NursingHomes.com.au


Contact

NursingHomes.com.au




MPIR increased to 8.38% pa

The Maximum Permissible Interest Rate (MPIR) has increased to 8.38% pa from

For a Refundable Accommodation Deposit (RAD) of $550,000 the equivalent Daily Accommodation Payment (DAP) increases to $126.27 pd ($46,090 pa).

The Reserve Bank increased the cash rate again in November 2023, which has a flow-on impact to the MPIR. This is now the highest MPIR since January 2012 and more than double the MPIR that applied just a little over one year ago.

Also the refurbished Daily Accommodation Contribution (DAC) rate of $66.94 pd means an equivalent Refundable Accommodation Contribution (RAC) of $291,564. In June 2022 the RAC was $544,719, meaning that aged care homes that are “RAD-focused” are now less likely to look at fully supported residents if they have exceeded their 40% supported ratio, as the RAC has now dropped below $300,000.

The MPIR increase to 8.38% will have a major impact on residents as they enter an aged care home from

More about RAD DAP MPIR ...

Need to discuss aged care fees? Contact Us