Moving permanently from one Australian residential aged-care home to another can create a cash-flow problem even when the resident has a large refundable accommodation deposit. The outgoing provider holds the RAD or RAC balance, while the incoming home may need an accommodation agreement and a payment decision. The refund date depends on the notice actually given, not simply on the day a family expects to move.
The Australian Department of Health, Disability and Ageing updated its official refund guidance on 10 April 2026. It distinguishes three timelines for a permanent move to another aged-care home. More than 14 days’ notice makes the balance due on departure. Up to 14 days’ notice makes it due within 14 days after notice. No notice makes it due within 14 days after departure.
Start with the notice, not the removal van
Record the date the outgoing provider receives notice and ask for written acknowledgement. A conversation with a staff member may not show when formal notice was received. State that the departure is permanent, identify the proposed departure date and request confirmation of the statutory refund day.
If the next home has not completed its assessment, avoid presenting a tentative date as an unconditional departure. Ask both providers what happens if the admission date changes. The aim is to keep the legal timeline accurate without giving away the current place before the next offer is reliable.
Apply the correct refund branch
With more than 14 days’ notice, the outgoing home must refund the lump-sum balance on the day the resident leaves. With 14 days or less, it must refund within 14 days after notice. If no notice is given, it has 14 days after departure. Put the applicable branch in the family calendar and request the provider’s calculation in writing.
These rules concern permanent movement to another aged-care home. A permanent exit from residential care for another destination uses a different 14-day rule. Death also has a separate trigger involving probate, letters of administration or other satisfactory evidence.
Identify the balance that is actually refundable
Refundable lump sums include RADs, RACs and older accommodation bonds. Ask for the opening balance, each authorised deduction, the balance on the proposed refund day and any interest. The official guidance says a provider may deduct only amounts authorised by the Aged Care Act 2024 before refunding a RAD or RAC.
Do not use the original deposit amount as the expected transfer amount without reconciliation. Fees or agreed deductions may have changed the balance. Conversely, a provider should not add an unexplained exit fee merely because a move is inconvenient.
Know when interest begins to matter
Interest may apply until the refund is paid. The base interest rate can apply from the day after permanent departure until the end of the legislated refund period. If payment is late, the maximum permissible interest rate can apply after the refund period ends. Both rates are updated quarterly, so a copied rate from an old example is not a safe assumption.
When more than 14 days’ notice is given for a move to another service, the refund is due on departure and the official guidance says the BIR does not apply; MPIR can apply from the next day if the refund remains unpaid. Ask the provider to identify the rate and days used rather than accepting a single interest figure.
Coordinate the incoming accommodation agreement
The next home’s room offer, care assessment and accommodation arrangement are separate from the outgoing refund. Ask for the advertised room price, the proposed RAD and DAP options, any combination payment, the date the room can be occupied and how long the offer remains open. Confirm which amounts are estimates and which have been accepted in writing.
Do not authorise an intermediary to promise the full outgoing balance before the reconciliation arrives. A safer plan uses the confirmed refundable balance and keeps a buffer for moving costs, overlapping personal expenses and timing differences.
Build a two-home cash-flow table
Create one row for notice received, departure, outgoing fee cut-off, statutory refund day, expected bank clearance, incoming admission and incoming payment due date. Add conservative and delayed scenarios. If a bridge payment may be needed, establish its source and cost before signing, rather than assuming relatives can cover it at short notice.
Ask whether the incoming provider allows an initial DAP or combination while the outgoing RAD is being returned. Any alternative must be documented in the accommodation agreement. The official page also notes that refunding part of a lump sum while the resident remains in care is not a legal requirement; it is a provider business decision requiring mutual agreement and a recorded change.
Compare the full offer, not only the RAD
For each candidate home, compare room type, published accommodation price, daily accommodation payment, care suitability, staffing, dementia support, allied health, location and additional service charges. Ask for a sample monthly statement and the conditions attached to optional packages.
A home with a lower RAD can still cost more if its optional or additional services are unsuitable. A home offering flexibility may be preferable if the outgoing refund date is uncertain, provided the resident’s care needs are met.
Admission steps that must stay explicit
Confirm the aged-care assessment and eligibility, clinical information, medication list, behavioural or mobility needs, room inspection, resident agreement, accommodation agreement and arrival arrangements. Ask who can give final admission approval and whether the offer depends on updated clinical information.
Availability can change between an enquiry and signed acceptance. Do not cancel the present place solely because a sales representative says a room is likely to open. Obtain a dated written offer and understand every condition.
Check commissions and referral conflicts
A placement service may receive a provider commission, charge the family, or do both. Ask which homes pay it, whether non-paying providers were considered and what triggers the fee. A commission does not prove that a room is vacant or clinically suitable.
Official refund rules should be checked against the government source and the resident’s agreements. A referral partner’s estimate is not the outgoing provider’s final balance or the incoming provider’s admission decision.
How Curalune can structure the move
Curalune’s option-selection service can organise homes by care fit, accommodation-price logic, refund timing and contract questions. The fuller contact service can prepare a consistent enquiry covering the room, assessment, admission conditions, RAD or DAP choices and deadline, then consolidate the responses.
Curalune does not guarantee availability, admission, a refund amount or a refund date. Providers and relevant authorities remain responsible for their decisions and statutory obligations.
Frequently asked questions
When is the RAD due if more than 14 days’ notice is given?
For a permanent move to another aged-care home, the official guidance says the refundable balance is due on the day the resident leaves.
What if only one week’s notice is given?
The provider must refund within 14 days after receiving the notice, subject to authorised deductions and the applicable law.
Can the outgoing home send the RAD directly to the new home?
Do not assume so. Confirm the authorised payee, banking instructions and both accommodation agreements in writing.
Can Curalune guarantee that the next room stays available?
No. Curalune can structure options and contacts but cannot guarantee a vacancy, clinical acceptance or admission.