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3.3.3 Resident options
Both an accommodation payment and an accommodation contribution can be paid as a refundable deposit (lump sum), a daily payment or a combination of both:
- Accommodation Payment:
- Refundable Accommodation Deposit (RAD), Daily Accommodation Payment (DAP), or both;
- Accommodation Contribution:
- Refundable Accommodation Contribution (RAC), Daily Accommodation Contribution (DAC) or both.
The relationship between the refundable lump sum and the daily payment is:
Equivalent daily payment = (refundable deposit × maximum permissible interest rate)/365
A refundable lump sum payment for accommodation costs when the resident making the payment is not eligible for Government assistance, and is meeting the full costs of their accommodation on their own.
A payment for accommodation costs worked out by converting the refundable accommodation deposit (RAD) to a daily amount, which is payable as a periodic amount by aged care residents.
A refundable lump sum payable by aged care residents towards their accommodation costs, with the Government also making a contribution on the resident’s behalf.
A payment for accommodation that accrues daily and is payable as a periodic amount by aged care residents for whom the Government is also making a contribution.