Hi there. We understand this must be a difficult time. There are national laws that regulate the payment of accommodation bonds to aged care service providers. These laws are set out in the Aged Care Act 1997 (Cth) (and related legislation) and all providers must comply with these laws.

An aged care service provider is permitted to deduct monthly amounts (known as ‘retention amounts’) from an accommodation bond for up to five years. The balance of the bond must be refunded when the accommodation period ends. If a person leaves the accommodation for another facility (such as another aged care home or palliative care), the bond must be refunded as follows:

(a) if more than 14 days’ notice is given, the bond must be refunded on the day the person leaves the accommodation;
(b) if less than 14 days’ notice is given, the bond must be refunded within 14 days of giving notice;
(c) if no notice of leaving is given, the bond must be refunded within 14 days of the person leaving.

If the person passes away during the accommodation period, the provider must refund the bond within 14 days of receiving evidence of probate or letters of administration. These are the official documents required to administer the estate of a deceased person.

While an aged care service provider may decide to refund the bond quicker than these time periods, they are not required to do so by law. In your situation, it appears that you gave less than 14 days’ notice, which means the bond must be refunded within 14 days of the provider receiving notice. The provider can lawfully refund the bond at any time up until the 14th day after notice was received, but no later than this date.

If you are dissatisfied with the service provider’s conduct, you should speak to the manager of the aged care home. Alternatively, you can lodge a formal complaint with the Aged Care Complaints Commissioner (www.agedcarecomplaints.gov.au). The Commissioner can offer dispute resolution services and, if necessary, investigate the matter.

Suggested way forward

You should consider contacting the Aged Care Complaints Commissioner for more information about resolving the dispute and/or lodging a formal complaint. You may also want to consider speaking to a lawyer who can properly assess your family’s situation and advise you of the best course of action. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.