Aged Care in Australia: Home Care, Residential Care, and Costs
Australia has a government-funded aged care system designed to help older people live independently for as long as possible, and then transition into residential care when needed. The system is complex and often overwhelming for families navigating it for the first time. This article explains the key pathways.
My Aged Care — the entry point
My Aged Care (myagedcare.gov.au) is the Australian Government’s central portal for aged care. It is the starting point for all government-funded aged care services. You can use it to:
- Learn about what services are available
- Apply for an assessment
- Find and compare approved service providers
- Manage an existing aged care plan
An older person (or their family, with consent) registers on My Aged Care and requests an assessment. This triggers a visit from either a Regional Assessment Service (RAS) team for lower-level needs, or an Aged Care Assessment Team (ACAT) for more complex needs.
Home Care Packages
Home Care Packages fund support services delivered in an older person’s own home. There are four levels, from Level 1 (basic support needs) to Level 4 (high care needs). Services can include personal care, nursing, domestic assistance, meal delivery, transport, and home modifications.
Packages are allocated by the government based on assessed need. There is currently a waiting list for higher-level packages. Once allocated, the recipient chooses an approved provider to manage the funds and coordinate services.
A basic daily fee and an income-tested care fee may apply. The income-tested fee is assessed by Services Australia based on income.
Residential Aged Care
When a person can no longer be safely cared for at home, residential aged care (nursing home care) is the next step. An ACAT assessment and approval is required before a person can enter a government-subsidised residential facility.
Costs have two main components:
- Basic daily fee — a fixed fee set by the government, currently around 85% of the single aged pension rate.
- Accommodation payment — either a Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a combination. RADs are fully refundable when the resident leaves or passes away.
Means-tested care fees may also apply for those with higher assets or income. The total cost depends on the facility, the room, and the individual’s financial situation.
Commonwealth Home Support Programme
For people with entry-level care needs, the Commonwealth Home Support Programme (CHSP) offers subsidised services — including meals, transport, domestic help, and social activities — at a much smaller scale than a Home Care Package. This is often the first form of government support an older person receives.
Planning ahead
Aged care works best when families plan ahead rather than responding to a crisis. Starting the My Aged Care registration process before a situation becomes urgent means assessments and allocations are in place when they are needed. An aged care financial adviser can help families understand costs, accommodation deposits, and how assets are assessed — this is a specialist area distinct from general financial planning.