Distribution of aged care consumers in Australia FY 2021, by service type
Like most OECD countries, Australia’s population is ageing and will require an increasingly robust aged care sector to support the growing number of people aged 65 and over. With this said, the vast majority of aged care consumers require only minimal support through basic home support services. In financial year 2021, home support clients accounted for 62 percent of over 1.5 million aged care consumers. This was more than three times the number of people being cared for in residential aged care facilities. In total, the Australian government contributed 23.6 billion Australian dollars to aged care in financial year 2021.
Three levels of support
The Australian aged care system is divided into three fundamental levels of care based on the intensity of care required. Home support is the most basic care type and includes domestic assistance, meals on wheels, community transport, and social support. Home care packages also provide care in the home through a coordinated service package. Residential care is the highest care level and by far the most expensive to fund, with the Australian government paying on average 49,712 Australian dollars per person in care in 2017. Naturally, as the average age of the population increases, it is expected that the cost of aged care will continue to rise as well.
Nursing homes
Aged care homes in Australia are run by a combination of for-profit, not-for-profit, state, and community providers. For-profit providers represent the largest share of the residential care market, holding over 40 percent of approved residential care places. This was more than the total share of homes run by religious and charitable organizations.
Three levels of support
The Australian aged care system is divided into three fundamental levels of care based on the intensity of care required. Home support is the most basic care type and includes domestic assistance, meals on wheels, community transport, and social support. Home care packages also provide care in the home through a coordinated service package. Residential care is the highest care level and by far the most expensive to fund, with the Australian government paying on average 49,712 Australian dollars per person in care in 2017. Naturally, as the average age of the population increases, it is expected that the cost of aged care will continue to rise as well.
Nursing homes
Aged care homes in Australia are run by a combination of for-profit, not-for-profit, state, and community providers. For-profit providers represent the largest share of the residential care market, holding over 40 percent of approved residential care places. This was more than the total share of homes run by religious and charitable organizations.
