How to pay a RAD

TL;DR Version RAD payments are usually large and require extra steps. Most common methods: Paid by a conveyancer during property settlement. Telegraphic transfer directly from your bank. Multiple smaller internet banking payments (if under $100,000/day limit). Occasionally via bank cheque or rare direct debit arrangements. Paperwork you’ll need: Bank statement showing the payment. Settlement statement if from house sale. RAD receipt from the aged care provider. Pro tip: A trip to the bank is often faster than trying to do it online.

How to Pay a Refundable Accommodation Deposit (RAD) – The Practical Steps

When you or a loved one enters permanent residential aged care, one of the biggest practical steps is arranging the payment of the Refundable Accommodation Deposit (RAD). This is often a large lump sum, usually paid from the sale of a property or accumulated savings. In this guide, we’ll show you the typical ways this payment is made and the paperwork you’ll need to satisfy Centrelink and the aged care facility.

Think of it like a house settlement

Paying a RAD is similar to buying a house — large sums are being moved, and it usually involves more than just clicking a few buttons in your online banking. In most cases, banks have special processes for transferring large sums securely. The process may involve a conveyancer, a banker, or both.

The Most Common Methods to Pay a RAD

✅ 1. Through a Conveyancer (Usually from House Sale Proceeds)

If you have just sold a property, it’s very common for the RAD to be paid directly at settlement. The conveyancer will:

Prepare a Settlement Statement (also called a Statement of Adjustments) which shows where every dollar from the house sale is going.
Distribute the funds — for example, paying the $500,000 RAD directly from the house sale proceeds.

This is often the smoothest option if you're selling a home, as the conveyancer manages the funds for you.

✅ 2. Direct from Your Bank

If you are paying from savings or after the house has settled:

Telegraphic Transfer (TT): This is like a supercharged bank transfer. The bank can arrange a TT to transfer large sums like $500,000 directly to the aged care facility’s account.
Internet Banking: Some clients have transaction limits up to $100,000 per day. In these cases, you may make multiple transfers across a few days to reach the required amount.
Bank Cheque: Some facilities accept a bank cheque, but this method is slower and less common nowadays.

💡 Pro Tip
Often, visiting the bank branch in person is the simplest. It may feel old-fashioned, but trying to get $500,000 released via online banking or over the phone can be more hassle than it’s worth. Many clients tell us it's faster just to go down and handle it face-to-face.

✅ 3. Some Facilities Offer Direct Debit (Rare)

A small number of aged care homes allow for direct debiting of the RAD. This means they pull the funds straight from your account, but this is increasingly uncommon.

Paperwork You Will Need (Very Important)

Centrelink, the aged care facility, and anyone reviewing your finances (including your adviser) will need proof of where the money came from and where it went.

You will typically need:

Bank Statement – showing the funds leaving your account.
Settlement Statement (if a property was sold) – showing the breakdown of proceeds, including the RAD payment.
RAD Receipt – issued by the aged care facility once the RAD is received.

This is what allows us (or Centrelink) to connect the dots — from house proceeds or savings, through the bank, to the aged care provider.