RAD / DAP
Maximum Permissible
Interest Rate (MPIR)
from 1st April 2022


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What is a RAD, DAP and MPIR ?

When you begin researching residential aged care, you will eventually hear about three acronyms relating to the price of residential aged care; they are essential to understand.

Make sure you have all the current information about Aged Care Fees, RADs and DAPs - we have saved families hundreds of thousands of dollars relating to accommodation payments


  • The Refundable Accommodation Deposit (RAD) is a standard room price set by the aged care home, and paid as a lump sum deposit which is returned to the family when the care recipient is no longer a resident at the home.
  • The Daily Accommodation Payment (DAP) is a daily payment which can be paid as an alternative to paying a large lump sum deposit payment.
  • The Maximum Permissible Interest Rate (MPIR) is the Commonwealth regulated maximum interest rate used to calculate DAP on the agreed RAD value.

The RAD and DAP is loosely based upon the quality, location and features of the accommodation and can vary from aged care homes in the local area and can also vary from room to room in the same aged care home.

If an aged care home wants to charge more than $550,000 for their RAD, they need to seek approval from the Aged Care Pricing Commissioner.

The DAP is calculated by multiplying the RAD by the current government interest rate (MPIR) and divided by the number of days in that year.

Aged Care Providers must display their accommodation prices in both RAD and DAP figures prior to charging their clients.

From the day of entering care, the new resident has 28 days to work out whether they want to pay the facility a lump sum, daily payment or some combination of the two.

Under the Living Longer, Living Better reforms, the resident must be left with a minimum asset value of 2.25 times the basic age pension at the time of entry.

That sum is subject to quarterly change, but currently it means a resident must be left with at least $51,000 if they choose to pay at least part of the accommodation costs by refundable deposit.

The introduction of the RAD and DAP was predicted to increase marketplace competition and broaden consumer choice.

Alongside the introduction of the RAD and DAP, a means test measuring a combination of assets and income determines how much the government will contribute to a person’s accommodation.

A person’s home is considered a part of their assets, unless a spouse or dependant relative still lives there.




Maximum Permissible Interest Rate (MPIR) - from 1st April 2022


maximum permissible interest rate (mpir)


Period MPIR
1/04/2022 to 30/06/20224.07%
1/01/2022 to 31/03/20224.04%
1/10/2021 to 31/12/20214.01%
1/7/2021 to 30/09/20214.04%
1/4/2021 to 30/06/20214.01%
1/1/2021 to 31/03/20214.02%
1/7/2020 to 31/12/20204.10%
1/4/2020 to 30/6/20204.89%
1/1/2020 to 31/3/20204.91%
1/10/2019 to 31/12/20194.98%
1/08/2019 to 30/9/20195.54%
1/07/2019 to 31/7/20195.54%
1/04/2019 to 30/6/20195.96%
1/01/2019 to 31/03/20195.94%
1/10/2018 to 31/12/20185.96%
1/07/2018 to 30/09/20185.96%
1/04/2018 to 30/06/20185.77%
1/01/2018 to 31/03/20185.72%
1/10/2017 to 31/12/20175.70%
1/07/2017 to 30/09/20175.73%
1/04/2017 to 30/06/20175.78%
1/01/2017 to 31/03/20175.76%
1/10/2016 to 31/12/20165.76%
1/7/2016 to 30/09/20166.01%
1/04/2016 to 30/06/20166.28%
1/01/2016 to 31/03/20166.22%
1/10/2015 to 31/12/20156.14%
1/07/2015 to 30/09/20156.15%
1/04/2015 to 30/06/20156.36%
1/01/2015 to 31/03/20156.75%
1/10/2014 to 31/12/20146.63%
1/07/2014 to 30/09/20146.69%
1/04/2014 to 30/06/20146.63%
1/01/2014 to 31/03/20146.59%
1/12/2013 to 31/12/20136.60%
1/10/2013 to 30/11/20136.60%
1/07/2013 to 30/09/20136.82%
1/04/2013 to 30/06/20136.95%
1/01/2013 to 31/03/20137.24%
1/10/2012 to 31/12/20127.62%
1/07/2012 to 30/09/20127.66%
1/04/2012 to 30/06/20128.37%
1/01/2012 to 31/03/20128.62%
1/10/2011 to 31/12/20118.86%
1/07/2011 to 30/09/20119.00%
1/04/2011 to 30/06/20118.92%
1/01/2011 to 31/03/20119.02%
1/10/2010 to 31/12/20108.74%
1/07/2010 to 30/09/20108.80%
1/04/2010 to 30/06/20108.16%
1/01/2010 to 31/03/20107.95%
1/10/2009 to 31/12/20097.30%
1/07/2009 to 30/09/20097.13%
1/04/2009 to 30/06/20097.16%
1/01/2009 to 31/03/20098.76%
17/11/2008 to 31/12/200811.31%
1/10/2008 to 16/11/200811.31%
1/07/2008 to 30/09/200811.75%
1/04/2008 to 30/06/200811.69%
1/01/2008 to 31/03/200811.15%
1/10/2007 to 31/12/200710.75%
1/07/2007 to 30/09/200710.37%
1/04/2007 to 30/06/200710.37%
1/01/2007 to 31/03/200710.37%
1/10/2006 to 31/12/200610.19%
1/07/2006 to 30/09/20069.87%


RAD / DAP
Conversion Calculator

RAD/DAP Conversion Calculator
from 1st as at April 2022

        Select Negotiated RAD Amount: $

Use slider for the lump sum paid
to calculate DAP to be paid

%

        Lump Sum of RAD Paid : $

DAP Payment:$20.20 pd

Current interest rate (MPIR) is: 4.07% pa
(effective 1st April 2022)





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