Australia’s aged‑care landscape is designed to help older people maintain independence, safety and quality of life. Aged care providers deliver a range of services, from simple home assistance to 24‑hour residential care, and they are regulated by the Australian Government. According to the Australian Institute of Health and Welfare (AIHW), the Government funds providers who operate multiple services; a single service could be a home support outlet, home‑care service or residential facility. As of 2024, there were 1,265 providers delivering entry‑level home support through 3,652 outlets and 736 providers delivering residential care through 2,617 services.
Most Australians prefer to remain in their own homes as they age. Only about 5 % of people aged 65 or more live in institutional care, and governments encourage “ageing in place” because it is cost‑effective and supports independence. When home is no longer safe or practical, aged care providers offer short‑term respite, flexible care programs and residential homes to bridge the gap.
Types of Aged‑care Services
Entry‑level Home Support and Home Care
Many older people simply need help with daily activities to remain independent. The Commonwealth Home Support Programme (CHSP) and Home Care Packages Program provide subsidised assistance such as personal care, meal preparation, housework, transport and social support. Home‑based services are arranged through the My Aged Care portal and require an assessment. Costs vary depending on the type and amount of services and on a person’s financial situation, but providers must offer government‑funded options.
Providers can tailor care packages to suit individual needs. For example, short‑term restorative care helps people regain independence after a hospital stay, while respite care gives family carers a break. According to the AIHW, most services are delivered in metropolitan areas, although flexible care programs such as transition care and culturally specific services operate in regional areas.
Residential Aged Care
When an older person can no longer live safely at home, they may move into a residential aged‑care home. These facilities provide 24‑hour personal care, nursing, accommodation and meals. The My Aged Care website notes that residential care homes support residents’ health and wellbeing and offer help with everyday tasks.
Admission to residential care is based on an assessment of care needs, and the costs are divided into accommodation fees, daily living fees and care fees. Star ratings introduced by the Aged Care Quality and Safety Commission help families compare homes based on residents’ experience, compliance, staffing and clinical indicators.
Flexible Care and Continuum‑of‑care Communities
Flexible care programs address specific needs not met by mainstream services. They include transition care, multi‑purpose services, short‑term restorative care and programs for Aboriginal and Torres Strait Islander communities. These services often operate outside metropolitan areas and allow older adults to receive temporary support while recovering from illness or during emergencies.
A recent innovation is the continuum‑of‑care model, which integrates retirement living, serviced apartments, home care and aged‑care facilities on a single site. A discussion document by Ryman Healthcare describes how residents and their partners can remain in the same village while their care needs change because the community offers independent living, serviced apartments and aged‑care services. This model allows people to move between levels of care without relocating and can improve financial sustainability by sharing staff, facilities and support services.
Choosing an Aged Care Provider
Assess Your Needs and Preferences
When selecting a provider, My Aged Care suggests evaluating three areas: services offered, quality and costs. Consider whether the provider can deliver the type of assistance required (e.g., domestic support, nursing care or specialist dementia care) and whether it can accommodate cultural, language or dietary preferences. Location matters too – providers situated near family, friends and familiar communities can help maintain social connections and reduce travel times.
Evaluate Quality and Regulation
All providers listed on My Aged Care are regulated by the Aged Care Quality and Safety Commission and must meet the Aged Care Quality Standards. High‑quality care involves sufficient staffing, responsiveness to residents’ preferences and a focus on dignity and autonomy. Star ratings for residential homes summarise performance across residents’ experience, compliance, staffing levels and clinical quality measures, enabling families to compare providers.
Understand Costs and Funding
Aged‑care costs depend on the type of service, provider and personal finances. While government subsidies are available, individuals may be required to pay means‑tested contributions. Entry‑level home support under the CHSP involves modest hourly fees, while Home Care Packages and residential care require income and assets assessments to determine contributions. Ask providers for itemised fee schedules to understand accommodation payments, daily care fees and any additional services.
Check Provider Reputation
Beyond official ratings, it helps to read independent reviews, visit facilities and speak with current residents or their families. Non‑profit organisations operate most services – 73 % of home support outlets and 57 % of residential care services. Private and government providers also operate facilities, so you may want to compare their approaches and philosophies.
The Future of Aged Care: Reforms and New Programs
Australia’s aged‑care sector is undergoing reform following the Royal Commission into Aged Care Quality and Safety. The government plans to replace the Home Care Packages and Short‑Term Restorative Care with a unified Support at Home program in November 2025. This program aims to streamline access to home support, with contributions based on the type of service and means assessments.
While reforms aim to improve funding and regulation, persistent challenges remain, including workforce shortages, funding gaps and the need for better integration across home and residential services. Aged care providers must balance economic sustainability with quality care to meet the needs of an ageing population.
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