This year is a leap year, with 366 days instead of 365. The department has received queries from approved providers of residential care seeking advice on how to calculate a daily accommodation payment (DAP) in a leap year.
The calculators specified in the Fees and Payments Principles 2014 (No. 2) (the Principles) refer to 365 days for working out:
- the DAP (or contribution) equivalent to a refundable accommodation deposit (RAD) (or contribution)
- the amount of interest on a RAD (or contribution) balance or accommodation bond balance
Even though 2020 is a leap year, residential care providers should continue to use 365 days when calculating DAP amounts and the interest payable on refunds of lump sum deposits. But please be aware that daily payments and daily contributions are payable for 366 days in 2020.
Example calculation for a leap year
This shows the calculation of a DAP for a room price of $400,000 using the maximum permissible interest rate (MPIR) currently advised by the department (4.91% until 31 March 2020). The DAP is payable for every day the resident is in care. Note that this calculation is the same for a non-leap year.
DAP = (room price x MPIR)/365
= ($400,000 x 4.91%)/365