Aged Care Fee - Refundable Accommodation Deposit (RAD) Negotiation
A RAD is requested when a resident permanently enters an aged care home and the resident has more than around $197,735 in assets.
The RAD is an interest free gift from the resident to the aged care provider. The full amount of the lump sum RAD will be returned to the family when the resident no longer is at the aged care home.
The interest earned by the provider from the RAD is used to maintain their current building or to provide the capital pool to build new aged care homes for future residents.
NO - Most families are surprised to find out that the RAD has always been negotiable between the resident and the aged care provider. We have been successfully negotiating the RAD for our family clients for many years.
There is definitely no predetermined level of RAD - the only stipulation that the Commonwealth Government provides is that the RAD requested by the provider must not exceed the maximum value published for that room within the aged care home.
There is no set amount for a RAD - The amount of the RAD is to be agreed between the resident and the aged care provider.
RAD sizes can vary widely between aged care homes in proximity to each other in the same location and also between residents in the same aged care home.
NO - There is no direct relationship between the level of RAD that a resident pays to the level of care received once they have been admitted to the aged care home.