Refundable Deposit Balance and Accommodation Bond Balance Refund Interest Rates
Approved providers are required to pay interest on a refundable deposit balance or accommodation bond balance for the period from the day after the resident leaves the care service until the refundable deposit balance or accommodation bond balance is refunded. The requirement to pay interest also applies to approved providers holding entry contributions in the event that an entry contribution balance is refunded after the time specified in the Formal Agreement.
- Interest rates
- The Base Interest Rate
- The Maximum Permissible Interest Rate
- Legislated timeframes for refunding refundable deposit balances and accommodation bond balances
- More information
Approved providers are required to pay interest at two different rates:
- At the Base Interest Rate (BIR) for the period between a resident’s departure and the completion of the legislated timeframe for refunding the refundable deposit balance or accommodation bond balance. It is not payable for the day of departure, but for each day after the resident has departed the service until the refundable deposit balance or accommodation bond balance is refunded or the legislated timeframe expires.
- At the Maximum Permissible Interest Rate (MPIR) for the period after the end of the legislated timeframe (or, for entry contributions, the time set out in the Formal Agreement) until the refundable deposit balance or accommodation bond balance or entry contribution balance is refunded.
The BIR is the interest rate calculated in accordance with Section 4 of the Fees and Payments Principles 2014 (No. 2). The BIR takes effect on the first day of the month following the day when the below threshold rate is determined. The below threshold rate is the rate determined under subsection 1082(1) of the Social Security Act 1991.
The BIR to be used in calculating interest is the rate applicable on the day after the resident's departure or, if the person has died, the rate applicable on the day after the approved provider is shown a copy of probate or letters of administration.
The MPIR is the interest rate calculated in accordance with Section 6 of the Fees and Payments Principles 2014 (No. 2).
The MPIR to be used in calculating interest is the MPIR applicable on the day after the resident should have been refunded their refundable deposit balance, accommodation bond balance or entry contribution balance in accordance with the legislated timeframes or Formal Agreement.
The interest rate remains fixed at this rate until the refundable deposit or accommodation bond or entry contribution is refunded.
The formulae for working out amounts of interest on refundable deposit balances, accommodation bond balances and entry contributions are set out in Section 6 of the Fees and Payments Principles 2014 (No. 2).
Current and previous refundable deposit balance and accommodation bond balance refund interest rates
|For residents leaving care in the period||Base Interest Rate||Maximum Permissible Interest Rate|
|1/10/2017 to 31/12/2017||3.75%||5.70%|
|1/07/2017 to 30/09/2017||3.75%||5.73%|
|1/04/2017 to 30/06/2017||3.75%||5.78%|
|1/01/2017 to 31/03/2017||3.75%||5.76%|
|1/10/2016 to 31/12/2016||3.75%||5.76%|
|1/7/2016 to 30/09/2016||3.75%||6.01%|
|1/04/2016 to 30/06/2016||3.75%||6.28%|
|1/01/2016 to 31/03/2016||3.75%||6.22%|
|1/10/2015 to 31/12/2015||3.75%||6.14%|
|1/07/2015 to 30/09/2015||3.75%||6.15%|
|1/04/2015 to 30/06/2015||3.75%||6.36%|
|1/01/2015 to 31/03/2015||4%||6.75%|
|1/10/2014 to 31/12/2014||4%||6.63%|
|1/07/2014 to 30/09/2014||4%||6.69%|
|1/04/2014 to 30/06/2014||4%||6.63%|
|1/01/2014 to 31/03/2014||4%||6.59%|
|1/12/2013 to 31/12/2013||4%||6.60%|
|1/10/2013 to 30/11/2013||4.5%||6.60%|
|1/07/2013 to 30/09/2013||4.5%||6.82%|
|1/04/2013 to 30/06/2013||4.5%||6.95%|
|1/01/2013 to 31/03/2013||5%||7.24%|
|1/10/2012 to 31/12/2012||5%||7.62%|
|1/07/2012 to 30/09/2012||5%||7.66%|
|1/04/2012 to 30/06/2012||5%||8.37%|
|1/01/2012 to 31/03/2012||5%||8.62%|
|1/10/2011 to 31/12/2011||5%||8.86%|
|1/07/2011 to 30/09/2011||5%||9.00%|
|1/04/2011 to 30/06/2011||5%||8.92%|
|1/01/2011 to 31/03/2011||5%||9.02%|
|1/10/2010 to 31/12/2010||5%||8.74%|
|1/07/2010 to 30/09/2010||5%||8.80%|
|1/04/2010 to 30/06/2010||5%||8.16%|
|1/01/2010 to 31/03/2010||4%||7.95%|
|1/10/2009 to 31/12/2009||4%||7.30%|
|1/07/2009 to 30/09/2009||4%||7.13%|
|1/04/2009 to 30/06/2009||4%||7.16%|
|1/01/2009 to 31/03/2009||5%||8.76%|
|17/11/2008 to 31/12/2008||5%||11.31%|
|1/10/2008 to 16/11/2008||6%||11.31%|
|1/07/2008 to 30/09/2008||6%||11.75%|
|1/04/2008 to 30/06/2008||6%||11.69%|
|1/01/2008 to 31/03/2008||5.5%||11.15%|
|1/10/2007 to 31/12/2007||5.5%||10.75%|
|1/07/2007 to 30/09/2007||5.5%||10.37%|
|1/04/2007 to 30/06/2007||5.5%||10.37%|
|1/01/2007 to 31/03/2007||5%||10.37%|
|1/10/2006 to 31/12/2006||5%||10.19%|
|1/07/2006 to 30/09/2006||5%||9.87%|
Working out the MPIR in a leap year
The MPIR applicable on a given day is worked out using the number of calendar days in that year. If you are calculating the MPIR at any time in a leap year (i.e. 2016) in accordance with section 6 of the Fees and Payments Principles 2014 (No. 2), you should use 366 days in your calculation.
Approved providers are required to refund refundable deposit balances or accommodation bond balances in accordance with the following timeframes:
- if a resident is moving to another service and the resident:
- gives more than 14 days notice, the provider must refund the refundable deposit balance or accommodation bond balance on the day the resident leaves the service;
- gives notice within 14 days of departing, the provider must refund the refundable deposit balance or accommodation bond balance within 14 days of the resident giving notice
- gives no notice before departing, the provider must refund the refundable deposit balance or accommodation bond balance within 14 days after the resident leaves;
- if a resident leaves the service to return home, the provider must refund the refundable deposit balance or accommodation bond balance within 14 days after the resident leaves;
- if a resident dies, the provider must refund the refundable deposit balance or accommodation bond balance within 14 days after being shown probate or letters of administration;
- if the service ceases to be certified, the refundable deposit balance or accommodation bond balance must be refunded within 14 days of the date the service ceased to be certified.
If a resident left the service prior to 31 May 2006 and the refund is made after that date, then the old timeframes continue to apply as set out in Sections 23.79B and 23.79C of the User Rights Principles 1997.
However, BIR is payable from 2 July 2006 and MPIR is payable from the day after the refund was due.
Entry contributions should still be refunded in accordance with the Formal Agreement.
- MyAgedCare website – Information for residents, prospective residents and their representatives
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