Residential Aged Care Facilities vs. Home Care Providers

There are 2 main types of aged care services that are government supported. Residential Aged Care Facilities and Home Care Providers. In fact, Many Residential Aged Care Facilities now also provide Home Care too. This makes sense, since at least some Home Care clients will need Residential Aged Care at a later stage.

Residential Aged Care Facilities

Residential aged care refers to what used to be called ‘Nursing Homes’. These are specially equipped facilities designed specifically for the care of elderly people who can no longer live alone or with family members. Usually, this is due to health issues. Most common among these is dementia or a tendency to fall.

forms at Centrelink can be almost 30 pages long!

Generally, the level of care in Australia is very high. Better still, there is a wide choice of facilities and locations. In fact, you can choose from beachfront to mountainside, far away or in your local suburb. Plus, the level of services or luxury ranges from simple & friendly to 5 star hotel quality. All this is brilliant but it sometimes comes at a very high cost (more about that below).

Home Care Providers

Home Care relates to aged care services provided in a person’s home. Home Care tends to cover a broad range of services. In fact, it could include anything from help with the garden to physiotherapy. Often, with Home Care, the elderly person can choose the services that best meet their needs. This just has to work within a budget allocated by the government, based on your needs assessment.

Best of all, they get to remain in their home.


Much of the care people receive in Australia, whether Home or Residential, is subsidised under different Government programmes. Happily, to find out what you may be eligible for you only need contact the Australian Government. However, aged care funding and services options can be confusing and very costly.

For example, you will likely be expected to help with the costs of your own care. This is, of course, all depending on your financial situation. For example, if you own a home you may have to sell it to pay a refundable deposit to the aged care facility.

AGed Care costs typically are extremely high

In any case, step 1 is to get professional advice. Email and we will direct you to an expert. They may help you to:

  • Estimate the costs
  • Arrange a financial assessment with the Government
  • Determine what you may have to pay – fees often include:
    • a daily fee of 85% of the single person rate of the basic age pension
    • A further fee if your combined income and assets are over a certain amount
    • More fees for accommodation costs (you may be eligible for help with accommodation costs)
    • A deposit of Hundreds of thousands, sometimes over a Million, dollars!

Get professional advice

Worse still, application forms at Centrelink can be almost 30 pages long! As such, the risks of making a costly mistake are high.

Check out this informative video by Joseph Palmer & Sons about the experiences of some of their clients.

In fact, costs typically are extremely high for aged care. That’s why we suggest you get professional advice before you begin filling in forms or visiting facilities. In short, you get what you pay for but high quality room finishes & extra services can be very expensive. Therefore, having an expert negotiate on your behalf often leads to extremely favourable deals.

Call (03) 9043-1717 for advice

Aged Care Weekly can connect you with reputable providers in Melbourne. Call (03) 9043- 1717, email