Residential aged care — what it is and how it works

What is residential aged care?

Residential aged care (also called a nursing home or aged care home) provides 24-hour care for people who can no longer live safely at home, even with home care support. It includes meals, accommodation, personal care, and clinical care.

Moving into residential care is a significant decision. It doesn't have to be permanent — some people use it for short-term respite while recovering from a hospital stay.

When should you consider it?

Residential care is usually considered when:

• Home care, even at the highest level (Level 4), is no longer meeting the person's needs
• Safety at home has become a serious concern (falls, wandering, medication management)
• The carer's capacity is exhausted
• A hospital discharge planner or GP recommends it

How to get into residential care

You need an ACAT (Aged Care Assessment Team) assessment that approves you for residential care. If you already have an ACAT assessment for home care, you may need an updated one.

1. Call My Aged Care: 1800 200 422
2. Request an ACAT assessment
3. Receive your approval letter
4. Search for homes using the My Aged Care Find a Provider tool
5. Apply to multiple homes — you can be on several waiting lists at once
6. Accept an offer when a suitable place becomes available
7. Complete a means assessment with Services Australia to determine your fees

Finding the right home

Things to consider when choosing a home:

• Location — close to family and familiar surroundings matters for wellbeing
• Star Rating — the government's quality rating for each home, visible on My Aged Care
• Cost — compare the RAD and daily fees
• Availability — ask about current and anticipated vacancies
• Visiting policy — can family visit freely?
• Culture and feel — visit in person if possible

What does it cost?

Three separate fees apply:

• Basic daily fee — $66.80/day. Everyone pays this.
• Means-tested care fee — based on your income and assets. Not everyone pays this.
• Accommodation payment (RAD or DAP) — if you're not eligible for government assistance.

Read the full costs guide → or use the cost calculator to estimate your fees.

Your rights in residential care

Under the Aged Care Act 2024, every residential care resident has rights including:

• Safe and quality care
• Dignity and respect
• Freedom from abuse and neglect
• The right to make decisions about your own care
• The right to have a support person or advocate present at any meeting

If you have concerns about the quality of care, contact the Aged Care Quality and Safety Commission: 1800 951 822.

Leaving residential care

The RAD is refundable when you leave care. If you entered care before 1 November 2025, your RAD remains 100% refundable. If you entered care on or after 1 November 2025, the RAD balance is reduced by 2% of the amount paid each year for the first five years — a maximum retention of 10%. The balance can also be reduced if you agreed to have ongoing fees deducted from your RAD. The home must refund your RAD balance within 14 days of departure.

Rules current as at November 2025. Always verify current rates with My Aged Care or a financial adviser.

If the care isn't right, you can move to a different home. Your approved ACAT assessment remains valid.