Figure 1: Change in accommodation payment arrangements Pre–1 July 2014 At 30 June 2014 From 1 July 2014 Non–supported residents 174,000 permanent residents: Non–supported residents Paid by Accommodation Bonds 104,000 (approx 60%) All incoming residents pay under the same Residents enter either Low care and accommodation payment arrangements. care 73,000 (approx 42%) Bond payers Providers set maximum accommodation price Price capped at total assets of resident less $15.4 billion (approx) bond pool Prices over $550,000 ($99.90 per day) to be agreed minimum asset amount. by Pricing Commissioner. The average accommodation bond Can be paid by lump sum, periodic payment, agreed with a new resident in Provider and resident agree accommodation price or combination - method agreed before entry. 2013-14 was $296,404 at entry (not related to residents assets). A retention amount of up to $331 per month 47,000 (approx 27%) Resident has 28 days to decide method of for up to five years residents paying by payment. Options are: Paid by Accommodation Charge accommodation charge Refundable Accommodation Deposit (RAD); Residents enter non–extra service high care Total (supported & non–supported) Daily Accommodation Payment (DAP); or Periodic payment only turn–over of around 5,000 residents A combination of DAP/RAD (with resident Price set by regulation capped at $34.20 per per month with around 3,000 per determining the proportional split). day month being non–supported residents. No regulated retention however residents paying by combination can agree to a non–refundable DAP Supported residents component being drawn from RAD. The asset test restricted the amount that a supported resident could be asked to pay with the Government Supported residents topping this up with an accommodation supplement. All incoming supported residents pay under the The accommodation payment methods were same accommodation contribution arrangements. accommodation bonds for partially-supported people The provider receives the same amount for all entering low care and an accommodation charge for residents when accommodation contribution and those partially-supported people entering high care. accommodation supplement are added together. Government contribution capped at $34.20 per day. Providers of new or significantly refurbished facilities are eligible for total payment for accommodation at the same level as the higher accommodation supplement ($53.04 per day).
Figure 1: Change in accommodation payment arrangements Pre–1 July 2014 At 30 June 2014 From 1 July 2014 Non–supported residents Paid by Accommodation Bonds Residents enter either Low care and care Price capped at total assets of resident less minimum asset amount. Can be paid by lump sum, periodic payment, or combination - method agreed before entry. A retention amount of up to $331 per month for up to five years Paid by Accommodation Charge Residents enter non–extra service high care Periodic payment only Price set by regulation capped at $34.20 per day Supported residents The asset test restricted the amount that a supported resident could be asked to pay with the Government topping this up with an accommodation supplement. The accommodation payment methods were accommodation bonds for partially-supported people entering low care and an accommodation charge for those partially-supported people entering high care. Government contribution capped at $34.20 per day. 174,000 permanent residents: 104,000 (approx 60%) 73,000 (approx 42%) Bond payers $15.4 billion (approx) bond pool The average accommodation bond agreed with a new resident in 2013-14 was $296,404 47,000 (approx 27%) residents paying by accommodation charge Total (supported & non–supported) turn–over of around 5,000 residents per month with around 3,000 per month being non–supported residents. Non–supported residents All incoming residents pay under the same accommodation payment arrangements. Providers set maximum accommodation price Prices over $550,000 ($99.90 per day) to be agreed by Pricing Commissioner. Provider and resident agree accommodation price at entry (not related to residents assets). Resident has 28 days to decide method of payment. Options are: Refundable Accommodation Deposit (RAD); Daily Accommodation Payment (DAP); or A combination of DAP/RAD (with resident determining the proportional split). No regulated retention however residents paying by combination can agree to a non–refundable DAP component being drawn from RAD. Supported residents All incoming supported residents pay under the same accommodation contribution arrangements. The provider receives the same amount for all residents when accommodation contribution and accommodation supplement are added together. Providers of new or significantly refurbished facilities are eligible for total payment for accommodation at the same level as the higher accommodation supplement ($53.04 per day).
acfa_november_report_v12.docx