The Commonwealth Government introduced provisions, on 1 July 2005, which have exempted lump sum accommodation bonds paid to a residential care home, from Social Security (Centrelink) and Department of Veterans Affairs (DVA) assets tests.

This means that, from 1 July 2005, amounts paid as accommodation bonds to residential care homes will not be treated as an 'asset' when a person is being assessed for a pension under the Centrelink or DVA assets test.

The bond will remain exempt until refunded to the person when they leave the home.

Renting the family home

Special provisions apply to residents who pay all or part of their bond by installments (periodic payments) or if they are paying an accommodation charge.They are able to rent out their former home without the value of the home or the rental income affecting their pension. Contact Centrelink 13 22 00 for more information.

It is essential that independent financial advice be obtained when deciding:

• to keep the family home, or
• pay the accommodation bond by periodic payment, or
• pay the bond by part lump sum and periodic payment

Transferring bonds

Residents have the option of transferring a bond when they transfer to high-level care.