Residential care fee administration

Page last updated: 17 November 2017

Resident agreement

Providers must discuss and agree upon any fees with the resident before they enter the aged care home. The maximum fees payable must be recorded in the resident agreement

Payment frequency of fees

Providers cannot ask residents to pay any fees before they enter the aged care home, unless they are on pre-entry leave, then the basic daily fee may be charged.

Once the resident agreement has been entered into, the provider can ask the resident to pay fees up to one month in advance. Any fees paid in advance must be refunded to the resident if they leave the aged care home, or move to another aged care home.

Refund of fees

Resident fees that are refundable are fees that have been overpaid by the resident and any fees paid in advance of the date from which the services cease.  

Interest on unpaid amounts

The resident agreement must include all matters negotiated between the aged care provider and the resident. This includes the rate of interest charged for late payment of fees or a method for working out the rate.

Where interest can be charged, interest rates must not exceed the maximum permissible interest rate (MPIR) that is set by Government (where a provider is deducting amounts owing under a resident agreement or an extra service agreement from an accommodation bond balance that has fallen due).

Interest can be charged, with further interest able to be charged, on any unpaid interest, if this is specified in the resident agreement or the extra service agreement. 

Non-payment of fees

If a resident has not paid any agreed fee to the aged care provider within 42 days after the day it is payable, the provider can ask the resident to leave the aged care home.

The requirements for asking a resident to leave an aged care home are specified in the User Rights Principles 2014.

Contacts

For enquiries about aged care fees, charges and payments, email enquiries@health.gov.au.

Other information