Transitioning into an aged care facility can feel overwhelming. Location, costs, and compliance issues are but some of the factors to be considered.
Aged care facilities can be either fully or partially government funded, or entirely resident funded. The business models of each are vastly different, as are the fees.
Government funded facilities are governed by the Aged Care Act 2025, require assessment through the Single Assessment System, have regulated fees assessed through government means testing, and complaints dealt with by the Aged Care Quality and Safety Commission.
In Short
- Regulatory differences: Government-funded facilities are strictly regulated under the Aged Care Act 2025, while private options operate under the NSW Retirement Villages Act and standard consumer law.
- Private care models: Self-funded aged care encompasses a range of options, including premium assisted living, short-term private respite, and standard retirement villages with in-home clinical care.
- Protect your interests: Prospective residents are urged to look beyond the brochure and seek independent legal advice to understand complex entry fees, exit fees, and care quality guarantees.
Entry assessment through the Single Assessment System is a clinical assessment conducted by a health care professional at home or hospital and fully funded by the federal Government.
Fully private or unfunded facilities, on the other hand, are governed by the NSW Retirement Villages Act and general Consumer Law. They can provide immediate entry determined by the provider, have fees set by market competition through private contracts, and complaints dealt with by NSW Fair Trading or NSW Health Care Complaints Commission. Such private nursing facilities are not required to comply with the provisions of the Aged Care Act 2025.
Private, unfunded facilities fall under three main categories:
Assisted Living or Supported Living
These are premium hybrid model self-funded facilities that connect independent retirement village living with nursing home level care. Residents privately lease or purchase an apartment and pay additional out of pocket add-on expenses on a user pay basis. They are governed by the NSW Retirement Villages Act 1999 and general Australian Consumer Law.
Private-Pay Respite and Micro-Facilities
Small, self-funded facilities that offer short term respite care to not more than about 10 residents at full commercial rates. They offer personalised care with common facilities.
Private Home Care in a Retirement Setting
This is standard retirement village accommodation where the facility offers independent, private nursing agencies to deliver 24 hour clinical care directly to the resident’s apartment, avoiding resident relocation.
In deliberating available options for aged care facilities, it is important to look beyond the brochure. Legal advice is imperative to fully understand contractual agreements including entry and exit fees, residential conditions, and the level and quality of care on offer.
Need guidance on aged care contracts? Contact Cecilia Castle at Castle Lawyers in Asquith for expert legal advice tailored to your family's transition.
