Clear, honest pricing — and the choice of how to pay
Understanding the cost of residential aged care shouldn't be stressful. Here's a plain-English guide to how accommodation costs work at Paradise Lakes — and the different ways you can pay, so you can choose what suits your family.
Three ways to pay for your room
Every resident agrees a price for their room. How you pay that price is up to you — as a refundable lump sum, as a daily payment, or a mix of the two.
Refundable deposit (RAD)
A single lump sum towards your room. The balance is refundable when you leave.
- Returned to you or your estate on leaving
- Government-guaranteed
- Retention amount applies (see below)
Daily payment (DAP)
Keep your capital and pay for your room as a regular daily amount instead.
- No large lump sum required
- Based on a government-set interest rate
- Not refundable
A combination
Pay part as a deposit and the rest as a daily payment — whatever balance works for you.
- Flexible split of deposit and daily payment
- Adjust the mix over time
- Popular with many families
The choice is yours
How you pay is your decision — we will never require you to pay a lump sum. Once a place is offered and you've agreed your room price, you'll have time to decide (generally 28 days after moving in), and you're free to change the balance between a deposit and a daily payment later on.
About the refundable deposit (RAD)
A refundable accommodation deposit is a lump sum towards the cost of your room. The balance is refundable — it's returned to you, or to your estate, when you leave our care, less any amounts you've agreed to have deducted and any retention amount. Refunds are made within the timeframes set by law (generally within 14 days of leaving, or of a grant of probate).
Your deposit is protected. Deposits paid to approved providers like Paradise Lakes are guaranteed by the Australian Government under the Accommodation Payment Guarantee Scheme, so your money is safe even in the unlikely event a provider fails.
About the daily payment (DAP)
Prefer to keep your capital? You can pay for your room as a regular daily amount instead. The daily payment is worked out by applying a government-set interest rate — the Maximum Permissible Interest Rate (MPIR) — to your agreed room price. The rate that applies to you is fixed on the day you agree your price.
A daily payment is not refundable, and for residents entering from 1 November 2025 it is adjusted (indexed) twice a year in line with the cost of living.
Mixing both
You don't have to choose one or the other. Many families pay part of the room price as a deposit and the rest as a daily payment — and paying more towards the deposit later will reduce the daily amount.
What you'll actually pay depends on your circumstances
Whether you contribute to your accommodation cost — and how much — depends on an assessment of your income and assets carried out by Services Australia, not by us. Some residents are fully supported by the Government and pay nothing towards accommodation; others pay an agreed price up to our published room price.
Alongside accommodation, most residents also pay a basic daily fee (a set percentage of the age pension, and the same across every aged care home) and, depending on the same assessment, may pay a contribution towards their care. These amounts are set by the Government — we simply apply them.
Our room price
as a refundable deposit — or the equivalent as a daily payment, or a combination of both.
Your exact price and the equivalent daily payment are set out in your Accommodation Agreement. We're always happy to provide current figures and a worked example for your situation.
A note on advice
This page is general information only. It isn't financial or legal advice; aged care rules and amounts change, and everyone's situation is different. We'd encourage you to speak with an independent financial adviser who specialises in aged care before making decisions — and we're always glad to sit down with you and your family to walk through what it means for you. You'll also find independent guidance at myagedcare.gov.au.
Common questions about paying for care
Do I have to pay a lump sum?
No. Paying by a refundable lump sum is one option, but you can pay a daily amount, or a combination — the choice is yours, and we'll never require a lump sum.
Is my deposit safe?
Yes. Refundable deposits paid to approved providers are guaranteed by the Australian Government, so your money is protected even in the unlikely event a provider fails.
Is the whole deposit refunded?
The balance is refunded to you or your estate when you leave, less any amounts you agree to have deducted. For residents entering care from 1 November 2025, a retention amount (currently 2% a year, for up to five years) is also deducted and isn't refunded.
When do I have to decide how to pay?
After a place is offered and you've agreed your room price, you generally have 28 days from moving in to decide — and you can change the mix between a deposit and a daily payment over time.
How is the daily payment calculated?
It's based on a government-set interest rate (the MPIR) applied to your agreed room price, fixed on the day you agree your price.
Planning ahead for a loved one?
The best time to understand your options is before you need a place. Join our waitlist and we'll help you plan — with no obligation.