For many years couples entering aged care were often advised to move in on separate days, this simple but effective strategy often meant that the first person qualified as a Low Means resident while the second paid the market price. But as the Maximum Permissible Interest Rate drops the Refundable Accommodation Contribution (RAC) becomes more expensive, in some cases more than the market price. When it comes to aged care everyone has the choice of paying towards the cost of their accommodation by a lump sum, daily payment or a combination of the two (you can even deduct your daily payment from your lump sum if you choose). For people who pay the market price, the lump sum amount is set by the facility and requires approval if it is above $550,000. The daily payment is calculated using a government set interest rate, known as the maximum permissible interest rate (MPIR) and is charged on any amount of unpaid lump sum. For example if the market price was $500,000 and some paid $200,000 by RAD then the DAP would be $40.36/day Low means residents can pay a Daily Accommodation Contribution (DAC) which is calculated by a means assessment which takes