In the nine months from 12 August 2022 to 30 April 2023, 8,282 rooms were approved across the nation to charge a RAD above the maximum $550,000, an IHACPA spokesperson told The SOURCE.

With approximately 192,000 residential aged care residents, that’s only 5% of residents who will be living in a room paying more than the set minimum.

The $550,000 limit was set back in 2014. Were that figure to be adjusted for inflation, it would sit at $647,000 today, and there are growing voices from within the sector for the figure to be adjusted.

Professor David Tune (now the Chir of IHACPA), in his 2017 Tune Review of the aged care sector, recommended RADs be increased to $750,000, but the recommendation was not taken up.

Approvals are currently occurring within the legislated 60-day approval period, from receipt of a complete application to notifying the applicant of the decision.

IHACPA is only able to provide data from 12 August 2022 when they took over the approval function from the Office of the Aged Care Pricing Commissioner.

The SOURCE: The $550,000 RAD limit was set in 2014. Increasing it is a no brainer.