A daily accommodation payment can look fixed when an aged-care home first quotes it. For residents covered by the accommodation arrangements commencing on 1 November 2025, however, the Australian Government requires applicable DAPs to be indexed on 20 March and 20 September each year. A family comparing rooms therefore needs more than today’s daily figure: it needs the agreed accommodation price, the payment mix, the resident’s reference indexation day and a method for checking later statements.
Indexation does not make every aged-care charge rise on those dates. It applies to eligible DAPs, not daily accommodation contributions, and the transitional rules depend on when the person first entered residential care and which fee arrangements apply. Confirm the resident’s category before building a budget.
Establish whether DAP indexation applies
Ask the provider to identify the accommodation arrangements in writing. The official guidance includes people entering an aged-care home on or after 1 November 2025 under the new arrangements. It can also include a person under the older fee arrangements who first entered residential care after 31 October 2025, or who re-entered after a break of more than 28 days.
Do not infer the answer from the invoice layout. A resident remaining under the 1 July 2014 accommodation arrangements may pay a DAP without that DAP being indexed. Record the entry history, any break in care and any election into newer arrangements.
Mark the two indexation dates
Applicable DAPs are indexed on 20 March and 20 September. The provider must use the published index value and cannot substitute another rate or apply indexation on a different day. Put both dates into a twelve-month cash-flow comparison rather than multiplying the entry-day DAP by 365.
The reference indexation day is normally the 20 March or 20 September immediately before entry. A voluntary room move can reset that reference day. Ask how an offered room transfer would affect both the accommodation price and the reference used for future indexation.
Separate the agreed price from the daily payment
The agreed accommodation price is commonly expressed as a refundable accommodation deposit. The maximum possible DAP at the price agreement day is calculated from that price and the maximum permissible interest rate, divided by 365. Indexation then adjusts the DAP under the statutory formula; it is not permission to rewrite the agreed room price at will.
Request a quote showing the room price, price agreement date, MPIR used, starting DAP and whether the figure is before or after any RAD. A single daily total without those inputs is difficult to audit.
Recalculate a mixed RAD and DAP arrangement
Many residents pay part of the accommodation price as a RAD and the rest as a DAP. The provider must adjust the indexed DAP for the RAD amount. The official method also accounts for relevant retention deductions when determining the proportion effectively covered by the deposit.
For comparison, ask each home to model the same three scenarios: no RAD, the family’s realistic RAD, and a higher RAD that preserves an emergency cash reserve. Compare the resulting daily payment after the next two indexation dates, not only on admission day.
Audit the first statement after each change
Keep the accommodation agreement, deposit receipts and the provider’s notice of change. On the first statement after 20 March or 20 September, identify the old DAP, new index number, reference index number, indexation factor, RAD balance and effective date. A voluntary room move or RAD top-up should also be visible in the calculation.
If the provider cannot reproduce the amount, request a written calculation before assuming the statement is correct. A rounding difference can be legitimate, but an unexplained new rate or wrong effective date requires clarification.
Compare the whole cost of admission
DAP indexation is only one line. Add the basic daily fee, means-tested care fee if applicable, higher everyday living or other agreed charges, pharmacy, allied health, transport and personal spending. Model a 30-day month and a 31-day month, plus the initial period when moving and family travel may create extra costs.
Ask which charges are optional and how they can be cancelled. Do not trade away liquidity for a larger RAD without considering medical, legal and relocation expenses.
Check care fit before reserving the room
Send the home current information on mobility, cognition, behaviour, continence, nutrition, medication, wounds, equipment and night support. Ask who completes the admission assessment and when acceptance becomes final. A published room price or indicative vacancy does not prove that the provider can accept the person’s care profile.
Keep at least one alternative open until the assessment, written offer, accommodation agreement and entry date align. Urgency should shorten the checklist, not remove it.
Ask how advisers and placement services are paid
A placement service may charge the family, receive a provider referral fee, or use both models. Ask who pays, whether remuneration differs by home and whether non-paying providers were considered. The room recommendation should be explained through care fit, total cost, contract terms and verified availability.
Obtain the provider’s own quote. An adviser’s spreadsheet is useful for comparison but should not replace the agreement or the provider’s indexed calculation.
Use Curalune to structure the decision
Curalune’s option-selection service can organise homes by care fit, room price, proposed RAD/DAP mix and questions still requiring confirmation. The fuller contact service can ask selected providers about current availability, assessment, written costs and the applicable accommodation arrangements.
Curalune does not guarantee availability, admission, funding outcomes or a future DAP amount. Providers and the relevant authorities make those decisions, and published index values may change the payment.
Prepare a short pre-signing file
Place the assessment summary, fee-arrangement category, room price, MPIR, RAD plan, DAP calculation, indexation dates, optional charges and exit terms in one file. Add the name of the person who confirmed each item and the date. This turns later statement checking into a factual comparison instead of a memory dispute.
Frequently asked questions
Does every DAP increase twice a year?
No. Indexation depends on the resident’s accommodation arrangements and entry history. Confirm applicability in writing.
Are daily accommodation contributions indexed too?
No. The Department states that DAP indexation does not apply to DACs.
Can the provider index on another date?
No. Applicable changes use the published value on 20 March and 20 September.
Does Curalune guarantee a room or the calculated payment?
No. Curalune can support comparison and contact, but cannot guarantee availability, admission or future charges.