Office of Aged Care Quality and Compliance (OACQC)
Protecting Residents’ Savings – arrangements for accommodation bonds
Aged care accommodation bonds changes from 1 October 2011.
From 1 October 2011, there are clearer and stronger arrangements to protect residents’ savings held in the form of accommodation bonds (bonds). The arrangements clarify the intended purpose for bonds as a source of capital for investment in aged care infrastructure. They also improve governance arrangements for bonds and provide greater transparency and accountability for bonds. This will improve consumer confidence in the aged care sector by assuring residents that their funds are being used for intended purposes and that their bond balances will be refunded when they fall due.
The arrangements:
- clarify the permitted uses of bonds
- introduce a two year transition period for approved providers to adjust and fully comply with the permitted uses
- introduce a new Governance Standard for approved providers holding bonds
- improve reporting and disclosure for greater transparency and consumer confidence
- introduce additional information gathering powers for monitoring compliance
- remove restrictions on the use of income from bonds, retention amounts and accommodation charges
- introduce criminal penalties for the misuse of bond funds.
These changes are part of the More Support for Older Australians in the National Health and Hospitals Network (2010–11 Budget Measure) and have been developed in close consultation with the aged care industry, consumer groups and the financial services sector.
More information
Information has been prepared to assist in understanding the new arrangements.Information sheets for approved providers
Protecting Residents’ Savings – information for approved providersDisclosure Standard – information for approved providers
Governance Standard – information for approved providers
More details for approved providers
Protecting Residents’ Savings – a guide to the arrangements for accommodation bonds from 1 October 2011Information sheets for residents
Information Sheet No. 16 – Accommodation Bonds for Residential Aged CareTop of page
