Expiring refundable accommodation deposit (RAD) approvals
Notice
On 12 September 2024, the Australian Government announced an increase to the maximum accommodation price for RADs effective 1 January 2025.
If you have an application currently under assessment or an existing approval expiring before 1 January 2025, please view the Changes to the higher maximum accommodation payment amount FAQs fact sheet.
For further information, please refer to the Response to the Aged Care Taskforce – Accommodation reform fact sheet.
RAD approvals expire after 4 years. Find out what your options are and how you can apply again for approval.
Your options
RAD approvals expire after 4 years. If your approval is about to expire, you can either:
- apply for approval of the same amount
- apply for approval of a higher or lower amount
- let the approval expire
When an approval expires, you can no longer publish or charge new residents the previously approved amount.
Important information about approvals that expired before 1 January 2025
Prior to 1 January 2025, you must have a valid approval to advertise and charge a RAD above the maximum accommodation payment amount of $550,000, until the new maximum amount of $750,000 takes effect on 1 January 2025.
If you charged an amount above $550,000 and up to $750,000 for which you do not have a valid approval before 1 January 2025, you may have overcharged.
For more information see our FAQs - Changes to the higher maximum accommodation payment amount fact sheet.
Charging without approval
Before 1 January 2025
If you become aware that you have charged a RAD:
- above the maximum accommodation payment amount of $550,000 after your approval has expired or
- more than your approved amount.
You must notify the Aged Care Quality and Safety Commission (the Commission) who will work with you to correct any errors and help you meet your legislative responsibilities.
From 1 January 2025
If you become aware that you have charged a RAD
- above the maximum accommodation payment amount of $750,000 without a valid approval in place
- more than your approved amount
you must notify the Aged Care Quality and Safety Commission (the Commission) who will work with you to correct any errors and help you meet your legislative responsibilities.
More information about what to do if you have previously charged or are currently charging above the maximum accommodation payment amount without approval can be found in the Commission’s fact sheet for providers Overcharged accommodation payments.
If through our assessment of your application, we find information that tells us you may have advertised or charged a RAD above the maximum accommodation payment amount without a valid approval in place we may share that information with the Commission as the national regulator and the Department of Health and Aged Care as the system operator. Information about the arrangements in place to support the coordination, cooperation and information sharing between agencies is published in the Exchange of Letters on our website.
Re-applying for approval
Follow the process to apply for RAD approval. You must submit your application at least 60 days before your current approval expires.
If your current approval has not expired, you can continue to publish and charge new residents the approved amount until the approval expiry date.