Aged care providers are taking up the opportunity to increase their Refundable Accommodation Deposit (RAD)s after the maximum amount was increased from $550,000 to $750,000 as of 1 January 2025.

Data provided by aged care advisers Mirus shows 934 aged care homes – 36% of the nation's aged care facilities – have increased at least one price beyond $550,000 since the beginning of the year.

However, the average RAD was sitting at $572,489 at the end of July 2025, up only 8.7% from $526,859 as of 31 December 2024.

Mirus' Data Scientist Tyler Fisher has told The Weekly SOURCE that recent changes in advertised pricing suggest many providers are actively working to recover the costs associated with accommodation and non-care services.

However, he said some providers continue to operate at a loss, "particularly those with older facilities that cannot justify price increases without risking market competitiveness. This highlights a broader challenge which is balancing affordability for consumers with the need to attract sufficient capital investment to maintain and upgrade infrastructure."

In total, 1,325 aged care homes – just over half all homes in Australia – have increased their highest RAD since 31 December 2024.

Only 155 homes – or 6% – have raised at least one price beyond $750,000 since 31 December 2024, which requires approval from the Independent Health and Aged Care Pricing Authority (IHACPA).

When the new Aged Care Act is implemented from 1 November 2025, aged care providers will be able to retain 2% of RADs for up to five years. From 1 June 2025, RADs are indexed annually to the Consumer Price Index (CPI).