Understanding Centrelink Aged Care fees: Co-Payments for Residential Aged Care — RAD/DAP, RAC/RAC & Full Support

Navigating the costs of residential aged care and centrelink aged care fees can feel overwhelming for families, especially when you’re suddenly faced with unfamiliar acronyms like RAD, DAP, RAC, and questions about whether someone qualifies as a “full-support” resident.

This guide breaks down the main Centrelink-assessed payment categories so you can better understand what they mean and how they affect out-of-pocket costs.

Assessments are generally completed through Services Australia after you apply via My Aged Care.

1. Accommodation Payments: RAD and DAP

When someone moves into residential aged care, they may be required to contribute toward their accommodation costs depending on their financial assessment.

There are two main payment options:

Refundable Accommodation Deposit (RAD)

• A lump sum payment paid to the aged care provider.

• Fully refundable when the resident leaves care (minus agreed deductions).

• No interest is charged to the resident.

• Can reduce or eliminate ongoing daily accommodation payments.

Daily Accommodation Payment (DAP)

• A daily payment, similar to paying rent.

• Calculated based on the RAD amount and a government-set interest rate.

• Paid periodically (usually fortnightly or monthly).

Combination (RAD + DAP)

Many families choose a mix:

• Part lump sum

• Part daily payment

This can help manage cash flow while reducing ongoing fees.

2. RAC / RAC (Reduced Accommodation Contribution)

You may hear providers refer to RAC or RAC/RAC residents. This typically means:

Reduced Accommodation Contribution

This category applies to people who:

• Do not have enough assets or income to pay the full accommodation price

• But do not qualify for full government support

In this situation:

• The government pays part of the accommodation cost

• The resident contributes a smaller, capped amount

This category often applies to people with modest savings or a partially owned home.

3. Full Support Residents

A full-support resident is someone who:

• Has very limited assets and income

• Meets government thresholds after financial assessment

For full-support residents:

✅ The government pays the accommodation cost✅ The resident does not pay RAD or DAP✅ They may still pay:

• Basic daily fee (linked to the Age Pension)

• Means-tested care fee (if applicable, though often minimal)

This ensures aged care remains accessible regardless of financial situation.

4. Other Fees to Be Aware Of

Regardless of category, most residents pay:

Basic Daily Fee

• Covers meals, cleaning, laundry, utilities

• Set nationally (around 85% of the Age Pension)

Means-Tested Care Fee

• Based on income and assets

• Helps fund personal and clinical care

• Subject to annual and lifetime caps

Additional Services Fees (optional)

• Higher-end rooms

• Lifestyle programs

• Premium food or entertainment packages

5. Why the Financial Assessment Matters

Your Centrelink or Veterans’ Affairs financial assessment determines:

• Whether you pay RAD/DAP

• Whether you qualify for RAC

• Whether you are full support

• Your means-tested care fee amount

Getting this assessment early can prevent delays in placement decisions.

6. How Aged Care Simplified Can Help

As an aged care consultancy and placement broker service, Aged Care Simplified supports families through both the financial and practical aspects of moving into residential aged care.

We can assist with:

Understanding Costs Before You Commit

• Explaining RAD, DAP, RAC and full-support eligibility in plain language

• Reviewing provider pricing and contracts

• Helping you compare financial options (lump sum vs daily payments)

Navigating the Assessment Process

• Guidance with My Aged Care applications and next steps

• Preparing for financial assessments with Services Australia

• Identifying potential eligibility for government assistance

Finding the Right Facility

• Matching care needs, location preferences, and budget

• Shortlisting suitable providers with availability

• Coordinating tours and communication with facilities

Reducing Stress During Urgent Placements

• Hospital discharge planning support

• Fast-tracking placement options where possible

• Acting as a single point of contact for families

Advocacy and Ongoing Support

• Asking the right questions on your behalf

• Reviewing agreements before signing

• Supporting transitions into care

Our goal is to simplify complex decisions, reduce overwhelm, and help families feel confident that they are making the right choice — financially and emotionally.

7. Key Takeaway

Think of residential aged care funding as three broad categories:

Category	Who Pays Accommodation	Resident Contribution
Full RAD/DAP	Resident	Full amount
RAC (Reduced)	Government + Resident	Partial
Full Support	Government	None

8. Need Personalised Guidance?

Every financial situation is different, and small details can significantly impact costs.

If you’d like help understanding options for yourself or a loved one, Aged Care Simplified is here to guide you through the process — from first questions to successful placement.