Average RAD rose higher than home prices: Mirus

About 56% of aged care homes have Refundable Accommodation Deposits (RADs) above $550,00, according to the latest data from aged care consultants Mirus.

The former threshold that required Independent Health and Aged Care Pricing Authority (IHACPA) approval jumped from $550,000 to $750,000 on 1 January 2025 - a recommendation of the Aged Care Taskforce's Final Report and prior to that the 2017 Tune Review.

The change triggered a surge in RAD increases, allowing aged care operators to link their prices more closely to broader property market moves.

Nearly one-third - 32% - of aged care homes increased RADs from at or below $550,000 in 2025, joining the 24% that already had pricing above the former threshold, Mirus Data Scientist, Tyler Fisher, told The Weekly SOURCE.

"There is still scope for growth in accommodation revenue," Tyler said. "Many providers are still struggling to make end meets in recovering the costs of accommodation and hotel services."

Nationally, 75% of aged care homes put up some or all of their prices in 2025, suggesting that providers are aligning their pricing to rising property markets to some degree.

Average RADs rose 12% in 2025 to $588,575 as of 31 December 2025, ahead of home prices which gained 8.6% according to property data analyst Cotality.  

In 2025, more than 2,200 facilities increased their highest advertised price and over 2,400 facilities increased their lowest price.

However, the pace of RAD rises is easing, as shown by the main chart.

Looking ahead, the upward trend for RADs is likely to continue as providers "monitor consumer sentiment and shift to new service delivery models and cost recovery structures", Mirus said.