Entering residential aged care can involve three different agreements: a service agreement, an accommodation agreement and, only if wanted after entry, a higher everyday living agreement. They do different jobs. Reading them as one bundle makes it easy to miss a room-change clause, an optional fee or the difference between the published room price and the amount actually payable after means assessment.
Review the means assessment and fees, compare RAD and DAP payment methods, and browse the aged care home directory before committing.
Identify each agreement on the table
The service agreement sets the care relationship, rights, responsibilities and arrangements. The accommodation agreement records the room, agreed price, payment conditions and room-change rules. A higher everyday living agreement covers optional services above required residential services and must remain separate.
Ask the provider to label every document and schedule. Check that the resident’s name, home, room type and entry date are consistent. If one annex is missing, do not assume standard wording will protect a verbal promise.
Create a one-page agreement map listing the clause for room price, payment method, included services, optional fees, room changes, leave, termination, complaints and refunds. Write every unanswered question beside its clause. This makes a long document reviewable and prevents one staff answer from being mistaken for a contractual term.
Match the room to its published price
Every entrant agrees a room price in writing, even when means assessment later shows government assistance. The agreed price cannot exceed the maximum published for that room, though a lower price can be negotiated. Confirm the exact room features attached to the price: size, bathroom, outlook, shared spaces and secure-unit location.
Save the published listing and date. Ask whether renovation, a voluntary room move or a move requested by the home can change the price. The accommodation agreement should explain room-change policies and conditions.
Do not confuse price with payment method
The agreed room price is not the same as the method used to pay it. Depending on means status, the resident may make a refundable lump sum, daily payment, accommodation contribution or a combination. Residents can choose a method that suits their circumstances under the applicable rules.
Model cash flow and retained capital. For new arrangements, daily accommodation payments may be indexed on scheduled dates, and providers may retain prescribed amounts from refundable deposits under current rules. Obtain calculations in writing and confirm which entry-date arrangements apply.
Check the service list before buying extras
Residential providers must supply accommodation, everyday living, non-clinical care and clinical care from the funded service list according to assessed needs. This includes essential meals, cleaning, personal care, nursing, medication management and required aids or equipment. An optional label cannot turn a required service into an extra charge.
Ask the provider to mark each proposed fee as required, means tested, accommodation or optional. If the explanation is unclear, request the legal or contractual basis and independent advice before signing.
Compare the service list with the applicant’s needs. If continence products, a hoist, texture-modified food or nursing is required by the care plan, ask why any separate charge appears. For an optional item such as premium entertainment or a preferred non-clinical service, check price, frequency, cancellation and whether an individual item can be chosen outside a bundle.
Keep higher everyday living genuinely optional
A higher everyday living agreement cannot be required to secure a room and cannot be made before the resident enters care. It must state each service, price, frequency and standard. Bundles must also offer their component services individually, and a resident should not pay for a service they cannot use.
A standing agreement has a 28-day cooling-off period and can later be varied or cancelled under notice rules. Ask how annual indexation works, how the agreement is reviewed and how charges stop when a service cannot be delivered.
Request the price of every component in a bundle and identify who can actually use it. If declining one service makes the whole bundle poor value, ask for individual purchase. Record the start date because the cooling-off clock and later notice obligations depend on timing. Check the first invoice against the signed schedule.
Keep written evidence of every cancellation or variation and check the next statement, including any claimed unavoidable cost or indexation adjustment.
Review exit, absence and dispute clauses
Check notice, termination, hospital leave, social leave, death, transfer, final billing, deposit refund and room-clearing provisions. Identify the complaint and dispute process. Ask who receives notices and how the home communicates with a registered supporter or appointed decision-maker.
Do not sign as “guarantor” or accept personal liability unless that is an informed, intentional decision supported by advice. Signing for the resident in an authorized role is different from agreeing to pay the resident’s debt personally.
Check signature blocks carefully. State the representative capacity and attach evidence of authority requested by the provider. If the resident has decision-making capacity, support them to understand and decide even when a family member manages paperwork. Ask for a complete signed copy immediately and store later variations with the original rather than as isolated emails.
FAQ: Must agreements be signed before entry?
Accommodation and service arrangements should be agreed before entry, with specific rules and cooling-off protections applying. Ask for documents early enough to review. An optional higher everyday living agreement can only be entered after the resident has moved in.
FAQ: Can we negotiate the room price?
Yes. The provider publishes a maximum for the room, and the parties may agree to a lower amount. Get the negotiated price in the accommodation agreement and confirm that the room description matches the offered room.
FAQ: Can the home request a RAD before move-in?
Current rules do not allow a provider to collect accommodation costs before the resident enters care. Ask for the written payment schedule and verify any request that is described as a deposit, holding amount or advance fee.
Room availability, agreed price, means status, signing authority and final admission must be confirmed directly with the home and the responsible public agencies before payment.