Increased protection for residents’ savings held as bonds

The Department of Health and Ageing has issued a Consultation Paper as part of the Government’s plan to increase protections for aged care residents’ savings held as accommodation bonds.

The announcement was made as part of the More Support for Older Australians in the National Health and Hospitals Network in April 2010.

The Consultation Paper initiates the second round of public consultation that the Department will be conducting to design and implement enhanced prudential regulation of accommodation bonds.

As part of the consultation process an Issues Paper was released for public comment on 27 October 2010. A total of 33 submissions were received by the Department.

The Department has also held a number of meetings with relevant stakeholders. The issues outlined in the submissions and discussed in the consultation meetings have informed the development of the Consultation Paper.

The Department invites comment from interested parties on the proposals outlined in this paper. In addition, the Department welcomes suggestions and views on other issues related to the implementation of the measures.

The Consultation Paper is available from the Department’s website on http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-rescare-resid-savings

Submissions received for the Consultation Paper will be made publicly available on the Department’s website. Submissions should be made by no later than close of business on 8 March 2011.