There has been a notable shift in accommodation pricing strategy following the 1 January 2025 increase in the maximum Refundable Accommodation Deposit (RAD) from $550,000 to $750,000, according to aged care advisors Mirus.
In this calendar year, RADs have increased an average of 8.7%, based on pricing activity across the approximately 2,500 aged care homes in Mirus' analysis.
More than 1,200 providers increased their highest advertised RAD, and nearly 1,200 lifted their lowest price points.
"This is a significant moment in the market. However, pricing is only part of the story—value perception is critical. The providers that are most successful are those aligning pricing strategies with genuine value through refurbished facilities, premium offerings, and clear differentiation," said Mirus Data Scientist, Tyler Fisher (pictured right).
There is evidence providers are tactically repositioning their pricing. So far this calendar year more than 80 providers have reduced their highest RADs and more than 280 providers have consolidated their pricing by reducing the number of RAD price points.
"While some of these pricing adjustments are a response to broader market shifts, others reflect a more nuanced, localised approach to remain competitive or reposition underperforming rooms," Tyler said.
"RAD pricing is one of the few levers providers have in a tightly regulated environment — but with that comes responsibility. Residents and their families will expect to see value in return."
