Refundable accommodation deposit (RAD) approval process

1. Decide on your proposed RAD amount

Decide on your proposed RAD amount or equivalent daily amount. 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 which support the proposed RAD
• cost or value, such as the cost of building or refurbishing
• whether the history of RADs residents have paid shows demand for your type of accommodation
• unique design or location features
• analysis of your competitors
• median house price changes in the local area

The rationale for your proposed RAD amount must not include items that will be covered by additional service fees or extra service fees.

2. Check you can apply

Before applying, make sure you understand:

• when RADs need approval
• who can apply

3. What you need to provide

You will need to provide the following information in your application.

General details

• approved provider name and 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 facility — name, service ID, address, number of rooms, if it is new or existing

Room and accommodation details

• accommodation group details — proposed price, number of rooms, description of group, common features, an explanation of how the groups differ from each other, RAD history
• details of each room (such as location within the home, room size, ensuite size, features, and last approved RAD amount)
• recent colour photographs taken of rooms and en-suite bathrooms in each accommodation group, common areas and any special features. Please ensure photographs do not contain any images of people including residents, staff or visitors
• details of your common areas — area name, level, size, features, exclusive use, internal or external
• floor plan
• site plan

Accommodation groups are a number 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, an aged care home may offer 3 types of accommodation at different prices — standard, deluxe and luxury.

Pricing rationale

• explanation of why you are seeking to charge 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 extra service basis
• details of any additional service fees you charge
• any other related information

4. Complete the application form

The form:

• includes a room details spreadsheet that you will need to complete
• asks for supporting documents as part of your application such as photos and floor plans.

To ensure the privacy of residents is maintained please check that data submitted by you does not contain information that may identify individuals and that photographs do not include images of any residents, staff or visitors.

The information you provide is confidential. It is protected information under the Aged Care Act 1997. We will not use or disclose it for any other reason except to assess your application.

5. Submit your application

To submit your application:

• email the completed application form and supporting documents to applications.accommodation@ihacpa.gov.au 
• list all the supporting documents in your email.

You will receive an auto-reply when we have received your email. If you do not receive an auto-reply, please call us on  (02) 8215 1193.

If you prefer, you can post the completed form and supporting documents as a hard copy to:

Independent Health and Aged Care Pricing Authority
PO Box 483
Darlinghurst NSW 1300

6. We process your application

We will send you a letter within 60 days of receiving your application.

If you have an urgent business or operational need for approval, please call us to discuss on (02) 8215 1193. We may be able to prioritise your application depending on the number and priority of other applications in our queue.

Before we make a decision, we may ask you to provide more information through a formal request. You will have up to 28 days to provide this. The 60 days does not include the time we wait for this information.

We will also let you know if we do not think your RAD amount will be approved. You can revise your application with more evidence or a lower RAD amount.

If you want to check the status of your application or need to update the information in your application, please contact us on (02) 8215 1193 or by email at applications.accommodation@ihacpa.gov.au.

7. Receive final decision

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 we do not approve your application, you can:

• apply again after 4 months

• appeal the decision — see the decision letter for how to do this.

If the aged care facility is still under construction, or refurbishment works have not been completed, then a conditional approval can be provided.

A conditional approval means that the RAD cannot be advertised in print, on the provider website or updated in My Aged Care.

A conditional approval can be converted to a full approval when the final photos and costs have been received and verified. A new decision letter will then be issued called ‘Satisfaction of Conditions’. The applicant may then advertise the approved RAD.

Charge the approved amount

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 this amount or any amount up to the maximum price.

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.