How Aged Care works in Australia

Aged care supports older Australians who can no longer live independently by providing living and nursing services. These include in-home care and residential aged care (aged care homes) services.

Aged care is socialised through Government Subsidy in Australia under the Department of Health. The Government oversees legislation as well as regulating the cost and accreditation for nursing homes Australia-wide.

Residential aged care (nursing homes) is funded by the Government and ensure they are up to standard. Entering an aged care home requires an ACAT Assessment as the first step to decide how much care support you need. More information can be found at the MyAgedcare Australia website.

In-home care is funded through two services including the Commonwealth Home Support Program (CHSP) and the Home Care Package Program (HCP).

The CHSP provides basic assistance for people living at home who require various levels of assistance. The HCP program provides a greater range of services tailored to the individual.

Types of Aged care available in Australia

To keep things simple, aged care can be separated into two categories:

• short-term and;

• Long-term care.

Short term care:

Short-term care is any care that is non-permanent. The most popular type of care is in-home care, sometimes known as restorative care. This involves one or many carers performing tasks that an elderly person may struggle to do autonomously such as cleaning, personal care and hygiene, and preparing meals.

Other short-term care types include respite care to give carers a break, and transition care; helping people who have just had surgery.

Long-term care:

Long-term care is any care that is not temporary and usually involves the patient moving to an aged care home or facility. Long term care also often includes medical or nursing assistance for those at later years of life.

Residential care describes aged care homes where the resident pays live in and aged care home. Palliative care, also known as end-of-life care which supports those with terminal illness.

What are the costs and how does payment work?

The costs associated with aged care depend upon duration, how much care support is required, and the type of lifestyle you’re looking to peruse if in an aged care facility.

In home care:

In-home care costs varies depending on the type and level of care and services you will receive. According to My Aged Care Australia The maximum amount you could be asked to pay:

• $10.85 per day, if you receive care while living at home (17.5% of the single aged pension).

• $52.71 per day, if you receive care while living in a residential setting (85% of the single aged pension).

How much is payed above the typical daily care fee, is means tested. Additional service fees may apply if you intend on entering a home where those options are available.

Residential care:

Residential aged care, (nursing homes) also known as an aged care homes or retirement villages have specific individual costs depending on your requirements.

Each home sets their own prices, within a prescribed limit, and costs will vary. Payment depends on the place you choose and an assessment of your income and assets. According to My Aged Care Australia, typically, there are three types of costs associated with all aged care homes:

1. A basic daily fee (the maximum is currently $52.71 per day)
   A maximum amount that everyone pays for the hotel services they receive.

2. Accommodation costs
   A varying cost for your room based on a means assessment.

3. Means-tested care fee (the maximum is currently $259.26 per day)
   A varying cost for the care services you receive based on a means assessment.

To learn more about costs and fees are paid, read our full article here.