Australian aged care providers have raised their Refundable Accommodation Deposits (RADs) by an average of 8.7% so far in 2025, according to new data from Mirus Australia. The widespread price hikes follow the 1 January increase to the maximum permissible RAD, which jumped from $550,000 to $750,000, triggering a notable shift in accommodation pricing strategy.
More than 1,200 residential aged care providers have increased their highest advertised RAD, while a similar number have lifted their lowest price points, signalling a broad recalibration across the sector.
“After several years of pricing stability, we’re now seeing providers recalibrate their accommodation pricing in response to the expanded RAD ceiling,” said Rob Covino, Founder and Managing Director of Mirus Australia.
“This is a significant moment in the market. But pricing is only part of the story—value perception is critical. Successful providers align pricing with real improvements, like refurbished rooms and premium offerings,” Mr Covino added.
The data also reveals strategic repositioning within the sector. Over 80 providers have reduced their highest RADs this year, while more than 280 have simplified their offerings by reducing the number of unique price points.
“There’s a strategic tension at play—pricing up where there’s demand and quality, while still needing to remain accessible in markets where affordability is under pressure.”
Tyler Fisher, Data Scientist, Mirus Australia
The delay of the new Aged Care Act, originally due to take effect from 1 July (now 1 November), has added to the uncertainty. Some providers may now pause further pricing changes until regulatory settings are clearer.
“RAD pricing is one of the few strategic levers providers have,” said Mr Covino. “But with that comes the obligation to deliver clear value to residents and their families.”
