Damon Mcknight
Aged care in Australia is a system that provides support to older people who need help to live independently at home or who can no longer live at home. Aged care services are designed to meet the needs of older adults and are typically provided by private enterprises. The Australian government subsidises aged care homes and provides access to nursing and general health care services. The cost of aged care varies depending on the funding programme and the individual's financial situation. The Aged Care Act 1997 is the main law that covers government-funded aged care, setting out rules for funding, regulation, approval of providers, quality of care, and the rights of people receiving care.
| Characteristics | Values |
|---|---|
| Age criteria | 65 years or older (50 years or older for Aboriginal or Torres Strait Islander people or those at risk of homelessness) |
| Eligibility criteria | Health, ability to manage at home, current support received |
| Types of care | Help at home, short-term care, aged care homes, respite care, retirement villages |
| Funding | Government-funded, self-funded, or a combination of both |
| Cost | Varies based on funding source, care type, provider, and individual financial situation |
| Choice of provider | Available since 2017, allowing recipients to choose their preferred provider |
| Laws and regulations | Aged Care Act 1997, Charter of Aged Care Rights, laws on diversity and discrimination |
| Quality assurance | Aged Care Quality and Safety Commission, Star Ratings, non-compliance checker |
| Reforms | Increasing Choice in Home Care (2017), consumer-directed aged care, new Aged Care Act (2024) |
| Future projections | Expected to account for 6% of national GDP by 2060 |
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What You'll Learn
Aged care services
The cost of aged care services varies depending on the individual's financial situation and the type of care they require. While the Australian Government contributes to the cost of care, individuals are expected to contribute to the cost if they can afford to. The Government subsidy does not always cover the full cost of the service, so each person may pay a small contribution. Basic daily fees are standard for all residents, while other costs are based on a resident's means.
Older Australians or their carers can contact the My Aged Care service to find out if they can access government funding to help cover the cost of aged care services. My Aged Care can arrange for an assessment by the Aged Care Assessment Team (ACAT) or ACAS (in Victoria) to determine eligibility. The funding received varies depending on the level of the Home Care Package and is paid directly to the service provider.
There are different types of aged care services available, including help at home, short-term care, and aged care homes. Aged care homes, also known as residential aged care, are utilised by a small proportion of older Australians, with most opting for community packages such as home support or home care. Home care services can include personal care, home nursing, respite services, mobility and dexterity assistance, and the provision of equipment and aids.
The Aged Care Act 1997 is the primary legislation governing government-funded aged care in Australia. It outlines rules for funding, regulation, approval of providers, quality of care, and the rights of care recipients. Since 2012, the government has been introducing reforms to create a more consumer-directed aged care system, allowing individuals to choose their service providers. The new Aged Care Act 2024, which was recommended by the Royal Commission into Aged Care Quality and Safety, will further strengthen the rights of older people accessing aged care services.
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Eligibility and costs
To be eligible for Australian government-funded aged care services, older Australians must be:
- 65 years or older (50 years or older for Aboriginal or Torres Strait Islander people)
- An Australian citizen or have lived in Australia for at least 10 years
- Unable to perform at least one everyday task without assistance due to physical, cognitive, or other limitations.
Alternatively, older Australians can also access aged care services if they:
Have complex or high care needs that require extra help
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Types of care
Aged care in Australia offers a range of services to support older people with their specific needs, ensuring they can maintain their independence and quality of life as they age.
In-Home Care:
In-home care allows older Australians to remain in their own homes while receiving assistance with daily tasks. This can include
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Laws and rights
Aged care in Australia is primarily governed by the Aged Care Act 1997, which outlines rules for government-funded aged care services, including funding, regulation, approval of providers, quality of care, and the rights of those receiving care. The Act also addresses diversity and discrimination, aiming to ensure inclusive and respectful care services.
The Aged Care Diversity Framework further reinforces these values, emphasising the right of all individuals to quality care, regardless of their social, cultural, language, religious, spiritual, psychological, medical, or care needs. This framework promotes respectful and inclusive aged care services.
To further strengthen the system, a new rights-based Aged Care Act was passed in November 2024 and will come into effect in November 2025. This Act aims to address issues facing older people, care providers, workers, and the broader sector. It puts the rights of older people at the centre, enhancing their protections, and providing greater choice and transparency. The new Act will replace several existing pieces of legislation, including the Aged Care Quality and Safety Commission Act 2018, and will build upon priority aged care reforms that have already been implemented.
The Charter of Aged Care Rights, a requirement of the Aged Care Act 1997, sets out the rights of individuals receiving government-subsidised aged care services. It outlines expectations for the quality of care and the services provided by aged care providers. The Charter grants individuals control over their care, personal and social life, and daily life decisions, including financial affairs and possessions. It also ensures that individuals' identities and information are protected when reporting non-compliance with aged care laws.
In addition to the above, various other pieces of legislation impact aged care in Australia, including the Advance Care Directives Act 2013 (SA), the Aged Care Legislation Amendment (Quality Indicator Program) Principles 2019, the Guardianship and Administration Act 1990 (WA), and anti-discrimination laws such as the Sex Discrimination Act 1984 and the Age Discrimination Act 2004.
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Funding and subsidies
The Australian Government is the primary funder and regulator of the aged care system in the country. It subsidises a range of aged care homes, making care and support services affordable and accessible to those in need. The subsidies are paid directly to the aged care home. The amount of funding a home receives is based on an assessment of the care needs of each resident and how much they can afford to contribute to the costs. Each home sets its own prices within a prescribed limit. Typically, there are three types of costs associated with aged care homes: a basic daily fee (currently a maximum of $63.82 per day), a maximum amount for hotel services, and a means-tested care fee. Some residents will have their accommodation costs met in part or in full by the government, while others will be required to pay an accommodation price agreed upon with the aged care home.
The Australian Government pays subsidies to approved providers on behalf of each person receiving government-subsidised aged care. These subsidies are available for approved providers of home care, residential aged care, and flexible care. Supplements are also paid by the government to help with the cost of meeting specific care needs for eligible care recipients. These supplement amounts are included in subsidy payments and some program funding grants.
For some programs, you need an allocation of government-subsidised aged care places before you can get subsidies. For instance, residential aged care places are available for providers that can provide care. Additionally, approved providers can apply for capital grants to build and maintain aged care homes.
My Aged Care, established by the Australian Government, helps individuals find and access the right government-funded aged care services. The new Support at Home program, starting from 1 November 2025, will replace the Home Care Packages Program and may change the cost of some services.
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Frequently asked questions
Aged care in Australia refers to the support provided to older people who need help in their own home or who can no longer live at home. It includes both residential aged care and home care services, such as personal care, home nursing, respite services, mobility and dexterity assistance, and the provision of equipment and aids.
To be eligible for aged care services in Australia, you must be 65 years of age or older (50 years or older if you identify as an Aboriginal or Torres Strait Islander person, or if you are 50 to 64 years old and are homeless or at risk of homelessness). Eligibility is also based on factors such as health, how you are managing at home, and any support you currently receive. An assessment by an aged care team will determine your eligibility and the level of care you require.
The cost of aged care services in Australia varies depending on the individual's financial situation, the care they are eligible for, and the provider they choose. The Australian government subsidises aged care services and pays for a large portion of the cost. However, individuals may be asked to contribute to the cost of their care if they can afford to. The cost of residential aged care includes a basic daily fee, means-tested care fees, and accommodation contributions.
