What Every Australian Family Should Know Before They Need Aged Care

The most common thing I hear from families navigating the aged care system for the first time is this — I wish someone had told us this earlier. Aged care in Australia is complex, emotionally overwhelming, and often needs to be navigated at exactly the moment when families are least equipped to deal with complexity. The time to understand the system is before you need it — not during a crisis. Here’s everything every Australian family should know.

The Australian Aged Care System — A Plain English Overview

Australia has one of the most comprehensive aged care systems in the world — but it’s also one of the most complex to navigate. Understanding the basics before you need them makes an enormous difference when the time comes.

The two main types of aged care:

Home care — staying at home with support Most older Australians want to stay in their own home for as long as possible — and the Australian government has significant funding available to support this. Home care services can include personal care, nursing, domestic assistance, meal preparation, transport, and home modifications.

Access to government funded home care is through the Home Care Packages program — with four levels of funding ranging from approximately $10,000 to $60,000 per year depending on care needs.

Residential aged care — moving into a facility When home care is no longer sufficient residential aged care provides 24 hour support in a purpose built facility. This is what most people think of when they think of aged care — and it’s what I work in.

Residential aged care is funded by the federal government with residents contributing to costs based on their income and assets.

My Aged Care — The Starting Point for Everything

myagedcare.gov.au is the Australian government’s central portal for accessing aged care services. Every journey through the aged care system starts here.

My Aged Care provides:

• Information about available services
• Referrals for assessment
• Help finding local service providers
• A client record that travels with your loved one through the system

The first step for any family considering aged care is registering with My Aged Care — either online or by calling 1800 200 422. This triggers the assessment process that determines what level of government funded support your loved one is eligible for.

The Assessment Process

Before receiving government funded aged care services your loved one needs to be assessed by one of two assessment teams depending on their needs.

RAS — Regional Assessment Service For lower level home support needs. A RAS assessor visits the home and determines eligibility for the Commonwealth Home Support Programme — entry level home care services.

ACAT — Aged Care Assessment Team For higher level home care packages or residential aged care. An ACAT assessment determines eligibility for Home Care Packages and residential aged care funding.

Key things to know about assessments:

• Request an assessment early — waiting lists exist and getting assessed before a crisis means support is available when needed
• A family member or support person can be present during the assessment
• Be honest and comprehensive about your loved one’s needs — assessors can only fund what they know about
• If you disagree with the assessment outcome you have the right to request a review

The Cost of Aged Care — What Families Need to Know

Aged care costs in Australia are complex and frequently misunderstood. Here’s a plain English breakdown.

Home Care Packages: The government funds the majority of home care costs. Residents contribute a basic daily fee — currently approximately $12 per day — and potentially an income tested care fee based on their income.

Residential aged care: Costs have three components:

Basic daily fee — approximately $60 per day — covers daily living costs like meals, laundry, and utilities. Everyone pays this.

Means tested care fee — an additional contribution toward care costs based on income and assets. Not everyone pays this — it depends on your financial situation.

Accommodation costs — the cost of your room. Paid as a lump sum Refundable Accommodation Deposit — RAD — or as a daily accommodation payment — DAP — or a combination of both. The RAD is refunded when the resident leaves the facility.

Getting financial advice before entering residential aged care is strongly recommended. The interaction between aged care costs, the Age Pension, superannuation, and the family home is complex — a financial adviser who specialises in aged care can save families significant money.

The Family Home — A Critical Consideration

For most Australians the family home is their most significant asset — and its treatment in the aged care means testing is one of the most important and most misunderstood aspects of the system.

Key points:

• The family home is exempt from the assets test for residential aged care for the first two years if a protected person — spouse, dependent child, or carer — continues to live in it
• After two years the home may be included in the assets assessment
• The decision about whether to sell the family home to pay a RAD or retain it has significant financial implications that require professional advice
• The family home remains exempt from the Age Pension assets test regardless of the resident’s aged care situation as long as a protected person lives in it

Choosing the Right Aged Care Provider

Not all aged care facilities are equal — and choosing the right one for your loved one is one of the most important decisions a family will make.

What to look for:

Staff to resident ratios Higher staffing levels generally mean better care. Ask specifically about staffing levels on weekends and overnight when staffing is typically lower.

Staff turnover High staff turnover is a warning sign. Consistent familiar faces are important for residents — particularly those with dementia. Ask about average staff tenure.

The feel of the place Visit at different times of day — not just during a scheduled tour. Notice whether residents seem engaged and content. Notice whether staff interact with residents warmly. Notice whether the facility feels lived in and homely or institutional and cold.

Food quality Food is enormously important to residents’ quality of life and dignity. Ask to see the menu. Ask about special dietary requirements. Ask whether residents have input into meal choices.

Activities program A rich and varied activities program is fundamental to residents’ mental health, social engagement, and sense of purpose. Ask to see the activities calendar.

Accreditation status All residential aged care facilities in Australia are accredited by the Aged Care Quality and Safety Commission. Check a facility’s compliance history at agedcarequality.gov.au before committing.

Location Proximity to family significantly affects how often residents receive visitors — which as I discussed in my previous post is one of the most important factors in resident wellbeing. A slightly less impressive facility close to family often produces better outcomes than a premium facility far away.

Your Rights as a Consumer of Aged Care

Every Australian receiving aged care services has rights protected under the Aged Care Act and the Charter of Aged Care Rights.

Key rights include:

• To be treated with dignity and respect
• To have your identity, culture, and diversity valued
• To live without abuse or neglect
• To be informed about your care and services
• To have control over and make choices about your care
• To have your privacy and confidentiality respected
• To be listened to and to have complaints addressed

If you have concerns about the quality of care: Contact the Aged Care Quality and Safety Commission on 1800 951 822. This is the regulatory body responsible for investigating complaints about aged care providers.

You can also contact the Older Persons Advocacy Network — OPAN on 1800 700 600 for free independent advocacy support.

Planning Ahead — The Most Important Advice I Can Give

The families who navigate aged care most successfully share one characteristic — they planned ahead.

The documents every older Australian should have in place:

Enduring Power of Attorney Appoints someone to make financial and legal decisions if you lose capacity. Without this families may need to apply to the courts for guardianship — an expensive and time consuming process that often happens at the worst possible moment.

Enduring Power of Guardianship Appoints someone to make personal and lifestyle decisions — including health care decisions — if you lose capacity.

Advance Care Directive Documents your wishes about medical treatment — including end of life care — so that healthcare providers and family know what you want even if you can’t express it yourself.

Will Ensures your assets are distributed according to your wishes after death. Dying without a valid will — dying intestate — creates significant complications and expense for families.

Having these documents in place before they’re needed is one of the greatest gifts you can give your family. The conversations are sometimes difficult — but they are far less difficult than making these decisions in a crisis without knowing what your loved one would have wanted.

Resources for Australian Families

My Aged Care — myagedcare.gov.au — 1800 200 422 The starting point for all aged care services in Australia.

Aged Care Quality and Safety Commission — agedcarequality.gov.au — 1800 951 822 For complaints and concerns about aged care quality.

Older Persons Advocacy Network — OPAN — opan.org.au — 1800 700 600 Free independent advocacy for older Australians and their families.

Carer Gateway — carergateway.gov.au — 1800 422 737 Support services for family carers.

Services Australia — servicesaustralia.gov.au — 1800 227 475 For Age Pension and aged care fee assessments.

The Bottom Line

Navigating the aged care system is genuinely complex — but it’s far more manageable when you understand it before you need it. The families who plan ahead, who understand the system, who know their rights, and who make their wishes clear give themselves and their loved ones an enormous advantage when the time comes.

Start the conversation now. Not when a fall forces it. Not when a diagnosis makes it urgent. Now — when there’s time to think clearly, to plan carefully, and to make decisions based on values and wishes rather than crisis and emotion.

Your loved ones deserve that. And so do you.

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