Daily Accommodation Payment guide

Considering an aged care residency for yourself or a loved one? Understanding the financial commitment is crucial. One of the key payment options is the Daily Accommodation Payment (DAP)—a non-refundable daily fee that helps cover the cost of your room in an aged care home. We’ll break down what the DAP is and what your other payment options are when moving into aged care. With clear information, you can navigate the financial landscape of aged care with confidence.

What is the daily accommodation fee?

In aged care, the DAP is your contribution toward the cost of your accommodation.  It’s calculated based on the agreed room price and is similar to paying rent. You’re paying for the space, amenities, and upkeep of your room.

Here’s how it works:

1. 1.Room price is set by the provider: Each home establishes a price for their accommodation, considering factors like room size, location and amenities. This price represents the total cost of staying in that specific room and must be published and approved if it exceeds the government threshold (currently $750,000 from January 2025)
   
   
2. 2. You choose how to pay: You have the flexibility to choose how you'd like to pay for your accommodation. This usually involves a deposit and/or regular payments.
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Understanding aged care daily accommodation payments

You can pay for your aged care accommodation through a refundable lump sum, daily payments or a combination of both.

• Refundable lump sum (RAD or RAC): This is a deposit on your room. You can choose to pay the full price (Refundable Accommodation Deposit or RAD) if you're not eligible for government support or a Refundable Accommodation Contribution (RAC) (if you're partially supported). with the government contributing the rest.
  When you leave your Estia Health home, the amount refunded to you or your estate will be reduced by up to 2% per annum for a maximum of five years, capped at 10%, plus the cost of your stay.
  
  
• Daily payments:  If you don’t pay the full RAD/RAC upfront, you’ll pay a Daily Accommodation Payment (DAP) or Daily Accommodation Contribution (DAC) if you're partially supported). These payments are non-refundable.
  If your assets exceed $238,000 or income exceeds $95,400, you may be required to pay the full accommodation cost.
  
  
• Combination: You can choose to combine a refundable lump sum with daily payments. This lets you spread out the cost or use some money upfront to lower your daily payments.

How are daily accommodation payments calculated?

If you choose to pay for your accommodation by DAP, the amount is worked out by applying the Maximum Permissible Interest Rate (MPIR, a government-set interest rate used to calculate a daily accommodation payment based on your agreed room price) to your agreed room price and dividing the amount by 365.

You can find more information on My Aged Care.

Aged care daily accommodation payment at Estia Health

Whichever way you decide to pay, Estia Health is always here to help. We strongly suggest that you get independent financial advice before beginning this process so that you are fully aware of all of your assets and comfort in proceeding. You can also visit My Aged Care for further information.

To learn more about the different fees aged care residents must pay, visit our page on aged care costs.

If you are interested in finding out more about our homes or staying with us in respite care or long-term care, please contact us on 1300 682 833.