Cost of living in a residential care facility - Part 3
Updated: May 26
The Aged Care laws in Australia incorporating the Aged Care Act 1997 provide more detailed information in relation to each of the points mentioned above for residential care.
The second bullet point is ‘investing in financial products’. The permitted financial products (defined by section 764A of the Corporations Act 2001) are:
• deposits with an authorised deposit-taking institution (ADI) made available in the course of its banking business (e.g. deposits in bank accounts and term deposits)
• debentures, stocks, or bonds issued by the Commonwealth, states, or territories
• registered managed investment schemes, and
• unregistered managed investment schemes established for the purpose of investment in residential or flexible aged care
There are a number of things that a refundable deposit or accommodation bond must not be used for. This includes:
• routine repairs or maintenance such as painting, plumbing, electrical work, gardening, or vehicle leasing
• to cover the normal day-to-day costs of operating a service such as staff wages or the purchase of consumables
• routine replacement of furniture items such as wardrobes or lounges. It is expected that approved providers would use operational budgets to replace worn furniture.
This above is for information purposes only and should not be considered financial advice. You should discuss your personal circumstances with an expert before making any decisions.