Understanding Residential Aged Care: Eligibility, Costs, and Where to Start
Making the decision to move into residential aged care is never easy — for older Australians or for their families. It often comes after a period of declining health, increased care needs, or growing concern about safety and wellbeing at home. Understandably, it’s a time filled with questions, emotions, and the need for clear information.
Residential aged care (often called a nursing home) is designed to support people who can no longer live independently, offering 24-hour care, meals, activities, and medical support in a safe and supportive environment.
Whether you're beginning to explore this option for yourself or a loved one, this guide will walk you through the key things to know — including who’s eligible, how the costs work, and where to begin your search. With the right information and support, this transition can be made with greater confidence and care.
Who Is Eligible for Residential Aged Care?
To access residential aged care in Australia, you need to be assessed by an Aged Care Assessment Team (ACAT, or ACAS in Victoria). This assessment helps determine whether you or your loved one’s care needs can still be met at home, or if more intensive, ongoing support is required in a residential setting.
The ACAT assessor — usually a nurse, social worker, or other health professional — will talk to you about your health, how you’re managing at home, and what support you might need day-to-day. They may speak with your family or carer if that’s helpful for you.
You may be eligible for residential aged care if you:
Need help with most daily tasks, like showering, dressing, or preparing meals
Have complex medical needs or frequent hospital visits
Are no longer safe living alone at home, even with supports in place
Have a carer who is no longer able to meet your needs
You can apply for an assessment through the My Aged Care website or by calling 1800 200 422.
It’s free, and you’ll receive a decision about your eligibility once the assessment is complete.
Even if you’re not ready to move into care just yet, having an assessment done early can be helpful — especially if your needs change unexpectedly down the track.
When Might Someone Need Residential Aged Care?
Deciding when it’s time to consider residential aged care can be one of the hardest parts of the journey. There’s rarely a perfect moment — but there are signs that the current support isn’t enough and that a higher level of care may be needed.
Here are some common situations that may signal it’s time to explore residential care:
Frequent Hospital Stays or Medical Needs
Ongoing health issues that lead to regular hospital visits or the need for 24/7 medical supervision may indicate that home is no longer the safest option.
Living at Home Feels Unsafe or Is No Longer Sustainable
Falls, medication mistakes, or difficulty managing daily activities like cooking, bathing, or getting dressed can suggest that more support is needed than can be provided at home.
Carer Stress or Burnout
Family members or partners providing care may feel overwhelmed or physically exhausted. It’s important to recognise when carers are no longer able to meet increasing needs, even with support.
Support at Home Isn’t Enough, Even with a Package
Sometimes, even with a Home Care Package in place, the level of care required exceeds what can be safely delivered at home.
Short-Term Needs (e.g. Respite or Post-Hospital Stay)
Some people may need residential care for a short period — such as after surgery or while their carer takes a break — before returning home.
I actually often recommend a period of Residential Respite prior to Permanent Care. A ‘try before you buy’ if you will. You may find during your stay that you or a loved one actually find it very supportive and lovely and don’t want to leave- this is a fabulous outcome.
3 Tips on Where to Start Looking for a Residential Aged Care Home
Once you’ve received ACAT approval for residential aged care, the next step is finding a home that feels right — for you or your loved one. It can be a big decision, but knowing where to start can make the process more manageable.
Tip 1: Use the My Aged Care “Find a Provider” Tool
This free online tool helps you search for government-accredited aged care homes in your area. You can filter by location, availability, types of care, and extra services.
Find a provider – My Aged Care
Look for homes with availability and read about their services, pricing, and room options.
Tip 2: Ask for Recommendations
Talk to:
· Your GP or hospital discharge planner
· Aged care placement consultants
· People in your local community or support groups, friends and neighbours.
Word of mouth can offer valuable insights that aren’t always visible online (both the good and the bad).
Tip 3: Tour a Few Homes (In Person or Virtually)
Visiting a few homes can help you compare environments and ask important questions. Look for:
· Cleanliness and comfort
· How staff interact with residents
· Meal quality and activity options
· Cultural or language support (if important to you)
· It might sound funny but the feel. How does it make you feel?
Don’t be afraid to ask about staff ratios (and staff turn over rates), visiting hours, or how care plans are developed.
Talk to:
· Your GP or hospital discharge planner
· Aged care placement consultants
· People in your local community or support groups; don’t forget your friends or neighbours.
Word of mouth can offer valuable insights that aren’t always visible online (both the good and the bad)
Understanding the Costs
Residential aged care is partly funded by the Australian Government, but there are still costs involved depending on your financial situation. Knowing what to expect can help you plan ahead and avoid surprises.
Here’s a breakdown of the main fees:
Basic Daily Fee
Everyone pays this fee. It helps cover everyday living costs like meals, cleaning, laundry, and heating.
It’s set at 85% of the full Age Pension — even if you’re not receiving the pension.
Means-Tested Care Fee
This fee is based on your income and assets. It helps cover your personal and clinical care (such as nursing support, showering, dressing, or mobility assistance).
· Some people don’t have to pay it at all.
· There are annual and lifetime caps on how much you can be charged.
Accommodation Payment
This covers the cost of your room. You may pay:
· A Refundable Accommodation Deposit (RAD) — a lump sum (fully refundable)
· A Daily Accommodation Payment (DAP) — an ongoing daily fee
· Or a combination of both
If you have low assets or income, the government may cover part or all of this cost.
Additional Services or Extra Fees
Some homes offer extra lifestyle or hotel-style services — like upgraded rooms, wine with meals, or more activity options. These come with extra daily charges and are optional.
To get a clearer picture of what you might pay, you can use the My Aged Care Fee Estimator. It’s a helpful tool to explore scenarios based on your income and assets. Services Australia
The Services Australia website also contains a lot of information to start you off. You can also make an appointment to sit down with a Services Australia Aged Care Specialist Officer (ACSO) who will able to provide more information on the costs.
Final Thoughts
Making the move into residential aged care is a significant step — one that often comes with mixed emotions and a long list of questions. It’s natural to feel uncertain, but you don’t have to navigate it alone.
By understanding the eligibility requirements, getting clear on the costs, and knowing where to start your search, you can feel more confident and in control during what can be a very emotional time.
Remember, residential aged care is not about giving up independence — it’s about getting the right support in a safe and caring environment, when living at home is no longer the best option.
If you're just beginning this journey, take it one step at a time. Start with an ACAT assessment, explore a few homes, and reach out for help when you need it. Support is available — for you and your family.
