RAD and DAP explained
A simple explanation of accommodation payment terms and how families can model scenarios.
For: Families comparing residential aged care accommodation costs
Short introduction
RAD and DAP are common terms families see when comparing residential aged care accommodation costs. They can feel technical, but the basic idea is easier once you separate the lump sum and daily payment parts.
Plain-English explanation
A Refundable Accommodation Deposit, or RAD, is an accommodation price that may be paid as a lump sum. A Daily Accommodation Payment, or DAP, is a daily amount linked to the unpaid part of the RAD.
Families may see different payment combinations. Actual fees can depend on provider pricing, government settings, means assessment, personal circumstances, and advice specific to the family.
When this topic matters
This topic matters when residential care is being considered and the family needs to understand what questions to ask before making payment decisions.
- You are comparing room prices across homes.
- The family is deciding whether a lump sum, daily payment, or mix may be possible.
- You need to understand how daily costs could affect cash flow.
- A decision may affect other financial planning questions.
Practical next steps
Use an indicative calculator to understand scenarios, then verify actual fees with the provider and consider independent financial advice before deciding.
- Write down the quoted RAD and DAP figures from each provider.
- Ask what fees are included and what optional services cost extra.
- Use KinHarbour's cost modeller for indicative scenarios.
- Speak with an appropriate financial adviser for personal advice.
Common mistakes to avoid
A calculator can help with understanding, but it is not a quote and does not account for every personal or regulatory factor.
- Treating an indicative estimate as the final fee.
- Ignoring optional daily fees or extra services.
- Making payment decisions without checking personal financial implications.