What is the MPIR?
The interest rate that determines your Daily Accommodation Payment.
What is the MPIR?
The MPIR (Maximum Permissible Interest Rate) is the interest rate used to calculate Daily Accommodation Payments (DAP) in aged care. It's set by the Australian Government and updated quarterly.
If your room price (RAD) is $500,000 and you choose to pay DAP instead, your daily payment is calculated as:
$500,000 × 7.65% ÷ 365 = $104.79 per day
How is the MPIR set?
The MPIR is based on the government bond rate (specifically, the 10-year Australian Government bond rate) plus a margin. It's reviewed and published quarterly by the Department of Health and Aged Care.
The rate has been gradually declining from its 2024 peak as bond rates have eased.
MPIR is locked at entry
An important detail: the MPIR that applies to your DAP is locked on the date of entry into care. If the MPIR drops after you enter, your DAP rate doesn't change. Conversely, if it rises, you're protected.
However, since November 2025, DAP is subject to CPI indexation — so while the MPIR rate stays fixed, the dollar amount increases with inflation. Learn about DAP indexation →
Historical MPIR rates
| Effective date | MPIR | Change |
|---|---|---|
| 1 January 2026 | 7.65% | ↓ 0.15% |
| 1 October 2025 | 7.80% | ↓ 0.10% |
| 1 July 2025 | 7.90% | ↓ 0.10% |
| 1 April 2025 | 8.00% | ↓ 0.34% |
| 1 January 2025 | 8.34% | ↓ 0.02% |
| 1 October 2024 | 8.36% | — |
Source: Australian Government Department of Health and Aged Care
What does the MPIR mean for your decision?
The MPIR determines how expensive DAP is relative to RAD. A higher MPIR makes DAP more costly, tilting the decision toward RAD. A lower MPIR makes DAP more affordable.
At the current MPIR of 7.65%, if your investments earn more than about 6-7% after accounting for RAD retention, DAP may be the better option. The exact breakeven depends on your room price and expected length of stay.
MPIR rates are sourced from the Australian Government Department of Health and Aged Care. Always verify current rates directly with the department. This information does not constitute financial advice.