Between 1 July 2026 and 30 June 2028, a new payment system will be implemented for residential aged care providers, shifting to a model that pays based on actual service delivery. This change will boost sector efficiency by eliminating the need for providers to perform administrative reconciliation of advance payments.
The basic daily care fee for residential aged care in Australia is $60.86. This amount equals 85% of the standard full aged pension. It’s a key figure in understanding aged care funding.
Residential aged care providers support older Australians who can’t live independently. They offer various care options. These range from daily task help to round-the-clock nursing care.
The Commonwealth Government regulates and funds residential aged care services. This happens under the Aged Care Act 1997. Providers include not-for-profit, private, and public sector organisations.
Victoria’s state government adds extra funding for public sector aged care. This support aims to ensure high-quality care. It creates a strong system to meet our ageing population’s needs.
Major Highlights
- The basic daily care fee for residential aged care is $60.86
- Aged care providers include not-for-profit, private, and public sector organisations
- The Commonwealth Government regulates and funds residential aged care services
- Victoria provides extra support for public sector residential aged care services
- Residential care ranges from daily task assistance to 24-hour nursing care
Home Care Package Funding and Services
Home Care Packages help older Australians stay independent at home. The government funds over 285,000 packages for seniors. These packages offer support from basic to high-level care.
Medical and Personal Care Support Options
Home care services offer essential medical and personal care. Registered nurses can visit to manage chronic conditions and medications. Personal care aids help with daily tasks like showering and grooming.
Household Assistance and Maintenance Services
A clean, safe home is crucial for seniors. Home Care Packages provide regular cleaning and laundry services. They also offer garden maintenance to keep homes comfortable.
Mobility and Equipment Support
Many seniors need mobility aids. Home Care Packages can provide walking frames and wheelchairs. This support helps seniors move safely at home and in their community.
Social and Community Engagement Services
Staying connected is vital for wellbeing. Home care services help seniors engage with their community. They assist with shopping, local events, and group activities.
Package Level | Annual Funding | Care Needs |
---|---|---|
Level 1 | $10,687.20 | Basic |
Level 2 | $18,793.85 | Low |
Level 3 | $40,905.55 | Intermediate |
Level 4 | $62,013.50 | High |
Home Care Packages are tailored to individual needs. Funding levels range from basic to high care. This approach allows seniors to access the right support for their situation.
Home Care Packages offer a great alternative to nursing homes. They support seniors to live comfortably in their own homes for longer.
Residential Aged Care Providers: Service Delivery and Payment Structure
Australian residential aged care providers offer various services for older citizens. These include dementia, respite, and palliative care. The Commonwealth Government regulates payments under the Aged Care Act 1997.
Not-for-profit organisations are key players in aged care. They run 58% of residential care and 67% of home care services. As of June 2023, nearly 3,200 providers offered care through 9,300 services nationwide.

The residential care sector has changed recently. Privately-run services saw a 34% increase in aged care places since 2013. However, the average occupancy rate was 86% in June 2023.
Funding supports high-quality care across various provider types. This includes not-for-profit, private, and public sector organisations. The Victorian Government also funds and supports public sector residential aged care services (PSRACS).
Service Type | Number of Providers | Number of Services |
---|---|---|
Home Support | 1,334 | 3,744 |
Home Care | 923 | 2,448 |
Residential Care | 764 | 2,639 |
Victoria leads in privately and government-run residential care services. They account for 42% and 20% respectively. This variety ensures diverse options for those seeking aged care.
Government Support and Funding Eligibility for Aged Care Services
The Australian Government provides extensive support for seniors through aged care programs. These include Home Care Packages and the Commonwealth Home Support Programme. Over 285,000 government-funded Home Care Packages are available for different care needs.
Eligibility usually requires individuals to be 65 or older. For Aboriginal and Torres Strait Islander people, the age is 50. Exceptions exist for those over 50 with low income or facing homelessness.
My Aged Care assesses eligibility based on medical conditions and mobility issues. The Aged Care Assessment Team (ACAT) or Regional Assessment Service (RAS) conducts this 1-3 hour assessment.
Funding involves means testing, considering income and assets. The government subsidises costs, with individuals contributing based on their finances. Home Care Packages have four levels, each with a different daily fee.
For assisted living or elderly care facilities, the assessment determines the most suitable options. These can be in-home support or residential care in senior living communities.
To access services, contact My Aged Care on 1800 200 422 for an initial assessment. This helps determine the most appropriate program. Approved individuals can receive support from health professionals to maintain their quality of life.
A fact sheet detailing the differences between these programs is available for download.