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Australia's ageing population has led to an increased demand for aged care services. The Australian aged care system provides a range of services that support older people – and a small number of younger people with disabilities – in both community and residential settings. Aged care services in Australia are typically provided by private enterprises, with government subsidies available for those who need financial assistance. Services include 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. The Australian government has been introducing reforms to address the challenges posed by the ageing population and to improve the quality of aged care services.
| Characteristics | Values |
|---|---|
| Purpose | To provide support for older people with everyday living and other needs |
| Types of care | Home care, short-term care, residential aged care |
| Services | Personal care, home nursing, respite services, mobility and dexterity assistance, provision of equipment and aids |
| Eligibility | Health, ability to manage at home, current support received |
| Cost | Depends on care eligibility, provider, and financial situation; government subsidies available |
| Providers | Private enterprises, government-funded providers, not-for-profit providers |
| Regulatory bodies | Aged Care Financing Authority, Aged Care Sector Committee, National Aged Care Alliance |
| Reforms | "Living Longer Living Better" (LLLB) reforms, Aged Care Act 2024, new Aged Care regulator |
| Challenges | Inadequate services, poor quality, financial strain, workforce shortages, insufficient funding |
| Future projections | Increased demand, expected to put pressure on the government equivalent to 6% of national GDP by 2060 |
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What You'll Learn
Types of care services
Aged care services in Australia are designed to meet the needs of older adults and are usually provided by private enterprises. The services include both residential aged care and home care services. The Australian government subsidises many aged care services through the Department of Health, Disability and Ageing. However, those who can afford to contribute to the cost of services are expected to do so.
There are different types of care services available to help older Australians maintain a good quality of life. These include help at home, short-term care, and aged care homes.
Home Support
Home support provides entry-level support services to help people stay independent and in their homes and communities for longer. This can include personal care, transport, and assistance with food preparation and meals. The CHSP (Commonwealth Home Support Programme) is one such programme that provides support for older people to continue living independently in their homes and communities.
Home Care
Home care offers packages of services at four levels, with care needs increasing with each level. This can include clinical services and personal care, such as cleaning, and assistance with mobility and dexterity. Most older Australians prefer home-based care due to concerns about quality and safety in aged care facilities.
Residential Care
Residential care provides a range of care options and accommodation for those who can no longer live independently in their own homes. This can be on a permanent or respite basis. Only a small proportion of older Australians access residential aged care in a given year, with most using community packages such as home support or home care.
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Funding and costs
The Australian Government is the primary funder and regulator of the aged care system, ensuring that every older Australian in need of support receives it. The funding system is designed to accommodate various levels of care, including enabling individuals to continue living independently in their homes or providing the necessary support when residential aged care becomes the best option to optimise safety and wellbeing. The government provides funding for a wide range of aged care services, including home support, home care, and residential care.
The government pays subsidies to approved providers on behalf of each person receiving government-subsidised aged care. People who receive government-subsidised aged care contribute to the cost of their care if they can afford to. The level of contribution is subject to an assessment of affordability. Supplements help with the cost of meeting specific care needs for eligible care recipients.
In 2023–24, the Australian Government and state and territory governments spent AUD 36.4 billion on aged care services, with the largest proportion (59%) spent on residential care services. The remaining funds were spent on home care and support services (32%), flexible care services (3.0%), and other aged care services, including workforce and service improvement, and assessment and information services (6.3%). Between 2017–18 and 2023–24, government expenditure on residential and flexible care services increased by 44% from AUD 15.7 billion to AUD 22.6 billion, while expenditure on home care and support services increased by 89% from AUD 6.1 billion to AUD 11.5 billion.
Home Care Packages (HCPs) are available at four levels, designed to match the varying needs of seniors who want to remain at home. The government pays an HCP subsidy on behalf of each eligible senior to cover most of the cost of HCPs. An income-tested care fee is an additional fee that some people may pay if their income is over the maximum income for a full pensioner.
My Aged Care, established by the Australian Government, helps individuals find and access the right government-funded aged care services. Services Australia’s Aged Care Specialist Officers (ACSOs) offer a free service, providing financial information about aged care services and the financial impact of aged care costs, checking eligibility for government-funded services, and referring individuals for an aged care assessment.
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Staffing and recruitment
The Australian aged care sector is facing challenges in staffing and recruitment, as providers struggle to attract and retain qualified, skilled, and experienced staff. This issue is exacerbated by new requirements for mandated care minutes and the presence of registered nurses onsite 24/7 at residential aged care homes. The sector has also witnessed a decline in the number of providers since 2021, with smaller providers exiting the market due to increasing regulatory requirements and financial sustainability challenges.
The Australian government has been introducing reforms since 2012 to create a more market-driven environment, allowing consumers or their carers to choose their service provider. This has resulted in more private business providers entering the market, competing with government-funded and not-for-profit providers. However, there is a lack of official government regulation of private aged-care providers, leading to concerns about staffing levels, skills, and quality of care.
To address the staffing and recruitment challenges, the government has made significant investments in the aged care system. In 2021-22, the Commonwealth government allocated AUD 24.8 billion to promote healthy ageing and enhance the quality of life for older adults. Additionally, there has been an increase in the number of people accessing Home Care Packages due to the Australian government releasing more packages. This shift towards consumer-directed aged care and the increasing demand for high-quality care highlight the need for a robust and skilled workforce in the sector.
The Royal Commission into Aged Care Quality and Safety, appointed in 2018, made 148 recommendations, including legislated minimum nursing and care requirements, which are expected to further shape the sector. These recommendations aim to improve the quality and safety of aged care services, ensuring that the rights of those receiving care are supported. The new Aged Care Act 2024, which comes into effect on 1 July 2025, is a significant step towards enhancing the aged care sector and addressing the challenges it faces.
To summarize, the Australian aged care sector is facing staffing and recruitment challenges due to a combination of factors, including a growing ageing population, changing regulatory requirements, and financial sustainability issues. The government's reforms, investments, and recommendations from the Royal Commission are aimed at improving the sector and ensuring a skilled and robust workforce to meet the escalating demand for high-quality aged care services.
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Quality and safety concerns
The Australian aged care sector has faced scrutiny in recent years, with concerns raised about the quality and safety of care provided to elderly Australians. In 2018, the Royal Commission into Aged Care Quality and Safety was established to address these issues and ensure the sector was meeting the needs of the community.
The Commission investigated various issues, including neglect and systemic failures, which were impacting the wellbeing and dignity of those in aged care. The final report outlined 148 recommendations to be implemented over a decade, aiming to transform aged and community care. As a result, the Aged Care Quality and Safety Commission was formed to monitor the quality of care delivered by providers against strengthened Quality Standards, which come into effect in November 2025.
The Quality Standards outline what good care looks like and encompass eight key principles. These include treating individuals with dignity and respect, enabling informed choices, providing safe and appropriate personal and clinical care, and supporting independent living and enjoyment of life. The Aged Care Quality and Safety Commission provides resources and guidance to ensure providers understand and meet these standards.
To ensure accountability, the Commission audits aged care homes and assigns graded assessments. These assessments are displayed using a 4-bar rating system, with four bars indicating that all requirements are met, and fewer bars indicating areas for improvement. This information is made available to the public to assist in choosing a suitable aged care provider.
Additionally, the Aged Care Quality and Safety Commission encourages individuals to raise concerns or make complaints about aged care providers. This process is confidential and anonymous if desired. By speaking up, individuals can help improve the quality of care not only for themselves but also for others facing similar issues.
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Consumer-directed care
The Australian aged care sector provides support for older people to help them with everyday living and other needs. Services include 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.
The Australian government has been introducing reforms since 2012 that move towards consumer-directed care, giving consumers greater choice and control. This is in response to the increasing demand for aged care services, with the number of Australians needing help in aged care projected to increase significantly by 2056 and 2096.
To access consumer-directed care, individuals must first be assessed and approved. An assessment is conducted by the Aged Care Assessment Team (ACAT) or ACAS in Victoria, which determines an individual's eligibility for a Home Care Package or other assistance. During the assessment, a professional will ask questions about how the individual is managing their day-to-day life and explain the assessment process. The individual can have a friend, family member, or advocate present during the assessment. After the assessment, the individual will be informed of the outcome and the level of Home Care Package they are eligible for.
Once approved, the individual can choose a home care provider that suits their needs and circumstances. The provider will work in partnership with the individual to determine their requirements and goals. The individual can choose to be as involved as they want to be in managing their package and budget, and the cost of services is more transparent. CDC is currently only available for Home Care Packages and is not meant for those who need only short-term care.
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Frequently asked questions
The Australian aged care sector provides support for older people with everyday living and other needs. This includes both residential aged care and home care services.
Home care services can include personal care, home nursing, respite services, mobility and dexterity assistance, and the provision of equipment and aids.
Residential aged care services provide a range of care options and accommodation on a permanent or respite basis for people who are unable to continue living independently in their own homes.
Eligibility for Australian aged care services is based on factors such as your health, how you're managing at home, and any support you currently receive. To know for sure if you're eligible, you will need to have an assessment.
