RADs can once again be paid at any time

Some welcome news for aged care residents and their financial advisers. A legislative amendment has been passed through Parliament to restore flexibility around when a Refundable Accommodation Deposit (RAD) or Refundable Accommodation Contribution (RAC) can be paid.

Under the aged care rules introduced on 1 November 2025, residents were unable to pay a RAD/RAC until Services Australia had completed their means-test assessment or issued a means-not-disclosed determination.

This created an unnecessary financial burden for many residents, who were forced to pay the Daily Accommodation Payment (DAP) or Daily Accommodation Contribution (DAC) while waiting for their assessment to be finalised. In some cases, these delays stretched into months.

The good news is that this restriction will now been removed once Royal Assent has been granted. This change will apply to all residents, regardless of when they entered aged care.

Residents will once again be able to choose to pay all or part of their RAD/RAC from the date they enter permanent residential care, without waiting for Services Australia to complete the assessment.

This is a sensible and welcome change. It puts control back in the hands of residents and allows financial advisers to help clients implement an accommodation payment strategy that best suits their circumstances, rather than having their choices dictated by administrative delays.