Understanding RAD and DAP

April 9, 2014 | Aged Care Management

As we all know, big changes are on the way in the aged care sector, set to start on July 1. While there's certainly a lot to understand and prepare for before that date, one area aged care providers need to understand is RAD and DAP.

Developing an early understanding and subsequently making the necessary preparations will mean the best chance of achieving goals through July 1.

New residents coming into aged care will have a choice of payment options following July 1. The payment options are quite simple, and should be easy to understand and implement. 


The first choice is a refundable deposit – also known as a refundable accommodation deposit (RAD). The second is called a daily accommodation payment (DAP). As the name implies, payments are made periodically

These payment options aren't exclusive – residents are able to create a combination of sorts, paying one part as a refundable deposit and the remainder as periodic payments. The combination method here will likely work better for many residents going into aged care.

Providers need to prepare by setting appropriate prices for all available facility room types, and also accommodate the two above payment scenarios. In addition, all documentation available to residents must show the changes, either via a facility website or printed material.

To prepare for these changes and ensure implementation is smooth, Mirus Australia has created a readiness survey with the aim of getting facilities on the right track to preparing for the changes.

If you'd like further help understanding RAD and DAP, contact the friendly team at Mirus Australia, who are always available to answer any questions or queries. Contacting Mirus can put your facility in the best possible position for any future changes in the aged care market.