Refundable accommodation deposit approval process

1. Determine proposed RAD amount

Decide on your proposed RAD amount or equivalent daily amount for each accommodation group. When you apply for approval, you will need to include information to support the proposed amount. 

You may wish to consider things like: 

• your business considerations or strategy to support the proposed RAD price(s)
• whether the history of RADs that residents have previously paid shows demand for your type of accommodation
• the benefits provided to residents from any improvements to infrastructure
• unique features of the accommodation or location that provide value to residents
• unique design features, innovative aged care practices or design excellence
• how you have maintained the quality and condition of the residential care home since the previous approval, if relevant
• analysis of your competitors and where your residential care home fits within the local market
• median house price changes in the local area
• the cost of building or refurbishing, if seeking a conditional approval. 

The rationale for your proposed RAD amount must not include: 

• the cost of specified care and services, as set out in the Residential Care Service List
• items that are covered by additional service fees or extra service fees, where residents are still covered by pre-existing service agreements
• items covered by any higher everyday living fees
• any additional care or services.

2. Confirm eligibility to apply

You must apply to IHACPA for approval if you: 

• want to charge more than the maximum RAD amount (or equivalent daily accommodation payment (DAP)) for a room (or part of a room)
• want to charge an amount that is higher than your currently approved amount (above the maximum)
• have an existing approval that is expiring in the next 4 months. 

Conditional approvals 

If your residential care home is still under construction or refurbishment and works have not been completed, you can apply for conditional approval. Conditional approval provides an indicative price you can charge as an accommodation payment. This is subject to you meeting certain conditions as set out in subsection 290-30 of the Aged Care Rules 2025. Conditional approvals cannot be published on My Aged Care. Conditional approvals can be applied for using the same application as standard RAD approvals. 

If your RAD approval is still valid, you may apply indexation to your approved price/s. For more information, see Indexation of RAD approvals.

3. Prepare application materials

You will need to provide the following information or attachments as part of your application. 

General details 

Provide the following: 

• registered provider name and ID (PRV ID)
• details of the person we can contact if we need more information
• details of the person we should send our decision letter to
• details of your residential care home – residential care home name, residential aged care home ID (ARCH ID), address, number of rooms, if it is a new or existing residential care home or building
• details of proposed construction or refurbishment for a conditional approval 

Room and accommodation details 

Rooms and accommodation details include: 

• accommodation group – proposed price, number of rooms, description of group, common features, an explanation of how the groups differ from each other, a list of RADs received over the past 12 months (RAD history)
• for each room – location within the home, room size, ensuite size, features and last approved RAD amount
• photographs that are clear, clearly labelled, less than 6 months old, and must not contain personally identifiable images or information of residents, visitors, contractors or staff
• photographs representative of rooms and ensuites, key room features that support your pricing rationale, and common rooms related to each accommodation group being applied for
• for common areas – area name, level, size, features, exclusive use, internal or external
• floor plans that clearly show the room numbers and identify the accommodation groups in your application
• site plan. 

Accommodation groups are a group of rooms or parts of rooms that: 

• have very similar size, quality, condition, comfort and features
• you are seeking to apply the same proposed RAD amount to. 

For example, a residential aged care home may offer 3 types of accommodation at different prices – standard, deluxe and luxury. 

Pricing rationale 

Provide rationale for pricing, including: 

• the factors you considered to determine your proposed RAD amount
• your home’s occupancy rate (12-month average)
• your home’s supported resident ratio (12-month average)
• land and building value summary, including land and construction costs, fit out, furnishing and equipment costs
• evidence of values and costs
• details of any rooms offered on an existing extra service or additional service fee basis
• details of any higher everyday living fee you charge
• any other related information. 

Conditional approvals  

Provide detailed descriptions of planned building or refurbishment programmes, including:

• evidence of your projected construction costs
• floor plans, including size of rooms and common areas
• architectural renders and design documents, including a schedule of fit-out and fixtures with photographs, if available
• a detailed room description, including any accompanying furniture, features or outlooks with photographs, if available
• the expected completion date of your build.

For verification of conditional approvals, advise IHACPA once construction or refurbishment is completed by providing:

• any details outlined in your conditional approval letter
• final costings
• occupancy certificate, if applicable
• photographic proof of completion.

To apply for approval, you need to: 

• complete both the application form and the RAD data sheet
• provide supporting documents, such as photographs, floor plans and extensive detail of room quality, features and amenities. 

To submit your application: 

• submit the original completed form (not a scanned copy) and all supporting files
• email to applications.accommodation@ihacpa.gov.au 

Please note: 

• Each email should be no more than 30MB. You can send several emails if needed.
• You will receive an automatic reply once we have received your email. If you do not receive an automatic reply, please call us on (02) 8215 1100 (press option 2). 

IHACPA complies with the Privacy Act 1988 and is committed to the protection of personal information. Photographs must not contain personally identifiable images or information of residents, visitors, contractors or staff. Please redact faces, names and other identifiable personal items from photographs before submission. 

Information submitted in an application is considered ‘relevant information’ and may be considered ‘protected information’ as defined under the Aged Care Act 2024. ‘Relevant information’ and ‘protected information’ will only be used or disclosed in accordance with that Act. 

All information will be stored securely and used in accordance with IHACPA’s Privacy Policy.

5. Respond to requests for information

We may contact you if we have questions about your application to ensure we have all the information required to commence assessment.  

During the assessment process, we may contact you in writing through a request for information (RFI) notice to help us determine the outcome of your application, in accordance with section 290(4) of the Aged Care Act 2024. 

We may issue you with a request if: 

• there is insufficient information in your application 
• the information you have provided requires clarification 
• you have not provided evidence for specific factors considered in our assessment and requested in the application form. 

This request for information will outline: 

• what accommodation group/s we are seeking information for
• what specific and general information we need
• the timeframe for submitting this information
• what may happen if you are unable to submit the required information. 

Under section 290(5) of the Act, if the requested information is not given within the required period, your application will be automatically withdrawn.  

The 60-day period for IHACPA to assess an application is paused for the period a request for information is being sought.  

You may wish to voluntarily withdraw your application for any reason, prior to a decision being made. 

If you wish to change your RAD price or other significant details in your application, you will need to withdraw your application and submit these details in a new application.  

6. Assessment and decision

We will send you a decision letter within 60 days of receiving your application but the time period may be extended if there have been request(s) for information. 

We will send you either: 

• a decision letter with final approval
• a conditional approval letter asking for more information – when you have met all conditions, we will send you a final approval letter called Satisfaction of Conditions
• a decision letter stating your application is not approved. 

If the delegate does not approve your application, you can: 

• apply again after 4 months
• request a review of the decision.

Non-conditional approval 

If you have received approval, you must publish the new price before you start charging it to new residents. 

The approval is for the maximum price. You can charge the approved price or less than the approved price. However, you cannot charge more for a room than the amount you have advertised on My Aged Care, your own website and any published materials for residents. 

Conditional approval 

If you receive a conditional approval you: 

• cannot publish the conditionally approved amount on your website, My Aged Care or in any written information provided to prospective residents
• must not charge residents the conditionally approved amount until you receive a Satisfaction of Conditions letter from IHACPA. 

Verification of conditional approval – Satisfaction of Conditions 

When your construction or refurbishment programme is completed, you must write to us to submit your final costs and photographic evidence of completion. We will verify the information you have provided and, if satisfied, issue you with a Satisfaction of Conditions letter. You should allow 28 days for verification. 

You must not charge residents your conditionally approved price until you receive a Satisfaction of Conditions letter indicating that you have final approval and you publish the new amount on your website, My Aged Care and in your written information provided to residents. 

When your approval expires 

Approvals are valid for 4 years from the date of the approval letter. Find out what your options are before the expiry of your RAD approval.