RAD And DAP
RAD vs DAP Explained
A simple explanation of refundable accommodation deposits and daily accommodation payments.
Short answer
RAD is a lump-sum accommodation deposit, while DAP is a daily payment charged on the unpaid accommodation amount. Some families consider a mix of both after comparing cash flow, savings, estate planning considerations, and independent advice.
The simple difference
A RAD ties up money upfront and is generally refundable subject to permitted deductions. A DAP keeps money liquid but creates an ongoing non-refundable daily payment.
When a mix may be discussed
Some families pay part of the room price upfront and pay DAP on the remaining amount. This can reduce the daily payment while keeping some savings available.
Turn this into a family decision.
Folra can help model RAD/DAP scenarios and turn the numbers into calmer questions to discuss before anyone signs.
Start the free calculatorCheck the current rates
Folra keeps a separate rates page for the MPIR and basic daily care fee currently used in calculator examples.
View current ratesCommon questions
Can a family pay part RAD and part DAP?
Often, yes. Confirm the exact arrangement with the aged-care provider and consider independent financial advice for personal circumstances.
Sources
Rate and fee claims are checked against Australian Government sources where applicable.
Related guides
Disclaimer: Folra guides are educational only. They do not provide financial, legal, tax, or aged-care advice. Confirm current rules and consider independent advice before making decisions or signing agreements.