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How does residential aged care funding work in Australia?

Residential aged care is provided in aged care homes for those who need more care than may be provided in their own homes, with services including tending, accommodation, meals and laundry and nursing.
The government pays for the majority of aged care in Australia. this is often via paying care subsidies and supplements to providers (i.e. nursing homes). However, residents of aged care homes could also be asked to contribute toward the value of their care and accommodation if they will afford to try and do so.

How is residential aged care funding works in Australia

The Australian Government subsidises a variety of aged care homes in Australia. this suggests affordable care and support services are often accessed by those that need it. The subsidies are paid on to the aged care home. the quantity of funding that a home receives relies on:
an assessment of your care needs by the house (using a tool called the Aged Care Funding Instrument or ACFI) what quantity you’ll be able to afford to contribute to the value of your care and accommodation (using an income and assets assessment) to urge the funding, subsidised aged care homes should meet Aged Care Quality Standards to confirm quality care and services are provided.
Nursing homes are go by a spread of organisations referred to as aged care providers. These include faith- and religious-based groups; community organisations; charities; private businesses; publicly listed companies; health insurers; and state governments, particularly in regional and remote areas.
Nursing home (aged care home) residents are given assistance with a spread of activities including:
  • everyday tasks like meals, cleaning, and laundry
  • personal care, like showering, toileting, dressing and eating
  • 24-hour medical care from qualified nursing staff, including medication management, rehabilitation, continence, and catheter care, and wound treatment
The Australian Government is the primary funder and regulator of the system. Total government expenditure on aged care services was around $15.8 billion in 2014–15, with the Australian Government providing approximately 95 percent of this funding. The Aged Care Act 1997 (the Act) and associated Aged Care Principles started out the legislative framework for the funding and regulation of aged care, although services also are provided through contractual arrangements outside of the Act. The Australian section of Health (DoH) is to blame for the operation of the Act.


This quick guide provides a quick overview of aged care in Australia. It describes the kinds of care provided, arrangements for accessing subsidised care, statistics on aged care, the organisations that provide care, and therefore the regulatory arrangements for ensuring quality care. the short guide doesn’t describe care that’s provided outside of the formal aged care system, like care provided by relations or accommodation in retirement villages. In a nutshell, the price of care in Australia is kind of expensive. The rest home will always receive a collection amount of funding that supported the care requirements of the resident. The proportion of what proportion the govt. pays and the way much the resident pays of this funding really depends on whether the resident has the means to contribute.
A version of this article was originally published on, and
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