Aged Care Facilities and Nursing Homes are required to refund the balance of a resident’s Refundable Accommodation Deposit/Contribution or Accommodation Bond within set timeframes.
If the resident is moving to another facility and they:
• give more than 14 days’ notice, the provider must refund the RAC, RAD or Bond balance on the day the resident leaves;
• gives notice within 14 days of moving, the provider must refund the RAC, RAD or Bond balance within 14 days of receiving notice
• gives no notice before leaving, the provider must refund the RAC, RAD or Bond balance within 14 days of the resident leaving;

If the resident passes away, the provider must refund the RAC, RAD or Bond balance within 14 days after being shown probate or letters of administration.

The RAC, RAD or Bond balance is the amount the resident has paid less any deductions, which can include:
• Daily Accommodation Contributions or Payments (DAC or DAP)
• Extra or Additional Service Fees
• Basic Daily Fee
• Retention (Accommodation Bonds)
• Capital Replacement/Refurbishment Fees
• Any other fee or charge agreed between the resident and the operator

Unfortunately, we see this process held up all too often. If you have any questions, consulting with an Aged Care Expert is a great way to learn more about your best options. Get in touch with one of our Aged Experts for a discussion.

Author: Shaun Ganguly

Director and Financial Planner at Retirement Village Financial Advice and Aged Care Financial Planning, Shaun Ganguly specialises in complex Aged Care, Retirement Living, and Centrelink matters. He holds a Bachelor of Commerce (Finance & Economics), and is an FPA Accredited Aged Care Professional, Aged Care Guru, and Certified Financial Planner.

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