Key facts
- Aged care residents are being charged daily fees for services they cannot use or understand.
- One family received nearly $37,000 in refunds after challenging these charges.
- The national regulator is investigating multiple aged care providers for alleged illegal fee practices.
- A class action lawsuit has been filed against Arcare for similar alleged fee misconduct.
- New government fees (Helf) are intended for premium services but raise concerns about reduced standard care.
Aged care residents across Australia are reportedly being charged significant daily fees for services they cannot physically access or comprehend, leading to widespread concern and regulatory action. Jeff Gilling discovered his mother, Dorothy, who had advanced dementia, was being charged $52 per day for services like Foxtel, wine, and newspapers, which she could not use.
Despite the emotional pressure of ensuring his mother received adequate care, Gilling researched his mother's rights and successfully challenged the fees, securing nearly $37,000 in refunds from Estia Health's Epping facility. His experience highlights a broader issue affecting many families.
The Aged Care Quality and Safety Commission has received 199 complaints regarding fees and charges in residential facilities in the first half of 2026 alone. The commission is investigating several providers for alleged misuse of fees, with a focus on both for-profit and not-for-profit entities.
In parallel, the for-profit provider Arcare is facing a class action lawsuit. The suit alleges Arcare illegally charged residents for services such as high teas and meals, even when residents were unable to partake due to health issues. It also claims Arcare charged for basic services that are legally mandated.
According to aged care legislation, fees for additional services can only be charged if the resident agrees, can access and benefit from them, and has the capacity to use them. Gilling successfully argued this point to Estia Health, leading to his substantial refund.
Concerns have also arisen regarding the government's Higher Everyday Living Fee (Helf), introduced to allow charges for premium services. The Aged Care Quality and Safety Commission's commissioner, Liz Hefren-Webb, expressed worry that some providers might be reducing the quality of standard meals and services to pressure residents into purchasing these premium options.
Dr. Sarah Russell of Aged Care Matters noted that providers can set the cost and inclusions for Helf, with examples of volunteer-provided entertainment being charged as an extra service. This has led to fears of a 'two-tier' system in aged care, separating those who can afford additional services from those who cannot.