RAD And DAP
What Is A RAD In Aged Care?
Understand refundable accommodation deposits and what families can check before paying one.
Short answer
A RAD, or Refundable Accommodation Deposit, is a lump-sum payment for accommodation in a residential aged-care home. It is generally refundable when the resident leaves care, subject to the agreement and any permitted deductions.
What the RAD does
The RAD pays for accommodation rather than daily care. Paying more upfront usually reduces the daily accommodation payment charged on the unpaid amount.
What to confirm
Ask how the RAD is protected, when it is refunded, and what deductions can apply. For eligible residents under arrangements introduced on 1 November 2025, retention is calculated daily at 2% per annum on the RAD balance for up to five years.
Turn this into a family decision.
Folra can help model RAD/DAP scenarios and turn the numbers into calmer questions to discuss before anyone signs.
Start the free calculatorCheck the current rates
Folra keeps a separate rates page for the MPIR and basic daily care fee currently used in calculator examples.
View current ratesCommon questions
Is a RAD the same as buying the room?
No. It is an accommodation deposit, not a purchase of property.
Sources
Rate and fee claims are checked against Australian Government sources where applicable.
Related guides
Disclaimer: Folra guides are educational only. They do not provide financial, legal, tax, or aged-care advice. Confirm current rules and consider independent advice before making decisions or signing agreements.