How the aged care system actually works

The Australian aged care system is genuinely confusing — not because the people running it are trying to make it hard, but because it has grown over decades with layers of programs, assessments, and acronyms that were never designed to be navigated all at once. This guide cuts through that.

The one thing you need to know first

Everything starts with My Aged Care. It is the government's gateway to all funded aged care services. Until someone is registered with My Aged Care, they cannot access any government-funded aged care. Call 1800 200 422 or visit myagedcare.gov.au.

The wait clock starts from registration, not from when you first need care. Register early — even if you're just planning ahead.

The two main pathways

Most people come to aged care through one of two pathways:

• Home care — support to stay living at home. This is now delivered through the Support at Home program.
• Residential care — moving into an aged care facility (a nursing home or residential aged care home).

Both pathways require an assessment first.

The ACAT assessment

An Aged Care Assessment Team (ACAT) assessment — called ACAS in Victoria — is a free government assessment that determines what level of care someone is eligible for. You cannot access government-funded home care packages or residential aged care without one.

To request an ACAT assessment, register with My Aged Care first. An assessor then visits in person. Important: describe the hard days, not the good ones. Assessors see people at their best. If you present well on the day but struggle on bad days, say so.

The Commonwealth Home Support Programme (CHSP)

CHSP provides entry-level services for older Australians who need a small amount of support at home — help with cleaning, meals, transport, or social connection. It does not require an ACAT assessment. It is funded until at least July 2027.

Support at Home

Support at Home replaced Home Care Packages from November 2025. It has 8 funding levels, from approximately $11,000 to $78,000 per year, based on assessed need. The program is designed to keep people living at home for as long as possible. It is means tested — your contribution depends on your income and assets.

The family home is not counted for home care means testing.

Residential aged care

Residential aged care — nursing homes — are funded by the government with a contribution from the resident based on means testing. An ACAT assessment approves eligibility. The main financial considerations are the basic daily fee (approximately $65/day), the means-tested care fee, and the Refundable Accommodation Deposit (RAD) — a lump sum that is refundable when the resident leaves (subject to retention rules for those who entered care on or after 1 November 2025).

The family home is exempt from the residential care assets assessment if a spouse, dependent child, or eligible carer continues to live there.