Accommodation Payments

RADs and DAPs

Accommodation Payments

A Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP) contribute towards the cost of your accommodation in residential care.

Accommodation payments contribute towards the cost of your accommodation in residential care. You will only be asked to pay an accommodation payment if your income and assets exceed an amount set by the Australian Government. You can choose to pay for your accommodation: by a Refundable Accommodation Deposit (RAD) or a Daily Accommodation Payment (DAP), or a combination of both.

We strongly recommend you seek expert financial advice from a registered financial planner to help make the right decision for you.

Refundable Accommodation Deposit (RAD)

A RAD is effectively an interest free loan to your aged care provider so they can afford to maintain and improve the home you are moving into, or even invest in new homes. It is paid as a lump sum amount to the provider and is fully refundable.

At Regis, the RAD amount varies with the standard of accommodation available, the location of the home, and whether you are looking at a single or double room with a private or shared en suite.

Your RAD is guaranteed by the Australian Government. If you leave the aged care home for any reason, you get all your money back, minus any outstanding payments.

 If you do not pay your RAD in full when you arrive, a DAP is payable pending payment of the RAD.

Daily Accommodation Payment (DAP)

You can also choose to make your accommodation payment by a DAP. This is a daily charge and is payable if you decide to not pay a lump sum RAD.

The DAP is worked out based on the agreed room price and the maximum permissible interest rate. This method of calculation is regulated by the Government.

It is worth noting that, unlike a RAD, accommodation payments made as a DAP are non-refundable.

Combination Payment (RAD/DAP)

You may also elect to pay for your accommodation as a combination RAD/DAP payment. In this scenario you pay a lump sum RAD which is less than the agreed accommodation price and then pay the DAP calculated on the balance remaining. You can use our calculator to see how different combination payments work

Remember even if you decide to pay by DAP or Combination, you may elect to pay a full RAD at any time.