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.
Charging without approval
If you become aware that you have charged a RAD amount more than $550,000 after your approval has expired you need to:
- notify the Aged Care Quality and Safety Commission (the Commission) that you have charged a RAD more than the maximum amount without a valid approval in place (overcharged)
- let the affected resident and/or their representative know that you have overcharged them their accommodation payment and
- refund the amount you have overcharged the resident including any interest in accordance with s75 of the Fees and Payments Principles 2014 (No.2)
For more information about what to do if you have previously charged or are now charging above the maximum accommodation payment amount for a room without a valid RAD approval in place contact the Aged Care Quality and Safety Commission. More information about overcharged accommodation payments 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 charged or advertised a RAD above $550,000 without a valid RAD approval in place, we may share that information with Commission as the 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.