RAD stands for Refundable Accommodation Deposit. It 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.
DAP stands for Daily Accommodation Payment. As an alternative to paying your Accommodation Payment as a lump sum, you can pay periodic payments, which are based on a daily fee and billed monthly. The DAP is not refundable when you leave the aged care home. The DAP amount is 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.
Daily Accommodation Payments (DAP) are calculated based on the government set Maximum Permissible Interest Rate (MPIR). As at 20 September 2018, the MPIR is 5.96%.
To calculate the equivalent DAP, multiply the Refundable Accommodation Deposit by the MPIR and divide by 365 for the daily rate. For a combination RAD/DAP payment, multiply the remainder of the RAD by the MPIR and divide by 365. For example, the DAP on 50% of a $350,000 RAD is determined by: [(50% x $350,000) x MPIR]/365 = ($175,000 X 5.96%)/ 365 = $28.58 per day.
Additional fees that may apply:
- The above accommodation charges do not apply to concessional/fully supported residents.
- The government-set Daily Care Fee is in addition to the above accommodation charges, and is currently set at $50.66
- Other government charges, such as the Means Tested Care Fee, may apply. Please speak with the Manager for further information.