Payment of a bond may be one of the most frustrating and confusing parts of entering an aged care facility. YOURLifeChoices answers the most frequently asked questions.
Q. What happens to my bond if I choose to leave the hostel?
A. A hostel, which is otherwise known as a low-care facility, is within its rights to deduct a retention amount for each of the first five years you have resided there. A nursing home which charges a bond also has the right to deduct a retention amount. The balance of your bond is refunded to you or your estate.
Q. How much can the hostel retain?
A. The Federal Government determines the maximum monthly limits based on how much bond you paid but does not determine what the monthly amount will be. Currently, if you enter a facility after 1 July 2010 and your bond is at least $36,900, the maximum which can be retained is $307.50 each month, for a period of five years. It is important you clarify this amount at the beginning of your agreement.
Q. What if my hostel goes into liquidation?
A. The balance of any bond will be paid by the Federal Government who then have the right to receiver this amount from the provider.
Q. Will the bond affect my Age Pension?
A. The bond is exempt under both the income and asset tests.