What is a Refundable Accommodation Deposit (RAD)?
A RAD is a financial contribution paid by a resident towards the capital cost of accommodation in an aged care facility such as Eventide Lutheran Homes (Eventide).
What is a Daily Accommodation Payment (DAP)?
A DAP is a periodic payment that is derived from the RAD and payable on a daily basis. The calculation for a DAP is based on any outstanding amount of a RAD and is calculated using the Maximum Permissible Interest Rate as set by the Government on a quarterly basis, the rate as of 20 March 2020 is 4.91%
Who pays a RAD?
If you have been financially assessed at the time of entry to Eventide as being able to pay a RAD you will be required to do so. Subject to certain exemptions, this is based on your means which may include the value of your home and contents. Assets are individually assessed for each member of a couple. Centrelink will undertake the calculations for the means test to determine the amount of contribution the resident will pay toward their care and then advise the resident and the facility of this amount.
How much is the RAD?
As part of the Government reforms for the Aged Care sector which came into force on July 1st 2014 all Government funded Aged care facilities must now set a maximum amount for their RAD. Eventide has set this at $350,000. (please refer to notes below).
What are the RAD payment options?
There are two options for payment of the RAD.
- As a lump sum – this is fully refundable and daily payments will no longer apply
- As a combination of a lump sum amount and daily payment.
When is the RAD payable?
The RAD is payable up to six months from entry to Eventide. All residents have twenty eight (28) days from the day of entry to decide how they wish to pay their RAD. A DAP is payable until the RAD is paid.
If the RAD is paid wholly or partly by periodic payments then the periodic portion is payable from your date of entry to Eventide.
How much of the RAD is refundable?
100% is refundable.
Is interest paid on a refundable RAD ?
We are required to pay you or your estate, interest on your RAD while it is awaiting refund after you leave Eventide. The interest we owe you is calculated at the Base Interest Rate applicable at the time of your departure.
** All financials must be completed and returned before meeting with the Eventide CEO or delegate.
Please note that the minimum asset level, capped bond limit (for residents in care pre 20 March 2008), retention amounts and interest rates are regulated by government and change at various times throughout each year. In addition, the Board of Eventide from time to time can adjust the upper amounts of a RAD in individual cases by applying to the Aged Care Commissioner. Consequently the figures contained in this information sheet may be different at the time of your admission.
The My Aged Care website has been established by the Australian Government to help you navigate the aged care system. The gateway is part of the Australian Government’s changes to the aged care system which have been designed to give people more choice, more control and easier access to a full range of aged care services.
You can find more information about these and other improvements to Australia’s aged care system, as well as information about the aged care workforce and a glossary of definitions that may help you to understand any unfamiliar terms that you come across while finding out more about aged care.