Not everyone has to pay a RAD. Residents cannot be charged this component if they are left with less than 2.5 times the annual pension. This charge varies from facility to facility and is capped at $550k. If this RAD is more than the capped figure the facility needs to apply to the Aged Care Pricing Commissioner and justify why they require to charge above the capped amount. The RAD is also measured against your assets and savings. As long as you are left with the amount nominated at the time of entry into Aged Care the RAD can be adjusted according to your savings.