Are you planning to go into an aged care home? Have you ever heard of a refundable accommodation deposit? A refundable accommodation deposit, or the RAD, is a lump sum payment for aged care home accommodation. There are a few benefits associated with RAD, so it’s important to learn all about it.
If you would like to learn more about RAD and how it works, feel free to continue reading our article below.
A refundable accommodation deposit is a lump sum payment for accommodation in an aged care home or facility. It includes the price of a room in lump sum form which is agreed upon by your aged care home provider.
Accommodation prices can be paid in full by RAD or you can choose to pay through a combination of a smaller RAD and Daily Accommodation Payment (DAP). You can also pay for accommodation fully by DAP.
Depending on your agreement with your aged care home provider, you can deduct certain amounts for the lump sum that you have paid for already, such as care fees. Once the RAD is paid, it will be paid to the accommodation facility to be used for specific purposes like improving facility features and the quality of life.
Once you leave the aged care home, the RAD minus the agreed-upon amounts will be refunded; hence, the name Refundable Accommodation Deposit.
A Daily Accommodation Payment (DAP) is the daily payment for accommodation within an aged care facility or home. The DAP will be worked on by the aged care home based on a legislative formula that converts the RAD to a DAP price.
This payment will be made on a regular basis and up to a month in advance. Unlike the RAD, the DAP will not be refunded. However, you can pay your accommodation costs with a combination of RAD and DAP.
If you pay a RAD, you can talk to your aged care provider about deducting DAPs from it. Other care fees and additional services can also be deducted from your RAD upon agreement with your provider. It is recommended to write these agreements on paper to establish expectations, prices, etc.
There are a couple of rules to take note of regarding the refunding of the RAD. For example, if you decide to return home, then the RAD must be refunded within 14 days. If your care needs alterations and you require a different accommodation, the RAD can be refunded within 14 days upon which you will pay the amount to the new facility.
In the event that you pass away, the RAD will be refunded to your estate. This will occur within 14 days of receipt of a certified copy of Grant of Probate.
There are a few means by which you can pay accommodation costs, but choosing to pay with RAD has certain advantages.
Since you are paying for the RAD as a lump sum payment, this means that you won’t need to pay a daily rate with an extra interest rate set which is set by the government. Instead, if you’re able to pay the deposit upfront you can save money since you don’t need to pay extra interest charges.
Additionally, RAD is fully refundable and Government Guaranteed. If the facility is government accredited and if you come across an issue, you’re ensured not to lose your money.
It is also worth noting that our RAD payment is exempt when working out your aged pension entitlements, which is another factor to consider.
The refundable accommodation deposit or RAD is a lump sum payment for aged care home accommodation. Once you leave your aged care home, the RAD will be refunded to you under certain procedures and regulations. With RAD, its refunding is Government Guaranteed if you stayed at a facility that is government accredited.
Iris Manor provides all levels of care from low to high care with 24-hour nursing care onsite. We do not charge the 3 different fees that are normally associated with government-funded homes.
At Iris Manor, there are no long term contracts, no lump sum RAD or DAP, simply a fixed weekly rate. Come and see our facilities at Iris Manor and find out for yourself how good our place is for your loved ones.
Please call us today for an appointment on 1800 835 728 or send us an inquiry.
We encourage you to make the first step and book in a tour with our lovely community. We will show you the facilities, gardens, restaurant, hairdresser, movie cinema & much more.
Booking times are between 9am - 5pm Monday to Friday