1. What is Residential Aged Care?

Residential aged care — historically referred to as a nursing home, hostel, or aged care facility — provides supported accommodation for older Australians who require ongoing help with day-to-day living, chronic disease management, mobility, or advanced dementia care that cannot be sustainably maintained in their own home.

Across Australia, residential aged care is operated by a combination of not-for-profit organisations (such as church and charitable groups), private commercial providers, and state government health services. Regardless of ownership, all approved providers must comply with the strict clinical standards of the Aged Care Act 2024 and are monitored by the Aged Care Quality and Safety Commission (ACQSC).

2. Eligibility & The ACAT Requirement

To move into an accredited Australian residential aged care home, a person must meet two fundamental statutory criteria:

  1. Age Threshold: 65 years or older (50 years or older for Aboriginal and Torres Strait Islander Australians). Under exceptional circumstances, younger individuals with severe disabilities may be considered if no suitable alternative care exists.
  2. Approved Clinical Assessment: You must have a current, approved assessment from the Single Assessment System (formerly known as an ACAT approval). An assessor evaluates your physical independence, clinical needs, and cognitive health.
Explore Assessment Preparation
If you haven't completed your evaluation yet, review our step-by-step ACAT Assessment Guide and examine the 42 Practice Questions asked by clinical assessors.

3. Clinical Staffing & Quality Standards (215 Minutes Mandate)

Following the Royal Commission into Aged Care Quality and Safety, Australia established rigorous statutory staffing mandates that every facility must meet:

  • 24/7 Registered Nurse On-Site: An accredited Registered Nurse (RN) must be physically present on-site 24 hours a day, 7 days a week in every aged care home.
  • 215 Direct Care Minutes Per Day: Facilities must provide an average of 215 care minutes per resident per day, of which at least 44 minutes must be directly delivered by a Registered Nurse.
  • Clinical Governance Framework: Facilities must have a formal clinical governance committee responsible for infection control, medication management, wound care, and palliative pathways.

4. How to Evaluate Facilities Using Star Ratings

The Australian Government publishes a 1 to 5 Star Rating for every residential care home. Ratings are updated quarterly and based on four objective sub-scores:

1. Compliance (30% Weighting)

Measures regulatory audit performance against the 8 Aged Care Quality Standards and any non-compliance notices or sanctions.

2. Residents' Experience (33% Weighting)

Surveys at least 10% of residents annually regarding food quality, independence, safety, dignity, and staff kindness.

3. Staffing (22% Weighting)

Compares actual reported care minutes per resident against the statutory 215-minute and 44-minute RN targets.

4. Quality Measures (15% Weighting)

Tracks 5 clinical indicators: pressure injuries, physical restraint use, unplanned weight loss, falls with major injury, and polypharmacy.

5. Residential Aged Care Fees Overview

Financial arrangements in residential aged care are governed by the Commonwealth statutory schedule. There are four potential fees:

1. Basic Daily Fee (Mandatory for All)

$61.96 / day

Set at 85% of the standard single basic Age Pension. Covers meals, laundry, cleaning, and heating.

2. Means-Tested Care Fee (Means-Tested)

Up to $34,174 / yr

An additional clinical contribution determined by Centrelink based on your assessable income and assets. Subject to lifetime statutory caps.

3. Accommodation Payment (Room Price)

RAD or DAP

The cost of your room. Can be paid as a refundable lump sum (RAD), a daily interest payment (DAP at 8.38% MPIR), or a combination. Use our RAD vs DAP Calculator to compare tradeoffs.

4. Extra / Higher Everyday Living Fees (Optional)

Variable ($10–$60+/day)

Discretionary fees charged for premium services such as on-site hairdressing, wine with meals, Foxtel in rooms, or chef-curated menus.

6. Key Steps to Selecting the Right Care Home

  • Visit at Different Times: Tour prospective facilities during meal times or on weekends to observe actual staffing presence and atmosphere.
  • Inspect the Specific Room Offered: Verify natural light, bathroom privacy, distance from nursing stations, and noise levels.
  • Ask for an Itemised Fee Schedule: Request clear written confirmation of any compulsory Extra Service Fees or asset retention fees before signing.
  • Explore Local Directories: Browse verified local care options, such as our Perth Residential Aged Care Directory.