1.1.A.18 Accommodation charge

Usage

This definition applies to all payments.

Definition

This term is defined in the Aged Care Act 1997. An accommodation charge is a periodic payment that may be paid on entry to a service where nursing home level care is provided. These charges are levied for entry to these services after 6 November 1997, if the resident can afford to pay.

The charge is determined by the level of the resident's assets, and is applied by the care provider. The charge:

• is calculated on a daily basis, and can be levied:
  • for a maximum of 5 years if the person entered a care situation between 5 November 1997 and 30 June 2004, OR
  • indefinitely if the person entered a care situation ON or AFTER 1 July 2004,
• is limited to a maximum daily amount prescribed in the Aged Care Act 1997,
• is not payable if the resident has assets less than 2.5 times the single pension rate, not including PhA,
• may be deferred or paid from the estate, in which case the provider is entitled to charge interest at double the lowest pension deeming rate, and
• is distinct from daily care fees (1.1.D.13).

Act reference: Aged Care Act 1997

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Last reviewed: 5 May 2008