A break of more than 28 consecutive days can change which accommodation rules apply when an older person returns to permanent residential aged care. It does not automatically change the person’s fee arrangements. That distinction matters because the current accommodation settings can involve refundable accommodation deposit or contribution retention and indexation of a daily accommodation payment, while earlier settings may not.
The Australian Government Department of Health, Disability and Ageing updated its guidance on 23 February 2026. It says fee arrangements do not change merely because a resident exits and re-enters care, regardless of the length of the break. Accommodation arrangements can change after more than 28 consecutive days when the break is a discharge from care, begins on or after 1 November 2025 and is not hospital or approved leave. A family comparing a return offer therefore needs two written answers: which fee arrangements continue and which accommodation arrangements will apply.
Establish whether there was a discharge or approved leave
Start with the provider’s records. Ask for the exit date, exit reason and whether the absence was recorded as discharge, hospital leave or another form of approved leave. The 28-day rule is not a simple calendar test applied to every absence. The official guidance expressly excludes hospital and approved leave from the break that can move a resident to the 1 November 2025 accommodation arrangements.
Keep discharge letters, leave approvals and the earlier resident agreement. If the record is wrong or unclear, resolve it before accepting a new room. A family should not rely on a receptionist’s description such as “she was away for a month”. The legal and financial classification of the absence is what matters.
Count the break correctly
Count consecutive days out of permanent residential care, not visits home while the person remains on approved leave. Confirm the date on which the break began and the proposed re-entry date. Ask the provider to show its count in writing. A difference of one day can change the accommodation treatment.
Also check that the break began on or after 1 November 2025. The current guidance describes a specific route into the 1 November 2025 accommodation arrangements for a person who first entered residential care before that date and returns after a qualifying break. Avoid applying a summary rule to an older sequence of events without confirming it with Services Australia.
Keep fee arrangements separate from accommodation arrangements
Fee arrangements determine matters such as means-tested fees, thresholds, taper rates and caps. Accommodation arrangements determine what is paid for the room, available payment choices and whether retention from a refundable amount or indexation of a daily payment applies. The two settings do not always match.
For example, a person may move to the 1 November 2025 accommodation arrangements after a qualifying break while retaining earlier fee arrangements. Ask the home to state each arrangement separately. The fee advice letter from Services Australia lists amounts payable but may not name the arrangement, so ask Services Australia if the classification is uncertain.
Request a fresh accommodation offer before reserving
Do not assume the previous room price or payment method follows the resident back. Request a dated written offer identifying the room, published accommodation price, agreed price, payment choices and any amount payable from the proposed entry date. If the person may pay an accommodation contribution rather than a negotiated accommodation payment, ask how that will be confirmed after the means assessment.
The offer should also explain whether refundable accommodation deposit or contribution retention and daily accommodation payment indexation apply. These features generally apply under the 1 November 2025 accommodation arrangements and do not apply under the 1 July 2014 accommodation arrangements. Ask for worked examples rather than a single headline figure.
Compare RAD, RAC and daily payment consequences
A resident may be asked to make an accommodation payment or contribution depending on their assessed position. The terminology matters. A refundable accommodation deposit is not the same as a refundable accommodation contribution, and a daily accommodation payment has different cash-flow effects from paying a refundable amount.
Compare at least three scenarios: a larger refundable amount, a larger daily payment and a combination. Include retention where relevant, indexation, the timing of any means assessment and the effect on liquidity. Do not use another resident’s calculation. The correct amount depends on the resident, the room and the arrangement that applies.
Check the fee advice letter and provider calculation
When a resident enters care, Services Australia sends the resident and provider a fee advice letter. It may state whether the resident pays an accommodation payment, accommodation contribution, bond or charge and may state an amount. The provider remains responsible for charging the correct types and amounts.
Compare the letter with the agreement and first invoice. Identify any period where the provider is charging provisionally and ask how an adjustment will be handled. If the home cannot explain why the fee and accommodation settings differ, pause before making an irreversible financial election and seek independent financial advice.
Avoid an irreversible opt-in decision
A resident on earlier arrangements may be able to opt in to newer arrangements. The department advises getting financial advice first because the decision cannot be undone. Do not let an opt-in form become routine admission paperwork. Ask whether the return after the break already changes accommodation arrangements, whether any separate opt-in is being proposed and what exactly it changes.
Require side-by-side figures using the same room and expected stay. An option that reduces the first invoice may cost more over time. The decision should account for assets, cash flow, likely length of stay and estate planning, not only the provider’s preferred payment method.
Confirm clinical admission and real availability separately
A correct financial classification does not prove the home can meet the person’s needs. Send updated medication, mobility, cognition, behaviour, continence, nutrition and equipment information. Ask the clinical team to approve the return and identify any changed care requirements.
Similarly, a room advertised online is not a confirmed offer. Obtain the room, entry date, clinical acceptance and accommodation terms in writing. If the person needs to return urgently after hospital or family care breaks down, ask for temporary options without representing them as a permanent admission.
Use a total-cost comparison
Compare homes using the same time horizon and the same assumptions. Include the basic daily fee, means-tested or non-clinical contributions where applicable, accommodation payment or contribution, optional services and personally funded extras. Mark every amount as confirmed, estimated or awaiting Services Australia.
Ask what happens if the entry date changes, the room becomes unavailable, the means assessment is delayed or the resident leaves shortly after admission. Review deposits, refunds, notice and any deduction or retention. A quote that omits the applicable accommodation arrangement is not ready for comparison.
Provider incentives and independent help
Providers may prefer payment structures that suit their capital and cash-flow needs. An adviser or placement service may also receive a provider commission. Ask who pays the adviser, which homes are excluded from the search and whether the recommendation changes with the payment method.
Curalune can help a family define the case, select compatible options and organise the questions needed for a fuller contact service. Curalune does not guarantee availability or admission. Services Australia, the provider and the resident’s chosen financial adviser remain responsible for classifications, offers and personal advice.
A practical sequence before signing
- Obtain the previous agreement, exit record and leave status.
- Confirm whether the break exceeded 28 consecutive days and was a discharge.
- Ask Services Australia which fee and accommodation arrangements apply.
- Obtain clinical approval and a real room offer.
- Request a written total-cost comparison under the applicable rules.
- Review any opt-in separately and obtain financial advice.
- Sign only when dates, amounts, refund terms and optional services are clear.
Frequently asked questions
Does a break of more than 28 days reset every aged-care fee?
No. Government guidance says fee arrangements do not change simply because a resident exits and re-enters, regardless of the break length. A qualifying break can change accommodation arrangements.
Does hospital leave count toward the 28 days?
The specific rule for moving to the 1 November 2025 accommodation arrangements excludes hospital and approved leave. Confirm how the provider recorded the absence.
Will the fee advice letter name the arrangement?
It lists fees and amounts but may not name the arrangement. Contact Services Australia when the classification is unclear and compare the response with the provider’s agreement.
Can Curalune confirm the room or the final amount?
No. Curalune can help organise option selection and contact questions, but it does not guarantee availability or admission and cannot replace the provider, Services Australia or personal financial advice.