From 1 July 2014, residents entering aged care will have the same options to pay for their accommodation, regardless of the level of care they require.

The costs set out below apply from 1 July 2014.

Residential aged care costs generally fall in to 2 categories;

1. Accommodation Costs, and

2. Care Costs

Accommodation Costs:

Residents in both low care and high care will be asked to pay their accommodation costs in one of 3 ways. Residents can choose between;

1. A Refundable Accommodation Deposit (RAD) which is a refundable lump sum payment,

2. An equivalent Daily Accommodation Payment (DAP) being a periodic rental style or interest payment, or

3. A combination of RAD and DAP.

At The Orchards Aged Care, the maximum accommodation payment amount that will be charged for a room will be $550,000.

In some circumstances the Australian Government will provide a subsidy towards a residents accommodation costs. To determine if you are eligible please contact us.

To explain how the 3 payment options above are determined for an agreed accommodation payment of $550,000, we provide the following examples;


Example 1 – Payment of a lump sum RAD

RAD payable as a lump sum is $550,000

Maximum RAD is $550,000


Example 2 – Payment of a Maximum Daily Accommodation Payment DAP

Step 1: Determine MPIR (4.01% as at 1 Oct 2021)

Step 2: $550,000 x 4.01% = $22,220 pa

Step 3: $22,055 / 365 days = $60.42 per day

Maximum DAP is $60.88


Example 3 – Payment of a combination RAD and DAP

Step 1: Determine MPIR (4.01% as at 1 Oct 2021)

Step 2: $550,000 (agreed accommodation payment)

less ($300,000 RAD) = $250,000

$250,000 x 4.01% = $10,025 pa 

Step 3: $10,025 / 365 days = $27.46 per day

RAD is $300,000

Maximum DAP is $27.46

Care Costs:

There are 2 types of care costs;

1. A basic daily care fee which is currently a maximum of $53.56 per day, and

2. A means tested care fee which is payable by residents whose assets or income exceed certain thresholds set by the Australian Government. A means assessment is carried out by Centrelink and some residents may be asked to pay a means tested care fee of up to $28,792 pa, or $69,101 over a lifetime. A means tested care fee can be nil. It all depends on an assessment of an individuals income and assets. Please contact us to discuss further.

For more information or to discuss these costs please contact us on 4328 8300. To download a copy of our key features statement please click the following link, Key Features Statement.


Book a Tour Today