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02 9136 3000


    Residential CareHome Care

    11 Gelibolu Parade
    Auburn NSW 2144, Australia

    Secure Your Loved One’s Future: Understanding the RAD Model

    In our fast-paced, ever-evolving world, the health and wellbeing of our elderly parents, grandparents and beloved elders weigh heavily on our hearts. 


    We all want to provide them with the best possible support and care, especially as they navigate this vulnerable stage of their lives. But while many of us strive to care for our elders within our own homes, various factors can make this challenging or impractical. 


    That’s where aged care homes step in, providing a dedicated environment designed to meet the unique needs of seniors from all walks of life. These homes offer specialised care services that may not be feasible within a private residence. Employing trained professionals who possess the expertise and experience to provide round-the-clock care, ensuring the safety, comfort and dignity of the elders in their care. 


    But how do you secure a suitable aged care accommodation for your elderly loved one? One option is through a Refundable Accommodation Deposit (RAD). RADs introduce a unique approach to funding aged care, offering flexibility and security for individuals and families seeking aged care accommodation.


    What is the RAD Model? 


    The RAD model, which stands for Refundable Accommodation Deposit, is a financing model used in the Australian aged care system. It is an upfront, lump-sum payment made by individuals or their families to secure a place in an aged care home. When the resident leaves the aged care facility or passes away, the full amount of the RAD is returned to them, their family or their estate. 


    The amount of the RAD is determined by the aged care home within the limits set by the Australian Government’s Aged Care Pricing Commissioner. RAD amounts can vary widely, ranging from $100,000 to over $1,000,000, with most falling between $300,000 and $600,000.


    It’s important to consider that paying a full RAD can be a significant financial commitment for some individuals and their families and requires careful consideration of personal circumstances. This includes available funds, financial stability and long-term financial planning. 


    However, despite the financial commitment involved, there are also significant advantages to paying a RAD, including long-term benefits for the resident and their family.



    The Benefits of RADs

    The RAD model can offer individuals and families a beneficial solution for financing their aged care accommodation, securing quality care that suits their needs and provides peace of mind.

    Interest-Free Loan

    The RAD operates as an interest-free loan to the aged care provider. This means that individuals do not incur any additional costs or interest charges on the amount they have paid. The interest-free nature of the RAD ensures that the full amount is available for refund when it is due.

    Financial Flexibility 

    The RAD model also provides individuals with the flexibility to choose how they finance their aged care accommodation. They have the option to pay the full RAD amount upfront or opt for a combination of a smaller RAD and Daily Accommodation Payments (DAPs). DAPs are non-refundable daily fees that contribute to the cost of accommodation and care. This allows individuals to tailor their payment approach based on their financial circumstances and preferences.


    Freedom of Choice 

    With government-funded aged care, the allocation of beds and the specific facilities available may be limited and dependent on availability. In contrast, the RAD model allows individuals to choose their preferred aged care home based on their specific needs, preferences and cultural considerations. 

    Potential Saving Costs

    Paying a RAD upfront can also result in lower ongoing expenses, as it minimises or even eliminates the need for DAPs. By paying the full RAD amount, residents can enjoy the benefit of reduced or waived DAPs, thereby reducing their ongoing financial commitments.

    Guaranteed Repayment

    The Australian Government guarantees the repayment of the RAD. This means that individuals or families can have confidence in receiving the refundable amount when they or their family member leave the aged care home or in the event of their passing. 


    Ultimately, the RAD model at Gallipoli Home offers individuals and families the opportunity to secure aged care accommodation, providing peace of mind and the assurance of a guaranteed refund in the future. 


    When you choose to secure accommodation at Gallipoli home through the RAD model you make more than a financial decision, you put a heartfelt investment for the well-being and happiness of your loved ones.


    We are an aged care home dedicated to providing compassionate and culturally sensitive care that celebrates diversity and supports the holistic needs of our elders. Providing a nurturing environment where your loved ones can thrive, embrace their cultural heritage and be part of a warm and inclusive community.


    To learn more about applying for RAD at Gallipoli Home, please visit our website: [insert link to landing page]