1. Melbourne Aged Care Pricing & Market Overview

Choosing a nursing home in Melbourne involves balancing location, care needs, and accommodation costs. Under the Aged Care Act, every accredited facility in Victoria must publish its maximum room prices publicly on My Aged Care.

Most residents enter aged care via one of three payment choices:

  • Full RAD (Refundable Accommodation Deposit): A lump sum deposit that is 100% government-guaranteed and refunded upon departure.
  • Full DAP (Daily Accommodation Payment): A daily rental fee calculated from the unpaid RAD using the government interest rate (currently 8.38% MPIR).
  • Combination Payment: Part lump sum and part daily interest payment.

2. Melbourne Regional Price Comparisons

Accommodation prices vary widely across Melbourne's distinct metropolitan corridors:

Region Key Suburbs Typical RAD Range Daily DAP Equivalent
Inner East & Bayside Kew, Hawthorn, Camberwell, Brighton $850,000 – $1,400,000 $195.16 – $321.44 / day
Inner North & South Carlton, Brunswick, Prahran, Caulfield $650,000 – $900,000 $149.23 – $206.63 / day
Eastern Suburbs Box Hill, Ringwood, Glen Waverley $550,000 – $750,000 $126.27 – $172.19 / day
Western & Northern Suburbs Werribee, Sunshine, Broadmeadows, Craigieburn $420,000 – $540,000 $96.42 – $123.97 / day
Negotiating Room Prices
Published RAD figures are maximum prices, not fixed prices. Families have the legal right to negotiate room deposits, especially when homes have multiple vacancies.

3. Public Sector vs Private Nursing Homes

Victoria is unique in Australia because the state government directly operates over 170 public aged care facilities (PSRACS) through major health services like Monash Health, Eastern Health, and Austin Health.

These facilities often feature generous staff-to-resident ratios and specialize in complex geriatric care, dementia with severe behaviors, and younger people with neurological disabilities.

4. Rapid Placement from Melbourne Hospitals

A common pathway into residential aged care in Melbourne occurs following an acute medical event, such as a fall, stroke, or hip fracture. Major tertiary hospitals with dedicated aged care discharge teams include:

  • The Royal Melbourne Hospital (Parkville)
  • The Alfred Hospital (Commercial Road, Prahran)
  • Austin Hospital (Heidelberg)
  • Monash Medical Centre (Clayton)
  • St Vincent's Hospital (Fitzroy)

Hospital social workers work directly with the Single Assessment System (ACAT) to expedite approvals and coordinate emergency respite or permanent beds before hospital discharge.

5. Melbourne RAD vs DAP Calculator

Use this interactive tool to compare payments for Melbourne aged care rooms based on current statutory rules:

2026 Statutory Formula • Current MPIR Rate: 8.38% p.a.

RAD vs DAP Accommodation Calculator for Melbourne VIC

Compare your daily accommodation payments (DAP), upfront refundable deposits (RAD), and estimated 5-year estate impact.

$580,000
Quick Presets:
50% RAD / 50% DAP
100% DAP (No upfront) 50/50 Split 100% RAD (Full lump)
Current Government MPIR Benchmark: 8.38% p.a. (Statutory determination)
Option 1: 100% Lump Sum (RAD)
$550,000

Daily DAP Cost: $0.00 / day

Refundable to Estate: 100% ($550,000)

Government Guarantee: 100% Backed

Custom Selection
Combination (RAD + DAP)
$63.12 /day

Upfront RAD Paid: $275,000

Monthly DAP Rental: $1,920

Annual DAP Total: $23,045

Option 3: 100% Daily (DAP)
$126.27 /day

Upfront Lump Sum: $0 (Nil)

Monthly Rental Cost: $3,840

Refundable to Estate: $0 (Non-refundable)

5-Year Cumulative Outlay Projection

Avg Stay: 2.8 to 5 Years

Based on the average Australian aged care length of stay (2.8 to 5 years), here is the cumulative cost projection:

1 Year DAP Cost
$23,045
3 Year DAP Total
$69,135
5 Year DAP Total
$115,225
Estate Refund (at exit)
$275,000

Save or print this comparison sheet for family consultations and financial advisory meetings.