Costs and fees

Refundable Accommodation Deposit (RAD)

RADs are defined as a ‘refundable accommodation deposit’, which was previously called an accommodation bond. The RAD is payable by the resident within 6 months of entering the facility. The consumer can choose how to pay for their accommodation, as either a lump sum (RAD), daily accommodation payment (DAP) or combination of both, within 28 days of entering the Aged Care Facility. Until the RAD is paid, a DAP will be invoiced monthly.

Daily Accommodation Payment (DAP)

DAPs are defined as ‘daily accommodation payment’, which was previously known as a periodic payment. This daily accommodation payment would be paid by the resident. The consumer can also choose a combination of both payments, which they can elect to deduct the DAP from any RAD balance held. We must also publish two combinations of RAD/DAPs for consumers to consider. If a resident has not chosen a payment method within 28 days, then the default payment options will be a DAP.

Means Tested Care Fee (MTCF)

The co-contribution by care recipients will be based on an income and assets test, which may calculate a Means Tested Care Fees (MTCF). The payments in residential aged care will be to a maximum threshold of $32,718.57 (indexed annually) per annum. A lifetime limit of $78,524.69 (indexed annually) will also be in place. The actual amount will be determined by government.