BONDS
Twilight Aged Care accommodation bonds information for residents & carers
Residents who enter permanent care at a Twilight Aged Care facility with an Aged Care Assessment Team approval for low care (hostel level care) can be charged an accommodation bond if they are eligible to pay one.
What is an Accommodation Bond?
An accommodation bond is an amount of money paid or payable by a low level care resident for entry to residential care. The balance of the accommodation bond (after retentions have been drawn down) will be refunded to the resident or their estate on termination of the agreement for residential services.
How is the accommodation bond amount determined?
The amount of the accommodation bond will be determined following an assessment by Twilight Aged Care of the assets that a resident owns. The amount of the accommodation bond will be advised when an offer of a place in a Twilight Aged Care facility is made to the prospective resident.
It is often in the best interests of the residents to pay a large accommodation bond because accommodation bonds are exempted from asset tests. For example, a person on a pension who sells a property or other asset, may end up with a considerable amount of money that could be means tested. This could result in the reduction or loss of a pension, or an additional income tested daily fee may become payable on the basis of income received from the funds invested after the sale of the property. Careful financial planning can assist the resident and Twilight Aged Care.
Does Twilight Aged Care keep any money from the accommodation bond?
Twilight Aged Care will draw down a retention amount, calculated on a monthly basis for up to five years, or for the duration of residency if less than five years. The retention amounts are determined by the Australian Government annually and are usually indexed to the Consumer Price Index. The retention amount will be specified in the Resident Agreement for Accommodation and is set at the time of entry and will not change for the duration of residency in a Twilight House facility.
Are there minimum assets that a resident must be left with?
Residents cannot be charged an accommodation bond if it would leave them with less than the permissible asset value of 2.5 times the annual pension. A concessional resident will not be asked to pay an accommodation bond because they have assets less than this value.
How long do I have to pay the accommodation bond?
Accommodation Bonds can be paid up to six months from the date of entry. Interest is calculated from the date of entry for unpaid bonds and is invoiced monthly.
What is the rate of interest?
Interest rates for unpaid bonds are determined by the Australian Government, and are based on the Treasury Yield Note. The current rate of interest will be advised in the letter of offer for accommodation.
What are my choices for paying an accommodation bond?
Accommodation bonds can be paid as lump sum amounts, by periodic payment or a combination of both. Where bonds are paid by periodic payment the amount and frequency of the payment will be advised in the offer of care. Accommodation bonds paid by periodic payment are non-refundable.
When are accommodation bonds returned?
Twilight Aged Care hereby gives you a guarantee that it will refund the accommodation bond balance:-
(a) if you die - within fourteen (14) days after the day on which on which Twilight Aged Care is shown the probate of your will or letters of administration of your estate; or
(b) if you enter another residential care service:-
(i) if you have notified Twilight Aged Care of the move more than fourteen (14) days before the day on which Twilight Aged Care ceases providing care to you - on the date on which Twilight Aged Care ceases providing that care; or
(ii) if you notified Twilight Aged Care within fourteen (14) days before the day on which Twilight Aged Care ceases providing that care - within fourteen (14) days after the day on which the notice is given; or
(iii) if you do not notify Twilight Aged Care before the day on which Twilight Aged Care ceases to provide that care - within fourteen (14) days after the day on which Twilight Aged Care ceases providing that care; or
(c) in any other case within fourteen (14) days after the day on which the event referred to in clause D8.01 (b) or (c), whichever is applicable, happens.
The Act provides that Twilight Aged Care will, in addition to the refund of the accommodation bond balance, pay an amount representing interest on the accommodation bond balance in the circumstances specified in the User Rights Principles made under the Act.
How do I know Twilight Aged Care is managing my bond money responsibly?
Twilight Aged Care will provide each resident and/or their POA with an externally audited financial report and a statement of Prudential Compliance each year. Twilight Aged Care will, on your request, provide you with an audited copy of the Company accounts.
How can I get more information?
Contact the Chief Executive Officer on: (02) 9414 4400
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