Depending on your income and assets, you may be asked to pay an accommodation payment. This level of this accommodation payment is dependent on the specific residence and suit you are interested in and the method you choose to pay the fee.
The payment options are:
- Refundable Accommodation Deposit (RAD), or
- Daily Accommodation Payment (DAP), or
- Combination of RAD and DAP.
Refundable Accommodation Payment (RAD)
Each room has a differing Refundable Accommodation Deposit (RAD), used to maintain and improve the accommodation and resident services at the home. A RAD is a lump sum payment to the aged care provider. The full RAD amount is refunded upon departure of the facility and is 100% guaranteed by the government.
Daily Accommodation Payment (DAP)
The DAP amount is a calculation based on the Maximum Permissible Interest Rate (MPIR), which is set by the government, and the agreed price of the room/suite you are interested in. Our Admissions staff can give you an indication on the DAPs which may apply to a particular room. DAPs are not refundable when you leave the aged care facility.
You can choose to pay part of your accommodation as a RAD and part as a DAP. DAP amounts will be calculated based on the outstanding RAD amount. Upon leaving the facility, your RAD amount will be refunded but not DAP payments.
We stated above that Accommodation Payment is dependent on a person’s assets and income. Some rooms are available for residents with reduced financial means (Supported Residents). Residents with assets under $47,500 and an income less than $26,072.80 (Note 1) may be eligible for additional funding from the Australian Government.
Supported residents may be asked to contribute to their cost of care via a Daily Accommodation Contribution (DAC) or Refundable Accommodation Contribution (RAC) or a combination of both, if their assets are between $47,500 and $162,087.20 and their income is greater than $26,072.80 (Note 1).
RAC = Refundable accommodation contribution this is where the government determines the amount to pay (This only applies to a partly-supported resident).
DAC = Interest paid on outstanding amount of the RAC – accrued daily and payable monthly which is the daily accommodation payment advised by the government.
Note 1: The income cap is variable based on whether you are a single person or a couple who do not live together because of illness. The figure quoted here is for a single person.