The agreements: what you sign, when, and the 28-day cooling-off period

When a parent moves into an aged care home, there's paperwork, often at a stressful time. It helps to know that there are separate agreements, each with its own job and timing.

The three agreements at a glance

Agreement	What it covers	When
Service agreement	Your parent's right to a bed, the care and services, the fees and their rights	Before or on the day your parent moves in
Accommodation agreement	The room, its price and how it can be paid	Before your parent moves in
Higher everyday living fee agreement	Optional extras, such as pay TV or a wider menu	Only after moving in, and only if your parent wants extras

The service and accommodation agreements can be in the same document.

The service agreement

This is the main agreement with the home. It must be in plain language and set out:

• your parent's right to occupy a bed in the home;
• the standard care and services the home will provide;
• which fees and contributions your parent may be asked to pay, and how the home sets them;
• the interest on late payments, and what happens if fees aren't paid;
• when the agreement can end, including the situations where your parent could be asked to leave;
• how complaints are handled, and a copy of the Aged Care Statement of Rights.

It's agreed before or on the day your parent moves in, and it's reviewed every year.

The 28-day cooling-off period

There's a 28-day cooling-off period for the service agreement, counted from the day it was agreed, not the day your parent moved in. If your parent changes their mind and lets the home know within that time, by speaking or in writing, they can pull out. They still pay for care and services already received, and the home must give back anything paid for services it hasn't yet provided. If they pull out within 14 days and before their care has started, the agreement has no effect and any fees paid come back.

The accommodation agreement

This sets out the room and its cost, including:

• the date your parent moves in;
• the agreed room price, and the features it covers;
• the ways the room can be paid for: a lump sum, a daily payment, or both;
• for a daily payment, that it rises each March and September;
• for a lump sum, that retention will be taken, and when the balance is refunded;
• any amounts that can be deducted.

For people moving in from 1 November 2025, the accommodation agreement must be made before your parent moves in, and the home must give you a copy first. The room price is agreed in writing before entry.

You don't have to choose how to pay for the room before moving in. Daily payments apply until a lump sum is paid. A lump sum can be paid, or topped up, any time after the means assessment is finished, or after your parent decides not to complete one.

The extras agreement

The higher everyday living fee agreement covers optional extras. It must be separate from the other two, and it can only be made after your parent has moved in and the service agreement is in place. Extras can't be a condition of getting a room. It has its own 28-day cooling-off period. Our guide to the higher everyday living fee explains it.

Who signs

The home must make sure your parent understands each agreement. Your parent can agree without signing, as long as the home records that they agreed. If your parent can't make the decision, someone with legal authority to decide for them, such as an attorney under an enduring power or a guardian, may sign. Each state has its own rules for these documents.

Before you sign

• Read each agreement properly, and ask the home to explain anything unclear.
• Ask for copies to take away.
• Check the room price against the price published on My Aged Care.
• Get help if you need it. A lawyer, a licensed financial adviser or OPAN's free advocates can look over the agreements with you.

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