Will the government keep any part of my RAD when I leave the facility?

Financials, Fees & Funding
Accommodation Payments
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In short...
For residents under the 1 November 2025 accommodation arrangements, the provider may retain 2% a year from the RAD or RAC balance for up to five years. The remaining refundable balance is returned when the person leaves or dies, after allowable deductions.
The details...
The statement that a RAD is always returned in full is no longer correct for every new resident. From 1 November 2025, RAD and RAC retention applies to many people entering under the new accommodation arrangements. The deduction is calculated daily at 2% a year and stops after five years.
The provider, not the government, makes the permitted retention deductions. Older residents who remain under previous accommodation arrangements may not be subject to retention.
What should I do next?
Ask the home to confirm in writing whether retention applies, show the estimated deductions and explain the refund process.
Helpful Local Home Help resources
Takeaways
- Some newer RAD balances are subject to retention.
- The current rate is 2% a year for up to five years.
- Older arrangements may be protected.
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Our independence Local Home Help is designed to help families navigate the often confusing world of home support and aged care services. The platform aims to present information in a clear and balanced way so families can better understand the types of help available and where to find it. While providers may appear on the platform, Local Home Help does not recommend one provider over another. The decision about which service may be suitable will always depend on individual circumstances. Families are encouraged to contact providers directly, ask questions and make their own enquiries before making a decision. Our focus is to make the process of understanding and finding support at home easier. Local Home Help does not accept payment of any kind in exchange for provider visibility, ranking, or shortlist placement, and never will. Any future revenue Local Home Help generates will come from sources entirely separate from how providers are matched to consumers.
Quality Signals
What to look for when choosing a provider ​ Finding the right support service can take time. When considering a provider, families may wish to look for signs of quality such as: Clear information about services offered Transparent pricing or funding options Experience supporting older people at home Relevant professional qualifications where appropriate Positive feedback or reputation in the community Willingness to answer questions about care and services It is often helpful to speak with more than one provider before making a decision. Local Home Help aims to provide a starting point for exploring services, but the best choice will depend on the needs and preferences of the individual receiving support.
About the Author
Local Home Help Editorial Team
This article was created by Local Home Help to help Australian families better understand aged care and home support options in plain English.
Our content is based on publicly available information from:
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My Aged Care
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Department of Health, Disability and Ageing
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Aged Care Quality and Safety Commission
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Provider pricing schedules and operational experience within the aged care sector.
Local Home Help is an independent consumer information platform and does not provide medical, legal or financial advice.
Important information
Aged care rules, fees, eligibility requirements and program arrangements can change. The information on this page is general guidance only and may not apply to every person or situation.
Before making a financial, legal or care decision, check the latest information with My Aged Care, Services Australia, the Department of Health, Disability and Ageing, or another appropriate official source.
Local Home Help does not provide legal, financial, medical or clinical advice.
Source data
https://www.health.gov.au/our-work/residential-aged-care/charging/fee-and-accommodation-arrangements
Last reviewed
20/7/26, 9:08 pm