On 23 September 2011, the Minister for Mental Health and Ageing made the User Rights Amendment Principles 2011 (No.3) (the Principles) to:
- include a Governance Standard that requires aged care providers who hold bonds to have in place a governance system for bonds, including reporting on compliance with the Governance Standard; and
- expand the definition of the permitted uses of accommodation bonds.
The amendments support enhanced regulation of accommodation bonds introduced in the Aged Care Amendment Act 2011 by way of increased transparency and improved governance requirements. Accommodation bonds are in effect unsecured, interest-free loans paid by care recipients to approved providers, which must be used for ‘permitted uses’, and refunded upon the care recipient leaving the service (less permitted deductions). As they typically involve a substantial amount of money, consumer protection regulation applies to the charging and use of accommodation bonds. The Department of Health and Ageing prepared a Regulation Impact Statement which was assessed as adequate by the Office of Best Practice Regulation.
