Residential Care

Eligibility, fees, services, rights, provider choice, and planning.

Residential Care

Eligibility, fees, services, rights, provider choice, and planning.

Residential Aged Care in Australia

Welcome to the ultimate guide on Commonwealth‑regulated residential aged care in Australia. Whether you're researching for yourself or helping a loved one, this page brings together all the essential details about eligibility, fees, services, rights, provider choice, and planning for a smooth transition into residential aged care.

What Is Residential Aged Care?

Residential aged care — often called “nursing homes” or “care homes” — is government‑subsidised care provided in specialised facilities. These homes offer 24‑hour nursing, personal care, meals, social activities and support for seniors who can no longer live safely at home.

Commonwealth funds facilities through Care Subsidy to cover basic needs, with residents contributing via daily and means‑tested fees, plus accommodation costs if applicable.

Eligibility and Assessment

To access care, you need two main things:

  • Aged 65 or older (50+ for Aboriginal peoples).
  • An assessment from the Aged Care Assessment Team (ACAT or ACAS) confirming residential care is required.

After registering with My Aged Care, a trained assessor visits you at home to evaluate your health, mobility, cognitive function and living situation.

Commonwealth Subsidy Scheme

Caring providers receive a daily subsidy per resident based on care needs. This covers meals, nursing, recreation, cleaning and medical oversight.

You’re responsible for paying:

  • A Basic Daily Care Fee (up to 85% of the full pension).
  • A Means‑Tested Care Fee if your income/assets exceed thresholds.
  • Accommodation fees via a refundable deposit or daily charge for premium rooms.

Types of Rooms and Accommodation Costs

Care facilities offer different types of rooms:

  • Standard room: Subsidised, often shared or simple single.
  • Premium room: Single rooms with ensuite or nicer location, paid via Refundable Accommodation Deposit (RAD) or Daily Accommodation Charge (DAC).

You can choose to pay RAD upfront or DAC daily, or a mix of both. RAD gets refunded (minus deductions) when you leave or pass away.

Understanding Care Fees

Basic Daily Care Fee (DDCF)

This is mandatory for all residents and covers everyday care services. Centrelink automatically deducts or bills this fee, which is capped.

Means‑Tested Care Fee (MTCF)

If your assessable income/assets exceed limits, you pay an extra care contribution each year. This fee is indexed and capped. If your partner remains at home, thresholds are adjusted to protect part of your pension.

Services and Quality of Care

Expect services including:

  • 24/7 nursing and personal care.
  • Meals (special diets available).
  • Recreational and social activities.
  • Medical and allied health support — physiotherapy, podiatry, dental checks.
  • Spiritual, cultural, or dementia‑specific programs.

The Aged Care Quality and Safety Commission inspects all residential homes and publishes star ratings on compliance and resident outcomes.

Choosing a Provider

With hundreds of aged care facilities across Australia, it pays to compare. Look at:

  • Quality ratings and inspection reports.
  • Room availability, RAD/DAC pricing and refund policies.
  • Staffing levels and continuity of carers.
  • In‑house services like hairdressing, manicure, or allied health.
  • Social, cultural or dementia programs suited to your needs.

Moving In: What to Expect

  • You’ll sign admission contracts outlining fees, services, refund terms.
  • A care plan is agreed upon within the first week.
  • Expect an orientation day—meet staff and other residents.
  • First month usually includes review of fees and needs as you settle in.

Dementia Care and Specialist Programs

Many homes have dedicated dementia care wings with specially trained staff, secure layouts and memory‑focused social activities. When registering, let the assessor know if dementia support is required.

Rights of Residents and Advocacy

  • As a resident, you have rights under the Aged Care Charter: dignity, choice, safety, privacy, and quality of care.
  • Family members can hold meetings, raise concerns, and appeal decisions.
  • Free advocacy support is available via community organisations like OPAN.

Fees: Common Questions

Can I negotiate fees?
Daily care fees are fixed, but optional services can sometimes be negotiated.
What if I run out of funds?
Means-tested fees reduce or stop if your assessable assets fall below thresholds.
Are RAD refunds always paid quickly?
By law, providers must return RAD refunds within 14 days. Small delays sometimes occur.

Planning Finance & Estate Advice

Financial advisers help with:

  • Comparing RAD vs DAC options.
  • Gifting limits for means-testing.
  • Pension Loans Scheme decisions.
  • Estate planning to balance inheritance, tax, and care costs.

Mental Wellbeing in Residential Care

Good facilities offer programs to keep residents engaged: music therapy, gardening, intergenerational programs, pet visits, storytelling and brain games. Loneliness and depression can be reduced when residents feel valued and connected.

Care During COVID and Health Crises

Homes now follow strict infection control protocols. Visitors may be screened, and residents are often supported with telehealth or in-room activities during restrictions.

When Needs Change Over Time

If your care needs escalate—say, from mobility issues to full dependency—the facility reassesses your funding with Commonwealth subsidy adjustments. Your fees may increase or change based on the new level of disability.

Transferring Between Aged Care Homes

If you move to a new facility, your subsidy and care plan transfer with you. Choose carefully, as RAD and DAC agreements may differ—and you’ll need exit refund terms clarified.

Complaints and Oversight

  • Speak with provider’s complaint contact person.
  • If unresolved, escalate to the Aged Care Quality Commission.
  • Advocate or family members can lodge complaints on your behalf.

Real Residents’ Stories

Margaret (85) moved into care after a fall. She chose a standard room and kept enough savings to see regular visits from her grandchildren. She enjoys dance sessions and choir once per week.

Frank (90) opted for a premium suite and uses telehealth visits for GP checkups. His MTCF is low since he assets assessment dropped after selling his home.

Your Checklist Before Choosing a Home

  • Complete eligibility assessment with My Aged Care.
  • Visit multiple facilities—ask questions, see menus, meet staff.
  • Get detailed quotes for RAD, DAC and discretionary services.
  • Review refund policies and exit timelines.
  • Check family visitation and feedback forums.
  • Confirm staff ratios and care team consistency.
  • Learn how complaints are handled.

Glossary of Common Terms

ACAT / ACAS
Aged Care Assessment Team.
Care Subsidy
The government payment to providers for resident care.
DDCF
Basic Daily Care Fee.
MTCF
Means‑Tested Care Fee.
RAD / DAC
Refundable Accommodation Deposit / Daily Accommodation Charge.

Important Links and Resources

Final Thoughts

Residential aged care is often a major transition—but with the right information, planning and support, it can be a safe, dignified and enriched chapter in your life.

At Silver Lifestyle, we’re committed to making this complex topic understandable and empowering. Understanding eligibility, comparative fees, and care quality helps seniors and families make decisions with clarity and confidence.

No matter where this journey takes you, you deserve comfort, respect, and choice.