30th June 2017
ACCOMMODATION PAYMENTS- INFORMATION FOR RESIDENTS AND CARERS
WHAT IS A REFUNDABLE ACCOMMODATION DEPOSIT?
A refundable accommodation payment is an amount of money paid or payable by a resident for entry to residential care. The balance of the refundable accommodation payment (after agreed deductions have been drawn down) will be refunded to the resident or their estate on termination of the agreement for residential services.
WHAT IS A DAILY ACCOMMODATION PAYMENT?
A daily accommodation payment is an amount calculated by converting the refundable deposit payment into a daily charge using the maximum permissible interest rate that applied at the time of admission. Under the previous accommodation bond rules, this was known as a periodic payment. The method of calculating the daily amount has not changed under the new rules.
HOW IS THE REFUNDABLE ACCOMMODATION PAYMENT AMOUNT DETERMINED?
The amount of the refundable accommodation payment is set for each type of accommodation that Abbeyfield Mortlake offers. Information on accommodation types, key features of the accommodation and the refundable accommodation deposit amount will be available to view or download from our website from May 2014.
The amount that a resident pays as a refundable accommodation payment is included in the new means tested care fee calculation. More information is available by contacting Abbeyfield Mortlake CEO on 03 5599 2901 or go to www.myagedcare.gov.au or phone myagedcare call center on 1800 200 422
DOES ABBEYFIELD MORTLAKE KEEP ANY MONEY FROM THE REFUNDABLE ACCOMMODATION PAYMENT?
Normally there will be no deductions from the capital value of the refundable accommodation payment while the resident is in care. Residents who choose a combination of RAD and DAP may elect to have the amount of the daily accommodation payment deducted from the capital balance of the refundable accommodation payment.
ARE THERE MINIMUM ASSETS THAT A RESIDENT MUST BE LEFT WITH?
Residents cannot be charged a refundable accommodation payment if it would leave them with less than the permissible asset value of 2.5 times the annual pension. A supported resident will not be asked to pay a refundable accommodation payment because they have assets less than this value.
HOW LONG DO I HAVE TO PAY THE REFUNDABLE ACCOMMODATION PAYMENT?
Refundable accommodation payments can be paid up to six months from the date of entry. Interest is calculated daily from the date of entry for unpaid RADs and is invoiced monthly. Residents may change their mind about their options for paying a RAD, DAP or combination up to 28 days after admission.
WHAT IS THE RATE OF INTEREST?
Interest rates for unpaid RADs are determined by the Australian Government, and are based on the Treasury Yield Note. The current rate of interest will be shown in the key features statement for each type of accommodation available.
WHAT ARE MY CHOICES FOR PAYING AN ACCOMMODATION PAYMENT?
Accommodation payments can be paid as lump sum amounts, by daily payment or a combination of both. Where accommodation payments are paid by a combination of RAD and DAP, the amount and frequency of the payment will be advised in the offer of care and is determined in conjunction with the resident. Amounts paid as daily accommodation payments are non-refundable.
WHEN ARE REFUNDABLE ACCOMMODATION PAYMENTS RETURNED?
As outlined in the Resident Agreement that we supply on admission, we guarantee repayment of the Refundable Accommodation Payment Balance in accordance with the following criteria.
The Refundable Accommodation Payment Balance will be refunded if:
The refundable accommodation payment balance will be refunded within the following time frames:
At the time the refundable accommodation payment balance is refunded, we must also pay to you interest on the outstanding refundable accommodation payment balance calculated at the Base Interest Rate for the period from the day after the occurrence of that event until the date on which the refundable accommodation payment balance is refunded in full.
If any of the events referred to above occur and the refundable accommodation payment balance is refunded to you after 14 days from the occurrence of that event, then, at the time the refundable accommodation payment balance is refunded, Abbeyfield Mortlake must:
HOW DO I KNOW IF ABBEYFIELD MORTLAKE IS MANAGING MY ACCOMMODATION PAYMENT MONEY RESPONSIBLY?
Since 1 October 2011 the Disclosure Standard contained within the User Rights Principles has required that residents paying accommodation payments must receive a statement that the approved provider will provide certain information within seven days of a request (refer section 23.42(1)(c) of the User Rights Principles).
Abbeyfield Society (Mortlake) Inc is the approved provider for Abbeyfield House Mortlake. Under the Aged Care Act 1997 (the Act), residents and prospective residents or their representatives are entitled to receive particular information from their approved provider on request.
This includes, in relation to the previous financial year:
Abbeyfield Mortlake must also provide:
Residents, prospective residents or their representatives may request any or all of the available information. Abbeyfield Mortlake must provide the information within seven days of the request, and the information must be correct at the time of the request.
HOW CAN I GET MORE INFORMATION?
Abbeyfield Mortlake Chief Executive Officer will be happy to help with any further queries you may have:
(03) 5599 2901