Is the RAD price negotiable?

The Short Answer

Yes, you can try. The RAD price published on My Aged Care is the maximum the facility can charge — not a fixed price. Facilities can and do accept lower amounts, particularly when they have empty beds or the room is less desirable.

However, negotiation is not guaranteed to succeed. High-demand facilities with waitlists have no incentive to reduce their price. The key is understanding when you have leverage and what else can be negotiated beyond the headline RAD figure.

How RAD Pricing Works

Every approved residential aged care provider must publish their RAD prices on the My Aged Care website. These prices are:

• Set by the facility, not the government. There is no regulated maximum — facilities choose their own pricing based on location, quality, competition, and market conditions.
• Published as maximums. The listed price is the most the facility can charge for that room type. They can accept less, but not more.
• Room-type specific. Different room types (single, shared, premium) have different published RADs. A facility might list $350,000 for a standard single room and $500,000 for a premium suite.
• Updated periodically. Facilities can change their published RAD prices, but existing residents are not affected by increases — the RAD agreed at admission remains fixed for the duration of their stay.

Published vs Actual Prices

There is often a gap between the published (maximum) RAD and the amount actually agreed upon. This happens because:

• Empty beds cost money. An unfilled room generates zero revenue for the facility. Accepting a lower RAD (or a DAP-heavy combination) is better than an empty bed.
• Not all rooms are equal. A room near the nurses’ station, facing a car park, or on a shared corridor may not command the same price as one with a garden view and private bathroom.
• Market dynamics. In areas with multiple facilities competing for residents (many outer suburban and regional areas), prices face downward pressure.

The government does not publish data on actual vs published RAD prices, so there is no official measure of the “discount” rate. Anecdotal evidence from financial advisers suggests that 10–20% of admissions involve a RAD below the published maximum, though this varies significantly by region and facility type.

When You Have Leverage

Your negotiating position is strongest when:

• The facility has vacancies. Check the My Aged Care website or ask directly. If a facility has multiple empty rooms, they are more motivated to fill them.
• You are paying the full RAD upfront. Facilities prefer a lump-sum RAD because they can use the capital immediately. A resident offering $300,000 in cash is more attractive than one paying entirely via DAP.
• There are multiple competing facilities nearby. If you have realistic alternatives, the facility knows you can walk away.
• The room is less desirable. Smaller rooms, shared rooms, rooms without ensuites, or rooms in older wings may be more negotiable.
• Off-peak timing. Some facilities have seasonal patterns in admissions. Asking about availability during quieter periods may yield better outcomes.

What You Can Negotiate

Beyond the headline RAD amount, there are other aspects of the accommodation arrangement that may be negotiable:

• Room allocation. Even within the same published RAD price, you may be able to negotiate which specific room you are allocated — garden view vs corridor, larger vs smaller.
• Extra service inclusions. Some facilities bundle extra services (Foxtel, newspapers, premium meals) at an additional cost. You may be able to negotiate some of these as included.
• Payment timing. While the RAD must be finalised within 28 days of admission, you may be able to negotiate a brief extension if you are waiting on a property sale or financial assessment.
• Trial period arrangements. Some facilities offer a short respite stay as a trial before committing to permanent admission. This gives you time to assess the facility before locking in the RAD.

What you cannot negotiate

• Basic daily fee: Set by the government — same for every resident at every facility.
• Means-tested care fee: Calculated by Services Australia based on your financial assessment — the facility has no control over this.
• The right to choose RAD, DAP, or combination: This is your legal right under the Aged Care Act. A facility cannot insist on a lump-sum RAD or refuse the DAP option.

Low-Means Residents

If your parent is assessed as a low-means resident (assets below approximately $76,000 for a single person), the RAD negotiation question is largely irrelevant. Low-means residents:

• Are not required to pay a full RAD. Instead, the government sets a maximum accommodation supplement paid to the facility.
• May be asked to pay a daily accommodation contribution (a smaller daily amount based on their means), but this is capped and set by the government, not the facility.
• Cannot be refused admission on the basis of their financial status — facilities receiving government subsidies must accept a proportion of low-means residents.

Comparing Facilities on Value

Rather than negotiating a single facility down, comparing multiple options often yields better value. When comparing:

• Compare total cost, not just the RAD. A facility with a $300,000 RAD and $20/day in extra service fees may cost more overall than one with a $350,000 RAD and no extra fees.
• Check the star ratings. A lower-priced facility with poor star ratings may not be good value at any price.
• Consider the DAP equivalent. If you are considering DAP, compare the daily cost across facilities. A $400,000 RAD at 8.34% MPIR = $91.40/day in DAP; a $300,000 RAD = $68.55/day.
• Factor in location. A facility closer to family (enabling more frequent visits) may be worth a premium over a cheaper facility far away.

Our RAD vs DAP calculator can help you compare the long-term cost of different accommodation arrangements.

Practical Negotiation Tips

• Ask directly. Simply asking “Is this the best price you can offer for this room?” or “Do you offer any flexibility on the RAD?” is often enough. The worst they can say is no.
• Visit multiple facilities. Having a genuine alternative strengthens your position and gives you a realistic benchmark for comparison.
• Don’t rush. Unless there is a medical emergency requiring immediate placement, take time to compare options. Facilities know that urgent placements are less likely to negotiate.
• Ask about the specific room. If a particular room has been vacant for a while, the facility may be more flexible on that room than their overall published price suggests.
• Consider timing your offer. End of financial year, end of quarter, and periods after an increase in published prices can sometimes be better times to negotiate, as facilities may have occupancy targets.
• Get it in writing. Any agreed RAD amount below the published price should be clearly stated in the residential agreement before you sign.
• Don’t let negotiation delay good care. While saving money is important, the primary goal is finding the right facility for your loved one. A $20,000 saving on the RAD is meaningless if the quality of care is poor.