How do I calculate the equivalent daily payment?
To calculate the equivalent daily payment of a refundable deposit, the refundable deposit is multiplied by the maximum permissible interest rate (MPIR), currently 6.59% as at 28 January 2014, and divided by 365 days.
For example, a refundable deposit of $400,000 would have an equivalent daily payment of $72.21 per day.
(Refundable deposit x MPIR)/365 = ($400,000 x 6.59%)/365 = $72.21 per day
An example of a combination payment for a $400,000 price may be a combination of a refundable deposit of $300,000 and a daily payment of $18.05 per day, with the daily payment determined as follows.
(Balance of price x MPIR)/365 = [($400,000 - $300,000) x 6.59%]/365 = $18.05 per day
How will we know the maximum permissible interest rate (MPIR)?
The MPIR will be available on the Department of Social Services website and will be updated every three months. We will ensure that any changes in the MPIR is reflected in our published prices.
The MPIR at the date of publishing this fact sheet is 6.59% (January to March 2014) and will be adjusted each quarter as the Government publishes the new MPIR.