A resident agreement is a legal agreement between a resident and the aged care provider.
What’s an aged care provider?
Aged care providers are approved organisations that provide residential accommodation or home services for Australians over 65 who require extra assistance to continue living well.
The Australian Government subsidises approved aged care providers to deliver these services. To operate as an aged care provider the organisation must be approved by the Aged Care Quality and Safety Commission.
What’s in the resident agreement?
Care and support services
The agreement will cover all the care and support services the aged care home is able to provide, and the specific care and services it will offer you. It will include how the aged care home plans to meet your needs in the future, too, if things happen to change.
Costs
It will explain how much your care will cost, broken down into basic daily and means tested care fees (if applicable). It will include all the details about how your fees are calculated as well. It will also outline fees for any additional services that the aged care home provides. If you’ve agreed to additional services, you will be provided with a regular itemised account. If it is an extra service place, it will include details of the extra service fee.
Rights and responsibilities
The agreement will explain your rights and responsibilities as a resident, and the responsibilities your aged care home has to you. It will also outline the process for dealing with concerns and complaints.
Security of tenure
It will outline how the aged care home will continue to support you as your needs change, known as “ageing in place”. It will also include details around when you can be asked to leave, how to exit the agreement, and how to move to another aged care home.
Other
If they have a policy on visitors, it will be explained, along with any other matters agreed to between you and the aged care provider.
Choosing and moving into a retirement village
Read the NSW Government’s help for future residents and their families to choose a retirement village. Learn about tenancy types, contracts and how to compare costs.
What must be included in the contract?
The agreement must include:
- resident details
- provider details
- the date when the provider will begin to provide the services
- the date when services will end where residence services are not employed on a permanent basis
- the levels of care service to be provided
- information about fees, charges and payments
- the resident’s responsibilities
- how the provider deals with complaints
- the reasons why a resident may be asked to leave
- how to seek alternative accommodation if required
What are the responsibilities of the provider?
The Australian Government Department of Health requires the resident agreement to be written in plain language and be readily understandable by the care recipient. While resident agreements can become lengthy and complicated, it is important that the prospective resident understands and agrees to all fees and conditions set out in the agreement. The provider is responsible for making sure residents understand what is in the agreement. This can become quite a complicated process. If you are not sure about an aged care agreement, seek independent legal advice from a solicitor who understands the Aged Care Act. Our legal service can advise you. Call our free, independent and confidential phone service on 02 9281 3600
It is important to know that a resident can choose to agree to the details in the resident agreement without actually signing it. If the resident chooses this option the provider must record all discussions with the resident and what has been agreed to.
A resident agreement should be provided to the resident before or when they move in. A cooling-off period of 14 days applies, during which the resident may withdraw from the agreement. The provider must then refund any amount paid under the agreement.
The provider must review and update the agreement if the resident’s care needs change or if the resident asks the provider to review it. Such reviews should be part of ongoing care discussions.
Please note – this is general information only. It is not legal advice. If you feel you need legal advice, please speak to a Seniors Rights Service solicitor
Call our free, independent and confidential phone service on 02 9281 3600
