Key takeaways
- Most people want to stay home — and home care makes that possible for longer. But it has limits, especially for complex or 24/7 care needs.
- The right choice depends on safety, medical needs, and carer capacity — not just preference. Use the decision framework below to assess your situation.
- Plan ahead. Having a residential facility shortlisted means you’re not making rushed decisions from a hospital bed.
Home care explained
Home care provides government-subsidised support that allows older Australians to continue living in their own home. Since 1 November 2025, new entrants are funded under Support at Home, which replaced Home Care Packages and the Commonwealth Home Support Programme. Funding is organised into 8 classifications based on assessed need.
Services available through home care include:
- Personal care — help with showering, dressing, grooming, and toileting.
- Nursing care — wound management, medication administration, health monitoring.
- Meals and nutrition — meal preparation, delivery services, dietary support.
- Transport — to medical appointments, social activities, shopping.
- Home modifications — grab rails, ramps, bathroom modifications for safety.
- Social support — companionship, community access, group activities.
- Allied health — physiotherapy, occupational therapy, podiatry, speech pathology.
Funding range: Government subsidies under Support at Home range from approximately $11,010 to $80,137 per year across the 8 classifications, depending on assessed need. Many people also supplement their budget with private funds to access additional hours or services.
Home care works best when the person has a safe, suitable home environment, at least some support network (family, friends, neighbours), and care needs that can be met through scheduled visits rather than round-the-clock supervision.
Already have a Home Care Package?
If you were approved for and receiving a Home Care Package (HCP) on or before 12 September 2024, you transitioned automatically onto Support at Home and keep your existing “no worse off” fee arrangements, including the lower lifetime contribution cap. Anyone assessed from 1 November 2025 onward is assessed directly into a Support at Home classification.
Residential care explained
Residential aged care (also called a nursing home or aged care home) provides 24/7 care in a dedicated facility. It includes:
- Accommodation — a private or shared room with ensuite facilities.
- All meals and snacks — breakfast, lunch, dinner, and between-meal options.
- 24-hour nursing and personal care — including overnight supervision.
- Activities program — social, physical, creative, and cognitive activities.
- Laundry and cleaning — all domestic services included.
- Allied health — physiotherapy, occupational therapy, and other services.
Residential care is typically suited for people with:
- High or complex care needs that require 24/7 supervision.
- Advanced dementia with wandering, agitation, or safety risks.
- Medical conditions requiring frequent nursing intervention.
- A situation where the primary carer can no longer manage (burnout, health issues, distance).
- Social isolation that home care alone cannot address.
The decision framework
This table helps you assess which option is more suitable based on your specific circumstances. Be honest — the goal is safe, appropriate care, not proving that one option can work when it can’t.
| Factor | Home care may work if… | Residential care may be needed if… |
|---|---|---|
| Safety | Low falls risk, home can be modified, no wandering | Frequent falls, wandering, unable to call for help |
| Medical needs | Stable conditions, manageable medication, scheduled nursing | Complex medication, wound care, frequent hospitalisations |
| Cognitive function | Mild cognitive impairment, can follow routines with prompting | Moderate-severe dementia, disoriented, unsafe when alone |
| Social connection | Regular visitors, community involvement, not isolated | Severely isolated, no local support network, withdrawn |
| Carer availability | Reliable carer(s) available for gaps between visits | No carer available, carer is burnt out or unwell |
| Home suitability | Single level or manageable stairs, accessible bathroom | Multi-level with stairs, narrow doorways, unsafe bathroom |
| Overnight needs | Can be alone safely overnight, or has a live-in carer | Needs assistance overnight (toileting, repositioning, monitoring) |
Home care may work if…
- Safety
- Low falls risk, home can be modified, no wandering
- Medical needs
- Stable conditions, manageable medication, scheduled nursing
- Cognitive function
- Mild cognitive impairment, can follow routines with prompting
- Social connection
- Regular visitors, community involvement, not isolated
- Carer availability
- Reliable carer(s) available for gaps between visits
- Home suitability
- Single level or manageable stairs, accessible bathroom
- Overnight needs
- Can be alone safely overnight, or has a live-in carer
Residential care may be needed if…
- Safety
- Frequent falls, wandering, unable to call for help
- Medical needs
- Complex medication, wound care, frequent hospitalisations
- Cognitive function
- Moderate-severe dementia, disoriented, unsafe when alone
- Social connection
- Severely isolated, no local support network, withdrawn
- Carer availability
- No carer available, carer is burnt out or unwell
- Home suitability
- Multi-level with stairs, narrow doorways, unsafe bathroom
- Overnight needs
- Needs assistance overnight (toileting, repositioning, monitoring)
The hardest part: Many families try to make home care work longer than it safely should because no one wants to “put someone in a home.” But delaying residential care when it’s needed can lead to preventable falls, hospital admissions, and carer collapse. A well-chosen residential facility can dramatically improve quality of life for both the resident and the family.
Cost comparison
Cost is a significant factor, but the comparison isn’t as straightforward as it first appears:
| Cost component | Home care | Residential care |
|---|---|---|
| Basic contribution | $0/day for full pensioners (Support at Home has no flat basic daily fee — contributions are set by pension status and service type) | Basic daily fee ~$66.80/day ($24,398.70/yr), paid by everyone |
| Income/means-tested fee | Varies by income and pension status | Varies by income & assets |
| Accommodation | Your existing home costs (mortgage, rates, maintenance) | RAD ($200k–$700k+) or DAP ($40–$130+/day) |
| Top-up services | Private care hours ($40–$70/hr) | Additional services ($5–$30/day) |
| Hidden costs | Home maintenance, utilities, food, transport | All included in the facility |
Home care
- Basic contribution
- $0/day for full pensioners (Support at Home has no flat basic daily fee — contributions are set by pension status and service type)
- Income/means-tested fee
- Varies by income and pension status
- Accommodation
- Your existing home costs (mortgage, rates, maintenance)
- Top-up services
- Private care hours ($40–$70/hr)
- Hidden costs
- Home maintenance, utilities, food, transport
Residential care
- Basic contribution
- Basic daily fee ~$66.80/day ($24,398.70/yr), paid by everyone
- Income/means-tested fee
- Varies by income & assets
- Accommodation
- RAD ($200k–$700k+) or DAP ($40–$130+/day)
- Top-up services
- Additional services ($5–$30/day)
- Hidden costs
- All included in the facility
Important: Home care can become more expensive than residential care when needs are very high. A person needing 6+ hours of daily support at home may spend $80,000–$120,000/year including private top-ups and household costs, while residential care for the same person might cost $50,000–$80,000/year plus accommodation.
Use our cost calculator to model actual residential care costs based on your financial situation. For home care costs, contact My Aged Care to understand your assessed subsidy level.
The transition moment
For many families, the move from home care to residential care isn’t planned — it’s triggered by a crisis. Common triggers include:
- A fall — especially one resulting in a fracture or hospital admission. Recovery in a residential facility is often safer than at home.
- Hospital admission — the hospital social worker may recommend residential care if returning home isn’t safe.
- Carer burnout — the primary carer becomes physically or emotionally unable to continue. This is more common than families expect.
- Rapid cognitive decline — a sudden worsening of dementia symptoms that makes the home environment unsafe.
- Nighttime incidents — repeated falls, wandering, or confusion at night that home care visits can’t cover.
Plan before you need to. Having a residential facility shortlisted, fees understood, and financial arrangements in place means you’re not making life-changing decisions under pressure from a hospital bed. Visit facilities, run the cost calculator, and have the family conversation before a crisis forces it.
Hybrid approaches
It’s not always a binary choice. Several hybrid options bridge the gap between full home care and permanent residential placement:
- Respite care — short-term stays in a residential facility (up to 63 government-subsidised days per year). Useful when the carer needs a break, or as a trial before committing to permanent placement.
- Transition care — a time-limited program (up to 12 weeks) after a hospital stay, delivered at home or in a facility. Helps with recovery and assessment of ongoing needs before a permanent care decision.
- Commonwealth Home Support Programme (CHSP) — entry-level home support (cleaning, meals, transport, social activities) that can supplement a higher-level package or bridge the wait for one.
- Home care + regular respite — continuing home care as the primary arrangement but using scheduled respite stays to give the carer regular recovery time. This combination can extend home care viability by months or years.
Next step: Contact My Aged Care on 1800 200 422 to discuss your options, or use our provider search to find both home care and residential care providers in your area.