What is an accommodation agreement? 8.3

Accommodation agreement

The Accommodation Agreement is a legal agreement between you and the aged care home (nursing home) which sets out the accommodation costs you will be expected to pay and how you agree to pay them.



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 You only make this agreement if you need to contribute to the cost of your accommodation.  See 4.2 The main costs of going into an aged care home

If you are not contributing to your accommodation costs, you will not be asked to sign an Accommodation Agreement.


What should the Accommodation Agreement include?

The Accommodation Agreement should clearly identify the following things:

  • The price you have agreed to pay the home for your accommodation.
  • Details on the three payment options you can choose from to pay the accommodation price:
    1.) the lump-sum amount – the Refundable Accommodation Deposit (RAD) 
    2.) the rental-type payment amount – the Daily Accommodation Payment (DAP)
    3.) combined payment amounts, such as 50 per cent payment by lump-sum and 50 per cent rental-type payment amount
  • Other conditions of your accommodation payment, including, if applicable, the refund amount of your lump sum balance if you leave or die or interest rates charged.
  • Any extra service costs for higher standard accommodation, meals and services, which the home can provide at additional cost.
  • The specific accommodation you will be provided with – single or shared room, ensuite or shared bathroom.
  • Any services that your accommodation payment entitles you to receive.


  • The conditions relating to moving rooms.