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What is the aged care sector in Australia?

5 min read

As of June 30, 2024, nearly 200,000 Australians were using permanent or respite residential care, demonstrating the scale of Australia's aged care sector. This complex system is designed to provide support for older people who need help with daily living and other needs, whether in their own home or in a residential facility.

Quick Summary

The aged care sector in Australia is a government-regulated system offering a range of services from basic home support to comprehensive residential care for older people, accessible through the My Aged Care gateway.

Key Points

  • Government-Regulated: The aged care sector in Australia is primarily government-funded and regulated to ensure quality and safety standards.

  • My Aged Care Gateway: The My Aged Care website and phone line are the entry points for accessing government-subsidised services, beginning with a needs assessment.

  • Home vs. Residential Care: Services are broadly categorised into Home Care (providing support in an individual's home) and Residential Aged Care (providing 24/7 care in a facility).

  • New Reforms: Significant reforms, including the new Aged Care Act 2024 and the upcoming Support at Home program, are reshaping the sector to be more rights-based and consumer-centric.

  • Workforce Challenges: The sector faces ongoing workforce challenges, with reforms aiming to attract and retain skilled staff to meet the growing demand.

  • Flexible Care Options: In addition to standard home and residential care, flexible options like Transition Care and Respite Care are available for short-term and specific needs.

In This Article

Understanding the Aged Care Sector in Australia

Australia's aged care sector is a multifaceted system providing support to older people and, in some cases, younger people with disabilities. It encompasses a wide array of services designed to meet diverse needs, from maintaining independence at home to offering 24-hour care in a residential facility. The system is primarily funded and regulated by the Australian Government, ensuring that services adhere to specific quality standards.

The aged care sector has evolved considerably over the years, with recent reforms stemming from the recommendations of the Royal Commission into Aged Care Quality and Safety. These reforms aim to improve transparency, accountability, and the overall quality of care, with significant changes like the new Aged Care Act 2024 coming into effect on November 1, 2025.

Key Components of Aged Care in Australia

Home Care

For many older Australians, the preference is to remain in their own homes for as long as possible. The home care system provides various levels of support to make this possible.

  • Commonwealth Home Support Programme (CHSP): This provides entry-level, basic support for older people. Services are designed to help with daily tasks and enable greater independence. Examples include domestic assistance, transport for appointments or shopping, and social support. It's often for people who require only a small amount of support.

  • Home Care Packages (HCP): These are for people with more complex care needs. A Home Care Package provides a coordinated set of services tailored to an individual's specific requirements. There are four levels of packages, with Level 1 for basic needs and Level 4 for high-level needs. Services can include personal care, nursing, allied health services, and assistive technology.

Residential Aged Care

Residential aged care is for older people who can no longer live safely or independently at home and require around-the-clock care. These facilities, often called nursing homes, provide accommodation, meals, and personal and clinical care.

  • Permanent Residential Care: This is for long-term residents who need ongoing support with daily tasks and medical needs. Residents have access to 24-hour nursing care, allied health professionals, and various social and recreational activities.

  • Residential Respite Care: This offers short-term care in a residential facility. It serves two primary purposes: providing a break for unpaid family carers and allowing an older person to recover after a hospital stay or period of illness. It can range from a few days to several weeks.

Flexible Care

This category covers a range of programs designed to meet specific needs or circumstances. It offers a bridge between hospital care and returning home or transitioning into long-term care.

  • Transition Care Program (TCP): This program provides short-term support for older people after a hospital stay. It can be delivered in a residential setting or at home and focuses on therapy and recovery to help a person regain their independence.

  • Short-Term Restorative Care (STRC): This is a goal-oriented program, available for up to eight weeks, designed to reverse or slow the decline in a person's ability to perform daily tasks. It provides a range of care options to improve wellbeing and independence.

Accessing the Aged Care System

The central gateway for accessing government-subsidised aged care services is the 'My Aged Care' website and contact centre. The process involves a needs assessment to determine eligibility and the appropriate level of care required. This assessment is conducted by an Aged Care Assessment Team (ACAT) for residential and home care packages, or a Regional Assessment Service (RAS) for home support services.

The Importance of Reforms

Recent reforms, spurred by the Royal Commission, have focused on addressing systemic issues, improving quality and safety, and putting the rights of older people at the centre of the system. The new Aged Care Act aims to create a simpler, more accessible system, while new funding models and regulatory bodies, like the Aged Care Quality and Safety Commission, work to ensure high standards of care.

Comparison of Home Care vs. Residential Care

Feature Home Care Residential Aged Care
Environment Stays in own, familiar home. Moves into a residential facility (nursing home).
Level of Care Varies, from entry-level support (CHSP) to complex packages (HCP). 24-hour, high-level care, including clinical and personal assistance.
Daily Life More independence and control over routines. Structured routine with set meal times and organised activities.
Social Interaction Can be less structured, relies on social support services or family visits. Built-in social network with other residents and staff; organised group activities.
Cost Combination of government subsidies and client contributions (basic daily fee and means-tested care fee). Accommodation costs, basic daily fee, and means-tested care fee, offset by government subsidies.
Suitability Best for those needing help with daily tasks who can still live largely independently. Best for those with complex needs, requiring continuous supervision and high-level medical support.

The Role of My Aged Care

My Aged Care acts as the entry point for anyone seeking government-funded aged care services. It provides a single point of contact, reducing confusion and simplifying the application process. It handles initial registrations, screens for eligibility, and arranges the necessary assessments. My Aged Care also provides comprehensive information and resources, helping individuals and their families make informed decisions about their care options. Understanding and navigating this system is a crucial step for anyone seeking support.

For more information on the official pathways and services, the Australian Government Department of Health and Aged Care is an authoritative resource.

The Aged Care Workforce

The aged care sector relies on a dedicated workforce of nurses, personal care workers, and allied health professionals. This workforce is responsible for delivering the day-to-day care that enables older Australians to live with dignity and respect. The reforms highlight the critical need to attract and retain skilled workers, addressing issues like staffing levels and training to ensure consistent, high-quality care across the sector.

The Future of Aged Care in Australia

With Australia's population continuing to age, the aged care sector is set for ongoing evolution. The new Aged Care Act is a significant step towards a more consumer-centric model, emphasising an older person's rights. The Support at Home program, set to roll out in November 2025, will further consolidate and streamline home care services, aiming for a more personalised and flexible approach. These changes reflect a societal shift towards promoting independence and ensuring that older Australians have greater choice and control over their care journey. Navigating this new landscape requires understanding the core components of the aged care system and staying informed about ongoing reforms and available support.

Frequently Asked Questions

The aged care sector in Australia is the system of services and support, largely government-funded, designed for older people who need help with daily living or medical care. It includes home-based support, residential care facilities, and short-term or flexible care options.

To access government-funded aged care services, you must first contact 'My Aged Care'. They will arrange a needs assessment to determine your eligibility and the type of services you require. This assessment can be done either by an Aged Care Assessment Team (ACAT) or a Regional Assessment Service (RAS).

Home care provides support services that allow an older person to remain living in their own home. Residential aged care involves moving into a dedicated facility, often called a nursing home, where 24-hour care and accommodation are provided for those with higher needs.

Home Care Packages (HCP) are a more comprehensive form of government-subsidised support for older people with complex needs who wish to remain living at home. They are tailored to an individual and available in four levels, from basic to high-level care.

If you receive government-subsidised aged care, you are expected to contribute to the cost if you can afford to. The amount you pay is determined by an income and assets assessment. Fees can include a basic daily fee and, for some, a means-tested care fee.

Major reforms are underway, driven by the Royal Commission into Aged Care. Key changes include a new Aged Care Act (effective 1 November 2025) focused on older people's rights, and the upcoming Support at Home program, which will streamline and simplify home care services.

The Aged Care Quality and Safety Commission is the independent regulator for aged care services in Australia. Its role is to protect and enhance the safety, health, wellbeing, and quality of life of people receiving aged care. It handles complaints, manages quality standards, and conducts compliance inspections.

Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.