From 1 July 2014, there are changes to how new residents are charged for accommodation. These changes will only affect new residents who enter facilities 1 July 2014.
The current differences between high care and low care will be removed; instead the same system will apply for all new residents.
New residents will have the choice to pay for their accommodation either as a refundable deposit (a lump sum, also known as a refundable accommodation deposit or ‘RAD’), an equivalent daily payment (a periodic payment, also known as a ‘daily accommodation payment’ or ‘DAP’) or a combination of both.
A new resident will have up to 28 days from entering care to choose whether to pay the agreed accommodation price by a refundable deposit or daily payment or some combination of both. The daily payment is paid unless and until a refundable deposit is paid. Daily payments must not be required more than one month in advance.
Daily payments can be paid by the resident or drawn down from a refundable deposit the resident has paid to the provider, if the resident has elected to pay a combination of a refundable deposit and a daily payment.
Definitions:
Refundable Accommodation Deposit (RAD): A one off, upfront refundable lump-sum accommodation deposit
Daily Accommodation Payment (DAP): A daily accommodation fee
Combo: Apportioned combination of the two above RAD and DAP payment options
Government Supported Resident: Is a resident with assets less than $45,500 at time of entry.
A government supported customer is not required to pay a RAD or DAP
