3. Accommodation Payment
The maximum Accommodation Payment is $850,000 (as at 5/7/18).
The Accommodation Payment may be in the form of
– a RAD (Refundable Accommodation Deposit) or RAC (Refundable Accommodation Contribution for DHS assessed low asset residents); or
– a DAP (Daily Accommodation Payment) or DAC (Daily Accommodation Contribution for DHS assessed low asset residents) – calculated on the unpaid portion of the RAD/RAC at the DHS advised interest rate *applicable on admission; or
– a combination of a RAD and DAP (or RAC and DAC) as selected by the Resident, with the provision that the maximum RAD payable cannot be more than total assessable assets less $51,000 as at 20 March 2021.
The DAP is invoiced monthly in advance with the balance of fees due. A DAP may be deducted from your RAD (lump sum paid) in order to meet your agreed amount of accommodation payment; this option will monthly
– reduce your refundable lump sum balance; and
– increase the calculation base for your DAP (that is, the unpaid portion of your RAD) by this reduction amount — effectively a compound interest scenario.
Fairway also accepts at least 18.2% low asset residents. Prospective low asset residents must submit the form specified in item 2 above prior to entry and include the DHS response letter with their application.
*The interest rate used in the calculation of the DAP portion of an Accommodation Payment is set by the government as at the admission date. From 20/03/2021 this rate is 4.02%.