What Is the Daily Accommodation Payment (DAP)?‍

The Daily Accommodation Payment (DAP) is a "rent-like" daily fee paid by individuals in Australia who are receiving permanent residential aged care. It is one of the ways to cover the cost of accommodation in an aged care home.

Who Pays DAP?‍

You’ll need to pay DAP if:

• You’re moving into permanent aged care (not short-term stays).
• Your income or assets are above a certain level (the government checks this through a “means test”).

If your finances are below that level, the government covers your accommodation costs. If you’re above it, you’ll chip in. Think of it like splitting a pizza—everyone pays based on how much they can afford.

How Is DAP Calculated?‍

The government does the heavy lifting here. They’ll look at:

• Your income (pensions, investments, etc.).
• Your assets (savings, property, cars—though your family home might be excluded in some cases).

After crunching the numbers, they’ll send you a letter with your DAP amount. The maximum daily rate is set yearly (around $63 per day in 2024, but this changes). You might pay less—or even zero—if your finances are tight.

How Do You Pay DAP?.‍

You’ve got choices, like picking between toast or cereal for breakfast:

1. Daily payments: Small, regular deductions from your income.
2. Lump sum: Pay a larger amount upfront (called a Refundable Accommodation Deposit or RAD). This lowers your daily fees—like paying for a year’s gym membership upfront to save cash.
3. Mix and match: Combine daily payments with a partial lump sum.

Your aged care home will walk you through the options. For tricky questions, a financial advisor can help (they’re like GPS for money decisions).

What Does DAP Cover?‍

Your DAP pays for:

• Your room (private or shared).
• Utilities (electricity, water, heating).
• Maintenance (so the roof doesn’t leak during rainy season).

It doesn’t cover:

• Daily living costs (meals, laundry—these are separate fees).
• Extras like premium TV channels or salon visits.

How to Estimate Your DAP‍

se the government’s Fee Estimator tool online (it’s free and user-friendly).

1. Call Services Australia or visit a local office.
2. Ask your aged care home for a simple cost breakdown.

Pro tip: Selling your home or using savings often covers lump sums. But don’t rush—take time to weigh your options.

Final Thoughts‍

DAP might feel as confusing as assembling a BBQ grill without instructions, but it’s just a way to keep aged care affordable for everyone. Whether you pay a little, a lot, or nothing, the goal is the same: a safe, comfortable place to call home. If the numbers make your head spin, take a breath. Help is out there—you don’t have to figure this out alone. After all, your later years should be about enjoying life, not stressing over bills.

Frequently Asked Questions

What is the Daily Accommodation Payment (DAP)?

The Daily Accommodation Payment (DAP) is a "rent-like" daily fee paid by individuals in Australia who are receiving permanent residential aged care. It is one of the ways to cover the cost of accommodation in an aged care home.

Who is required to pay the DAP?

You will need to pay the DAP if you are moving into permanent aged care and your income or assets are above a certain level, which is determined by a government "means test." If your finances are below that level, the government will cover your accommodation costs.

How is the DAP amount calculated?

The government calculates the DAP by looking at your income (pensions, investments, etc.) and your assets (savings, property, cars, though your family home might be excluded in some cases). After a calculation is done, you will receive a letter with your specific DAP amount, which may be less than the maximum daily rate.

What payment options are available for the DAP?

You have several choices for paying the DAP: small, regular daily payments; a lump sum payment called a Refundable Accommodation Deposit (RAD), which lowers the daily fees; or a mix-and-match option that combines daily payments with a partial lump sum. Your aged care home can walk you through these options.

What does the Daily Accommodation Payment cover?

Your DAP covers the cost of your room (private or shared), utilities (electricity, water, heating), and maintenance of the facility. It does not cover daily living costs like meals and laundry, or extras such as premium TV channels or salon visits.