Hi - I have read everyting I can find on RAD
I think the RAD is fully refundable
If the RAD deposited was paid in full
How is the accommodation payment room rate (say $70pd) paid?
Is the $70pd room rate payable monthly with other fees?
OR does interest earned on the RAD by the facility pay for the $70pd room rate?
OR how is the $70pd charged/paid?
Confused
Hi Po,
The RAD is the Refundable Accommodation Deposit (used to be the accommodation bond) and is set by the aged care home. The previous accommodation charge is now called the DAP (Daily Accommodation Payment) and is the equivalent of the RAD but paid periodically. The DAP is calculated by multiplying the the RAD by the current government interest rate and then divided by the number of days in a year ie 365. You can pay a RAD a DAP or a combination of the the two. The RAD is refundable and any interest the aged care home makes on the RAD is kept by the home when the RAD is returned at the end of a resident’s stay. The DAP is not refundable. As well as accommodation costs everyone in aged care home has to pay the basic daily fee which is 85% of the single person rate of the basic aged pension. Currently it is $50.66 / day. There is also the means tested care fee (if your income and assets are over a certain amount) and in some homes fees for extra and additional services. The government sets the maximum basic daily fees. RegardsAgedCare101 team