Residential Care Guide

Daily Accommodation Payment

What is the Daily Accommodation Payment (DAP)?

The Daily Accommodation Payment (DAP) is a fee charged by aged care facilities approved by the Australian Government for residents in residential care. This payment primarily covers the accommodation costs for residing in an aged care facility.

How Does the Daily Accommodation Payment Work?

The DAP is calculated based on a daily rate multiplied by the number of days the individual stays in residential care. The Australian Government sets a maximum permissible amount for the DAP, but aged care facilities can charge less than this amount. The DAP amount can also vary depending on the facility, room type, location, and services provided.

Eligibility for the Daily Accommodation Payment

Eligibility for the DAP is linked to an individual's assets and income assessment conducted by the Australian Government's Department of Human Services or the Department of Veterans' Affairs. This assessment determines the contribution a person needs to make toward their aged care costs, including the DAP.

Significance of the Daily Accommodation Payment in Aged Care

The DAP plays a crucial role in aged care financing, allowing individuals to access high-quality residential care services without bearing the entire cost upfront. Understanding how the DAP fits into the overall aged care payment structure can aid in planning and financial decision-making for individuals and their families.

Comparing Daily Accommodation Payment Options

There are multiple payment options available for the DAP, including paying the amount as a lump sum (Refundable Accommodation Deposit - RAD), periodic payments, or a combination of both. Exploring these options and seeking financial advice can assist in selecting the most suitable payment method aligned with personal preferences and financial circumstances.


In conclusion, the Australian Government Residential Care's Daily Accommodation Payment is a significant aspect of aged care arrangements. It provides individuals with choices on how they fund their accommodation in an aged care facility. Understanding the workings, eligibility criteria, and available payment options can empower individuals and their families to make informed decisions regarding aged care.

At Aged Care Connect, we are dedicated to providing comprehensive information and support to help individuals navigate the complexities of aged care arrangements. Reach out to our team for personalised assistance and guidance tailored to your specific needs.