Damon Mcknight
Australia's aged care system offers a range of services to support people as they age, including home support, home care, residential care, transition care, and short-term restorative care. As of June 30, 2024, there were 198,000 people in permanent or respite residential care, with the majority of aged care services located in metropolitan areas, where most older people live. The Australian Government manages the supply of aged care places and funds a variety of providers, including government-owned, private not-for-profit, and for-profit facilities. The number of aged care places is determined based on the population aged 70 and over, with states and territories with larger older populations having more aged care places available.
| Characteristics | Values |
|---|---|
| Number of aged care homes in Australia | 2,900 residential aged-care facilities |
| Ownership type | 55% private not-for-profit, 30% private for-profit, 15% government-owned |
| Number of providers in the market | Decreased since 2021 due to consolidations |
| People using home care | 275,000 as of 30 June 2024 |
| People using permanent or respite residential care | 198,000 as of 30 June 2024 |
| People using transition care or short-term restorative care | 4,900 as of 30 June 2024 |
| People assisted under the Commonwealth Home Support Programme | 835,000 in 2023-24 |
| Percentage of older Australians born overseas | 35% |
| Percentage of older Australians who speak a language other than English at home | 16% |
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What You'll Learn
Types of aged care
Australia's aged care system offers a variety of services to cater to people as they age. The Australian government has identified three main types of aged care: residential, short-term, and home care.
Residential care is the most common type of aged care in Australia. This type of care is for people who can no longer live independently and need constant care and supervision. Residential aged care facilities are usually purpose-built, with residents having their own bedrooms and sharing communal areas such as kitchens, living rooms, and laundry facilities. Most residential aged care facilities provide 24-hour nursing care, personal care, meals, laundry, and recreational activities. The Australian government generally funds residential aged care, but residents may also be required to pay daily and periodic care fees.
Short-term aged care describes a care arrangement for a shorter period, usually after a hospital stay or for families who need a break from caring for a relative. Respite care is a form of short-term care where a professional carer looks after a person in their own home, allowing family members to take a break. Intermediate care is another short-term option that provides support and rehabilitation following an illness or hospital treatment.
Home care, also known as community care, allows older people to remain in their homes while receiving health care support and assistance with daily tasks. This can include personal care, housekeeping, meal preparation, transportation, and nursing. Home care services are flexible and can be tailored to meet individual needs, provided on a casual, regular, or respite basis. It is often a more affordable and independent option than residential care, and it can be customised to meet specific needs.
In addition to these three main types of aged care, there are also flexible care options, which allow older Australians to receive the support they need while continuing to live independently in their own homes. Retirement villages are one such option, providing a balance between independent living and access to care services.
The choice between these aged care options depends on individual needs and circumstances. It is important to research and consult professionals to find the best option for future care arrangements.
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Number of aged care places
The number of aged care places in Australia is decided by the Australian Government. The government manages the supply of aged care places by setting a national target provision ratio of subsidised aged care places based on the population aged 70 and over. This approach aims to increase the supply of aged care places in proportion to the growth of the older population.
The number of aged care places has changed over time and varies across states and territories. The availability of aged care services also differs by remoteness areas, with most services located in metropolitan areas, where most older people live. As of 30 June 2024, 66% of older Australians (aged 65 and over) lived in metropolitan areas, 9.5% in regional centres, 23% in rural towns, and only 1.5% in remote or very remote communities.
The Australian Government's focus on increasing the supply of aged care places is reflected in the growth of the residential aged care market. The number of providers in the aged care market has decreased since 2021 due to consolidations, but the overall number of operational places and residences per provider continues to grow.
The distribution and types of aged care services across Australia are planned by the government using Aged Care Planning Regions (ACPRs). These regions help ensure that aged care services are available where they are needed, catering to the diverse needs of older Australians, including those from culturally and linguistically diverse (CALD) backgrounds.
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Aged care providers
Australia's aged care system offers a wide range of services to cater to people as they age. These services include home support, home care, residential care, transition care, and short-term restorative care. The Australian Government manages the supply of aged care places and services by taking into account the demand, funding, and market forces. The government also specifies a national target provision ratio of subsidised aged care places based on the population aged 70 and over, ensuring that the supply of care places grows in proportion to the growth in the older population.
The number of aged care providers has changed over time and is influenced by various factors such as demand, funding, and market forces. According to a study, the number of providers in the aged care market has decreased since 2021, with a split across different ownership types: private not-for-profit, private for-profit, and government-owned. The study, which examined the quality and prices of nursing homes, found that government-owned facilities provided higher-quality care at lower prices compared to private for-profit and not-for-profit facilities.
The Australian aged care sector has witnessed significant growth in the number of people accessing Home Care Packages, with a 19% increase over a 12-month period. This growth is attributed to the increase in the quantity of packages released by the Australian Government. However, the trend of provider growth has stabilised in the past four years, and competition remains high. The distribution and types of aged care services are planned by the government across 73 Aged Care Planning Regions (ACPRs), ensuring that states and territories with more older people have access to a greater number of care places.
The aged care sector in Australia is also characterised by its diversity, catering to the needs of culturally and linguistically diverse (CALD) Australians. These individuals may face barriers in accessing aged care due to their diverse backgrounds, including those who were born overseas or speak languages other than English. Overall, the aged care system in Australia is designed to meet the varying needs of its ageing population through a range of services and providers, with a focus on ensuring accessibility and quality of care.
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Quality of care
Australia's aged care system offers a range of services to cater to people as they age. The country's aged care sector is analysed annually by KPMG, which highlights trends and insights for the market. The number of aged care providers in Australia has decreased since 2021, with 44% of total government funding going to the top 25 residential aged care providers.
The quality of aged care is one of the most important factors when choosing a provider. The Aged Care Quality and Safety Commission (the Commission) ensures that aged care providers deliver safe, effective, and high-quality care to older people. The Commission makes formal regulatory decisions based on how well a home meets the standards, and providers need to make improvements based on these decisions. The Commission also provides support for people receiving aged care, their families, and carers, as well as guidance and support for workers in delivering safe, quality aged care.
The Commission has developed resources to help providers deliver good, culturally safe aged care for First Nations older people. The Quality Bulletin shares information with aged care providers about their responsibilities, changes in the sector, and the Commission's work as the national regulator. The Commission also encourages people to raise concerns or make complaints about aged care, as this can improve the quality of care for everyone.
There are several factors that contribute to delivering high-quality aged care. These include meeting regulatory and healthcare requirements, providing enough staff, listening to and understanding the needs and preferences of individuals, and responding to feedback from those receiving care. The Star Ratings system reflects these factors, with the Residents' Experience rating based on surveys from residents, the Staffing rating based on the amount of care provided by nursing and personal care staff, and the Quality Measures rating, which looks at incidents at the home and compares them to the national average. These ratings help people choose a provider that meets their individual needs and preferences and ensures they receive the best possible quality of life.
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Funding
The Australian Government provides funding for aged care services, which may be operated by the government, not-for-profit, or private organisations. The government subsidises a range of aged care homes, making care and support services affordable and accessible. These subsidies are paid directly to the care home, with the amount based on an individual's care needs and their ability to contribute to the costs. There is a basic daily fee of a maximum of $63.82 per day for hotel services.
The government also provides funding for in-home care services, allowing people to remain independent in their own homes for as long as possible. This funding is available through Home Care Packages, which offer four levels of care packages to suit individual needs. The funding is paid directly to the service provider, and the individual is expected to contribute to the costs if their personal circumstances allow.
The Australian Government manages the supply of aged care places by setting a national target provision ratio of subsidised places based on the population aged 70 and over. This approach aims to ensure that the supply of places grows in proportion to the ageing population. Residential and flexible care services are allocated a set number of government-funded places, with 223,691 operational places allocated to residential care services as of 30 June 2024.
The government also provides capital grants and funding through aged care programs. Approved providers can apply for capital grants to build and maintain aged care homes.
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Frequently asked questions
As of 2018/19, there were 2,900 residential aged-care facilities in Australia.
There are government-owned, private not-for-profit, and for-profit aged care homes in Australia.
The Australian government manages the supply of aged care places by specifying a national target provision ratio of subsidised aged care places based on the population aged 70 and over.
As of 30 June 2024, 275,000 people were using home care, 198,000 people were using permanent or respite residential care, and 4,900 people were using transition care or short-term restorative care.
Aged care services in Australia include home support, home care, residential care, transition care, and short-term restorative care.
