Learn about your choices between RAD and DAP payments for aged care accommodation in Australia. Understand your rights and options for paying.
Key areas covered:
- Do I have to choose between paying a RAD or a DAP?
- When do I need to decide how to pay my accommodation costs?
- Can I change my payment method after moving in?
Do I have to choose between paying a RAD or a DAP?
No, you don’t have to choose between one or the other. According to aged care legislation, you have the flexibility to pay your accommodation costs through: 1) daily payments (DAP), 2) a refundable deposit (RAD), or 3) a combination of both. If you don’t make a choice, you will default to paying by daily payments.
When do I need to decide how to pay my accommodation costs?
You need to decide your payment method after signing your accommodation agreement but before your start day. However, it’s important to note that you cannot pay by refundable deposit (RAD) before your start day in the aged care home. It’s recommended to seek independent financial advice before making this decision.
Can I change my payment method after moving in?
Yes, if you initially pay by daily payments (DAP), you can later choose to pay a refundable deposit (RAD) or combine both payment types. If you’ve paid a partial RAD, you can also choose to top up the refundable deposit up to the agreed accommodation payment amount. Daily accommodation payments are subject to indexation according to the rules.
