About refundable accommodation deposit approvals
A refundable accommodation deposit (RAD) is a lump-sum payment made by a resident for a room (or part of a room) in an approved residential care home.
About refundable accommodation deposits
Each approved residential care home sets their own price for different types of rooms.
Providers must publish the prices on My Aged Care, their website and in published materials for residents, including:
- a lump-sum RAD amount
- an equivalent daily accommodation payment (DAP)
- an example of a combination of both payment types.
Residents must agree on a room price and enter into an accommodation agreement before moving into a residential care home.
RADs are refundable when the resident leaves care, minus any agreed deductions and/or applicable retention amounts. For more information about RADs, see the Department of Health, Disability and Ageing's website.
Information about the new fee arrangements that were introduced on 1 November 2025 can also be found on the Department of Health, Disability and Ageing’s website.
About the maximum accommodation payment amount
The maximum accommodation payment amount registered providers can charge a resident as a refundable accommodation deposit (RAD) or equivalent daily amount, without approval from IHACPA is $750,000, as of January 2025.
This amount is indexed to the consumer price index from 1 July each year.
The current indexed maximum accommodation payment amount is published on the Department of Health, Disability and Ageing’s website.
When RADs need approval
Providers must apply to IHACPA for approval if they want to charge more than the maximum accommodation payment amount as a RAD (or equivalent daily accommodation payment) for a room (or part of a room) or their current approval is expiring.
Section 290-25(2) of the Aged Care Rules outlines the matters that must be considered by IHACPA in deciding whether to approve the higher maximum accommodation payment amount.
Approvals are valid for 4 years.
Registered providers, seeking to charge a higher maximum accommodation payment, are required to apply to IHACPA at least 60 days prior to its approval expiry date.
The 60-day period for IHACPA to assess an application is paused for the period a request for information is being sought. This may lead to an application assessment process that is longer than 60 days.
Approvals cannot be applied retrospectively and cannot be backdated to cover periods between approval dates.
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.
How we share information
If we identify potential non-compliance with applicable laws when assessing your application, we may disclose your information to relevant government agencies or as required by law, including the Department of Health, Disability and Ageing, and the Aged Care Quality and Safety Commission.