Fees payable by a resident in an aged care facility are regulated by the Commonwealth Government of Australia.
The Refundable Accommodation Deposit (RAD) is a lump sum payable upon entry to an aged care facility by residents who are not entitled to receive government funding towards their accommodation costs. The room price is set by the aged care facility and is subject to stringent government regulation.
From 1 November 2025, Retention Fees of 2% per annum will be applied as a daily rate to the daily balance
of the RAD, deducted monthly and capped at 5 years.
Refundable Accommodation Deposit (RAD) is the lump sum dollar amount payable to an aged care
facility and is a contribution towards the cost of the resident’s living environment, including bedroom,
recreational areas and dining rooms. The retention fee on the RAD is capped at a maximum of
10% of the incoming price (2% per annum, calculated daily).
Daily Accommodation Payment (DAP) is the interest payable on any outstanding lump sum amount (RAD) that has not been paid by a resident to the aged care facility. The current interest rate used to calculate the DAP is set by the Commonwealth Government and is currently 7.61% from 1st October 2025. The DAP is subject to indexation twice a year based on CPI.
Residents will have the choice of paying for their accommodation as a RAD; a DAP; or a combination of the two.
A new resident will have up to 28 days from entering care to choose whether to pay the agreed accommodation price by a RAD or DAP or a combination of both. The DAP is the default position until a RAD is paid. Daily payments are not required more than one month in advance.
Drawing Daily Accommodation Payments (DAPs) from the Refundable Accommodation Deposit (RAD) The DAP can be paid by the resident or can be drawn down from the RAD if the resident has chosen to pay a combination of a RAD and a DAP. Providers may also agree to have other amounts drawn down from the RAD, however they may increase the DAP by an amount that compensates for the decreasing RAD balance. This needs to be clearly explained in writing to the resident. The minimum assets the Government has legislated that a resident must hold at the date of entry is $63,000 for a single person or $126,000 for a couple and can include car, contents, investments, or the family home.
The maximum RAD at Imlay House ranges from $400,000 to $550,000.
| Room type |
Daily payment (DAP) |
Maximum RAD |
| Double room w/ shared ensuite |
$83.40 |
$400,000 |
| Single room w/ shared ensuite |
$87.57 |
$420,000 |
| Single room w/ ensuite |
$114.67 |
$550,000 |
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