Step 8

How do I complete a Resident Agreement?

Overview of Step 8 'Agreements'

Step 8.1 What are the types of aged care legal agreements? Begin 8.1 

Step 8.2 What is a resident agreement? Begin 8.2 

Step 8.3 What is an accommodation agreement? Begin 8.3 

Step 8.4 When do you have to sign the aged care home agreements? Begin 8.4  

Step 8.5 What are my rights and responsibilities in an aged care home? Begin 8.5 

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8.1 What are the types of aged care legal agreements?

What is a resident agreement?

After being offered a place in an aged care home (nursing home) you need to complete some paperwork, to confirm that you understand and accept the terms of moving in.   This paperwork includes a Resident Agreement which everyone has to sign, an Accommodation Agreement if you are contributing to the cost of your accommodation, and an Extra Service Agreement if you choose to live in an extra service room in a home that has extra service status.

  •  Depending on the aged care home, you may be offered:

    • three separate agreement documents
    • a single Resident Agreement that also incorporates the Accommodation Agreement and the Extra Services Agreement
    • a choice to have a single agreement or two separate agreements 

    Plus:

Whether you sign one combined agreement or two separate agreements will affect how much time you have to sign the agreement.

8.2 What is a resident agreement?

What is a Resident Agreement?
  • The services and care being made available to you
  • The fees you will pay
  • The rights and responsibility of the aged care home (nursing home)

Plus:

  • Your rights and responsibilities as a resident
What should the Resident Agreement include?

The Resident Agreement should clearly identify the following things:

  • The name of the aged care home 
  • The policies, practices and considerations used in calculating your fees
  • How much you will pay as your basic daily fee
  • How much you will pay if you have to pay an additional means-tested care fee
  • Any ‘extra services’ you have agreed to and how much they will cost
  • The rights and responsibilities of the aged care home towards you as a resident
  • Your rights and responsibilities as a resident in the aged care home
  • The process for dealing with complaints - from you, family or friends
  • The circumstances in which you could be asked to leave the home - for example non-payment of fees, or if your needs change and the home is not able to provide the level of care you need - and the process involved in helping you find new accommodation

Plus:

  • Any other agreements made between you and the manager of the aged care home (nursing home) within the requirements of the Aged Care Act 1997
Is the Resident Agreement Legally Binding?

Yes, the Resident Agreement is legally binding so you should be sure that you - and your family member or other representative - understand all the elements of the agreement.

  • What is included and what is excluded in the costs? Consider things like food and meals, bedding, medical supplies and special equipment?
  • What can the home charge you extra for?
  • How will you be paying your daily care fee?
  • If you are not paying it directly yourself, who is responsible and is that made clear?

Plus:

  • Don’t be afraid to ask questions or request that additional details are included.

The Resident Agreement is legally binding so you should be sure that you and your family member or representative understand all elements of it.

Change of mind?
  • After you have signed the Resident Agreement you have 14 days to change your mind:
  • If you want to withdraw from the Resident Agreement within 14 days of signing, you need to let your aged care home (nursing home) know straight away, in writing. You will still need to pay your care fees and charges for the care you’ve received during the 14 days. If you’ve made any other payments to the home during that time, you are entitled to a refund.
  • If you decide you’d like to make changes to your Resident Agreement, both you and your aged care home (nursing home) will have to agree.

Plus:

  • If you want to end your Resident Agreement at any time, you will have to give notice to the home, preferably in writing.
The Resident Agreement for Respite Care

If you are only going to the aged care home (nursing home) for a short time - for respite care – you still need a Resident Agreement.

As with permanent or long term care, the Resident Agreement for respite care will provide information on both:

Plus:

  • the costs to you – referred to as the respite care booking fee, which is a prepaid basic daily fee

8.3 What is an accommodation agreement?

You will need to sign an Accommodation Agreement whether or not you have to pay for your accommodation.

What should the Accommodation Agreement include?

The Accommodation Agreement should clearly identify the following things:

  • The price you have agreed to pay the home for your accommodation.
  • Details on the three payment options you can choose from to pay the accommodation price:
    1.) the lump-sum amount – the Refundable Accommodation Deposit (RAD) 
    2.) the rental-type payment amount – the Daily Accommodation Payment (DAP)
    3.) combined payment amounts, such as 50 per cent payment by lump-sum and 50 per cent rental-type payment amount
  • Other conditions of your accommodation payment, including, if applicable, the refund amount of your lump sum balance if you leave or die, or interest rates charged.
  • Any extra service costs for higher standard accommodation, meals and services, which the home can provide at additional cost.
  • The specific accommodation you will be provided with – single or shared room, ensuite or shared bathroom.
  • Any services that your accommodation payment entitles you to receive.
  • The date you moved into the accommodation.
  • The conditions relating to moving rooms.

8.4 When do you have to sign the aged care home agreements?

Resident Agreement

You can choose to enter into the Resident Agreement but not sign it at the time it is offered. You are free to take time to ask friends or family, your carer, financial adviser or lawyer to help you go through the agreement, if you wish.

There is no official time limit for signing the Resident Agreement, however if you choose not to sign the Resident Agreement the aged care (nursing home) must record that you have agreed to the Resident Agreement.

As the Resident Agreement covers your rights and responsibilities, it is in your best interest to finalise the Resident Agreement as soon as you can.

Accommodation Agreement

You have 28 days from the date you move in - to decide how you want to pay your accommodation costs and sign the Accommodation Agreement.

If you have any questions you should ask the aged care home (nursing home).  It is up to them to make sure you and your family or other representatives have every chance to properly understand this legally binding agreement.  You can also ask family, friends or a legal practitioner to help you understand the agreement.

If you are contributing to your accommodation costs, you have 28 days from the date you move in to decide how you want to pay your accommodation costs and sign the Accommodation Agreement.

Combined Resident Agreement and Accommodation Agreement

If the Accommodation Agreement is a part of the Resident Agreement and you have to pay a contribution to your accommodation costs, then you'll need to sign the resident agreement within 28 days of moving into your aged care home.

Before you sign, remember:

If there are any parts of the agreements that you don’t understand you should tell the aged care home and get help.

Before you sign, remember, if there are any parts of the agreements that you don't understand you should tell the aged care home and get help.

8.5 What are my rights and responsibilities in an aged care home?

Rights and Responsibilities in an aged care home

All residents in Aged Care Homes (nursing homes) have the same rights and responsibilities, protected in legislation by the Australian Government. All government funded homes must comply with these rules.

A copy of the Charter of Aged Care Rights should be included with the Resident Agreement and your provider should make sure you understand them before you move in.

The charter should also be displayed in the aged care home (nursing home).

The Charter of Care Recipients Rights and Responsibilities states that all residents have the following rights:

  • Safe and high-quality care and services
  • Be treated with dignity and respect
  • Have my identity, culture and diversity valued and supported
  • Live without abuse and neglect
  • Be informed about my care and services in a way I understand
  • Access all information about myself, including information about my rights, care and services
  • Have control over and make choices about my care and personal and social life, including where the choices involve personal risk
  • Have control over, and make decisions about, the personal aspects of my daily life, financial affairs and possessions
  • My independence
  • Be listened to and understood
  • Have a person of my choice, including an aged care advocate, support me or speak on my behalf
  • Complain free from reprisal and have my complaints dealt with fairly and promptly
  • Personal privacy and to have my personal information protected
  • Exercise my rights without it adversely affecting the way I am treated.

Your aged care home (nursing home) has the following responsibilities and must: 

  • Comply with the Aged Care Quality Standards
  • Help people using aged care understand their rights about the services they receive
  • Help people using aged care understand their rights under the Charter
  • Make sure people using aged care or their representatives are given a reasonable opportunity to sign the Charter
  • Sign and give the person receiving care a copy of the charter (representatives can also receive a copy)
  • Keep a record of the Charter given to the person receiving care.

8.6 How do I make a complaint to an aged care home?

Lodging Complaints

If you are not happy with an aspect of your care or other services you receive in the aged care home (nursing home), you have the right to express your concerns or make a complaint.

The system to make a complaint has been designed to be safe and easy.  You should also know that you can't be punished by the aged care home for making a complaint.

There are two ways to make a complaint:

1. Raise the complaint directly with the aged care home

This is usually the best initial course of action. Aged care homes are expected to include details of their complaint procedures as part of the Resident Agreement so you should know how to raise a concern and with whom.   The management staff of the home will always want to hear your concerns first and have the opportunity to work with you to fix the problem or find a solution as quickly and effectively as possible.

2. Make a complaint to the Aged Care Quality and Safety Commission.

The Aged Care Quality and Safety Commission's role is to protect the safety, well-being and quality of life of people in aged care. 

If you want to make a complaint about the quality of care or services being delivered in aged care, contact the Aged Care Quality and Safety Commission on 1800 951 822 or visit agedcarequality.gov.au.  

Providers must not discontinue care or services, refuse access or otherwise take action against a person because they have made a complaint. They must address complaints fairly, promptly and confidentially.

Annie Donaldson

agedcare101 Registered Nurse and Carer

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A special thanks to our contributors

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Caroline Egan

DCM Media, agedcare101

Caroline has a wealth of experience writing within the retirement and aged care sector and is a contributing journalist for the Villages.com.au and agedcare101 blog and accompanying newsletters.

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Ian Horswill

Journalist

Ian is a journalist, writer and sub-editor for the aged care sector, working at The DCM Group. He writes for The Weekly Source, agedcare101, villages.com.au and the DCM Institute fortnightly newsletter Friday. Ian is in daily contact with CEOs of retirement living, land lease and the aged care operations and makes a new contact every week. He investigates media releases, LinkedIn and Facebook for a good source for ideas for stories.

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Lauren Broomham

Retirement and Aged Care Journalist

Lauren is a journalist for villages.com.au, agedcare101 and The Donaldson Sisters. Growing up in a big family in small town communities, she has always had a love for the written word, joining her local library at the age of six months. With over eight years' experience in writing and editing, she is a keen follower of news and current affairs with a nose for a good story.

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Jill Donaldson

Physiotherapist

Jill has been practicing as a clinical physiotherapist for 30 years. For the last 13 years she has worked solely in the Aged Care sector in more than 50 metropolitan and regional facilities. Jill has also toured care facilities in the US and Africa and is a passionate advocate for both the residents in aged care and the staff who care for them. She researches and writes for DCM Media.

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Chris Baynes

DCM Media, agedcare101

Chris has been a journalist and publisher in the retirement village and aged care sectors for 11 years. He has visited over 250 retirement villages and 50 aged care facilities both within Australia and internationally. Chris is a regular speaker at industry conferences plus is a frequent radio commentator.

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Annie Donaldson

Nurse and Carer

Annie has a long career in both nursing and the media. She has planned and co-ordinated the medical support from both international TV productions and major stadium events. In recent years she has been a primary family carer plus involved in structured carer support.