Refundable Accommodation Deposit (RAD): A lump sum amount that is refundable to you when you leave the Care Community for any reason, minus provider retentions and any outstanding charges owed under your agreement.  

Under the Aged Care Act (2024), providers are required to retain 2% of the lump sum amount each year for a maximum of five years (the retention amount is calculated daily and deducted from the lump sum monthly). 

The RAD prices on bedrooms vary between Care Communities and the type of bedroom.  Confirm the RAD price on a bedroom in any Care Community you are interested in so you can enter it here.

You have the option to pay a partial or full lump sum deposit which will reduce your daily accommodation payment (DAP). Only the lump sum payment (minus the 2% retention) is refundable when you leave our Care Community (not the daily accommodation payment (DAP).
Use this calculator to change the lump sum amount you want to deposit and see how your DAP changes accordingly.

Daily Accommodation Payment (DAP): a rental style equivalent, which is a daily interest payment on the full room price. The maximum permissible interest rate (MPIR) is set by the government. Those who are partially supported by the government will be asked to pay a daily accommodation contribution (DAC). Since this is a monthly interest-only payment, it is not refundable in any part.
If you do not make any lump sum deposit on the bedroom you will pay a full DAP.
Use this calculator to change the lump sum amount you want to deposit and see how your DAP changes accordingly.

As well as an accommodation payment you will also be asked to pay daily fees which contribute towards your daily living costs such as nursing and personal care, meals, linen and laundry, and heating and cooling. Daily fees are comprised of two parts:

• basic daily care fee which is set by the government at 85% of the full pension,
• an additional means tested care fee or hotelling contribution, which is payable depending on assets and income of the resident.

Means Tested Care Fee or Hotelling Contribution

This is an additional contribution towards the cost of care that some people may be required to pay. The Department of Social Services will work out if you are required to pay this fee based on an assessment of your income and assets, and will advise you of the amount. under the New Aged Care Act this contribution fee is now called a Hotelling Contribution.

Maximum Permissible Interest Rate (MPIR)

The MPIR is a government-set interest rate used to calculate a daily accommodation payment based on your agreed room price. It is used to determine equivalence between a daily payment and a refundable lump sum deposit, giving you a choice in how to pay. The MPIR is not an interest charge to residents who have not paid for their accommodation costs in full. It is set at a level to ensure that if you choose to pay daily payments rather than a lump sum, the daily payments are sufficient to cover the costs of providing accommodation in your aged care home. You can find current and previous MPIRs on the Department of Health website.