agreement if:
- they move to a different room
- they request to deduct fees from their refundable deposit
- they ask their provider to update their agreement.
This should be part of the provider’s ongoing care discussions with their residents.
The provider must give a copy of the updated agreement to the resident as soon as possible after finalising it.