Refundable accommodation deposit (RAD) approval process

1. Decide on your proposed RAD amount

Decide on your proposed RAD amount or equivalent daily amount. When you apply for approval, you will need to include information to support the proposed amount.

You may wish to consider things like:

• your business considerations or strategy which support the proposed RAD
• whether the history of RADs residents have paid previously shows demand for your type of accommodation
• cost or value, such as the cost of building or refurbishing
• the benefits provided to residents from any improvements to infrastructure
• unique features of the accommodation or location that provide value to residents
• unique design features, innovative aged care practices or design excellence
• how you have maintained the quality and condition of the service since the previous approval (if relevant)
• analysis of your competitors and where your service fits within the local market
• median house price changes in the local area.

The rationale for your proposed RAD amount must not include:

• The cost of specified care and services as set out in the Quality of Care Principles 2014
• Maintenance costs
• Items that are covered by additional service fees or extra service fees.

2. Check you can apply

Before applying, make sure you understand:

• when RADs need approval
• who can apply

3. What you need to provide

You will need to provide the following information in your application.

General details

• approved provider name and ID
• details of the person we can contact if we need more information
• details of the person we should send our decision letter to
• details of your facility — name, service ID, address, number of rooms, if it is new or existing

Room and accommodation details

• accommodation group details — proposed price, number of rooms, description of group, common features, an explanation of how the groups differ from each other, RAD history
• details of each room — location within the home, room size, ensuite size, features and last approved RAD amount 
• photographs must not contain personally identifiable images or information of residents, visitors, contractors or staff.
• details of your common areas — area name, level, size, features, exclusive use, internal or external
• floor plan
• site plan

Accommodation groups are a group of rooms or parts of rooms that:

• have very similar size, quality, condition, comfort and features
• you are seeking to apply the same proposed RAD amount to

For example an aged care service may offer 3 types of accommodation at different prices (standard, deluxe and luxury).

Pricing rationale

• explanation of why you are seeking to charge your proposed RAD amount
• your home’s occupancy rate (12-month average)
• your home’s supported resident ratio (12-month average)
• land and building value summary including land and construction costs, fit out, furnishing and equipment costs
• evidence of values and costs
• details of any rooms offered on an extra service basis
• details of any additional service fees you charge
• any other related information

4. Complete the application form

To apply for approval you need to:

• complete both the application form and the application datasheet 
• provide supporting documents such as photographs, floor plans and evidence of building/land values

IHACPA complies with the Privacy Act 1988 and is committed to the protection of personal information.  Photographs must not contain personally identifiable images or information of residents, visitors, contractors or staff.

The information you provide is classified as protected information under the Aged Care Act 1997 (the Act). Under section 86-4A of the Act, we may share protected information about your application and approval with the Department of Health and Aged Care as the system operator, and the Aged Care Quality and Safety Commission as the system regulator, to support their legislative aged care functions. More information about the arrangements in place for the sharing of information is published in the Exchange of Letters on our website

5. Submit your application

To submit your application:

• sign the declaration to confirm that the information you have provided is true and correct
• email the completed application form and supporting documents to applications.accommodation@ihacpa.gov.au 
• list all the supporting documents in your email.

If you prefer, you can post the completed form and supporting documents as a hard copy to:

Independent Health and Aged Care Pricing Authority
PO Box 483
Darlinghurst NSW 1300

6. We process your application

We will send you a decision letter within 60 days of receiving your application.

Before we make a decision, we may ask you to provide more information through a formal request for further information (RFI). You will have 28 days to provide your response.  The 60 days for processing your application does not include the time we wait for this information.  

We will also let you know if we do not think your RAD amount will be approved. You can revise your application with more evidence or a lower RAD amount.

If you want to check the status of your application or need to update the information in your application, please contact us on (02) 8215 1193 or by email at applications.accommodation@ihacpa.gov.au.

7. Receive final decision

We will send you either:

• a decision letter with final approval
• a conditional approval letter asking for more information — when you have met all conditions, we will send you a final approval letter called ‘Satisfaction of Conditions’
• a decision letter stating your application is not approved.

If we do not approve your application, you can:

• apply again after 4 months
• appeal the decision — see the decision letter for how to do this.

Conditional approval

If your aged care facility is still under constuction or refurbishment works have not been completed you can apply for conditional approval.  Conditional approval provides an indicative price you can charge as an accommodation payment subject to you meeting certain conditions as set out in the Fees and Payments Principles 2014 (No 2).  

If you receive a ‘conditional approval’:

• You cannot publish the conditionally approved amount on your website, My Aged Care or in any written information provided to prospective residents
• You must not charge residents the conditionally approved amount until you receive a ‘Satisfaction of Conditions’ letter from IHACPA

Verification of conditional approval – Satisfaction of Conditions

When your construction or refurbishment programme is completed you must write to us to submit your final costs and photographic evidence of completion. We will verify the information you have provided and, if satisfied, issue you with a ‘Satisfaction of Conditions’ letter. 

You must not charge residents your conditionally approved price until you receive a Satisfaction of Conditions letter indicating that you have final approval and you publish the new amount on your website, My Aged Care and in your written information provided to residents.

8. Charge the approved amount

If you have received approval, you must publish the new price before you start charging it to new residents.

The approval is for the maximum price.  You can charge the approved price or less than the approved price.  However you cannot charge more for a room than the amount you have advertised on My Aged Care, your own website and any published materials for residents.

When your approval expires

Approvals are valid for 4 years from the date of the approval letter. Find out what your options are before the expiry of your RAD approval.