Maximum Permissible
Interest Rate

Residential Care Guide

Maximum Permissible Interest Rate (MPIR)

What is MPIR?

The MPIR is set by the government and plays a pivotal role in determining the interest rate used to calculate daily accommodation payments (DAPs) for individuals receiving residential aged care services. This rate is subject to periodic adjustments based on economic factors and government policies.

Calculation of MPIR

The Australian Government determines MPIR based on the 90-day Bank Bill Swap Rate (BBSR) plus a percentage to cover the costs of providers in offering residential care services. It's essential to comprehend this formula to understand how it affects accommodation payments.

Importance of MPIR

The MPIR directly influences the accommodation payment options available to residents and their families. It impacts the amount residents pay as a daily rate for their accommodation and significantly affects the overall cost of aged care services.

Implications and Considerations

Families and individuals seeking aged care need to understand how MPIR affects their financial planning. Explaining the implications of MPIR variations and its relationship to accommodation payment options is crucial for making informed decisions.


At Aged Care Connect, we strive to inform individuals and families by providing comprehensive information about MPIR and its impact on residential aged care costs. We are dedicated to assisting you in navigating the complexities of aged care financial arrangements.