Residential Care Types

The Different Types of Commonwealth-Regulated Residential Care in Australia

As Australians live longer, the need for quality aged care has never been greater. When living independently at home becomes too challenging — even with help — Commonwealth-regulated residential care provides a safe and supportive environment for older people to receive the care they need, around the clock.

But not all residential care is the same. In Australia, several types of residential care exist to meet a wide range of needs, from short-term respite care to secure dementia support and end-of-life palliative care. Understanding these options can help older people and their families make informed choices and plan ahead with confidence.

This guide explains the main types of Commonwealth-regulated residential care available, who they’re for, how they work, and what to expect.

What is Residential Aged Care?

Residential aged care provides accommodation, meals, personal care, and access to nursing and allied health services 24 hours a day. It is designed for people who can no longer live safely or independently at home. Each resident receives an individual care plan based on their medical and personal needs.

In Australia, residential aged care services must be approved by the Australian Government and meet strict quality standards under the Aged Care Quality Standards. They must also hold an approved provider status and are regularly audited by the Aged Care Quality and Safety Commission.

Who Regulates Residential Care?

The Australian Government funds residential aged care through subsidies paid directly to approved providers. These subsidies help cover the cost of care, but residents may still be asked to contribute based on their income and assets.

The system is designed to balance the need for safety and quality with the right of older Australians to choose where and how they receive care. Families, carers, and older people themselves play an important role in deciding which type of care is most appropriate.

The Main Types of Residential Aged Care

Let’s break down the key categories you might hear about when exploring residential aged care options:

• Low Care (see Note *)
• Mainstream High Care
• Dementia-Specific Care
• Respite Care
• Palliative Care
• Short-Term Restorative Care (STRC)

Low Care (Hostel-Style Care)

Low Care used to be known as “hostel care”. It’s designed for people who need some help with daily living but do not have high medical needs. Residents typically need assistance with activities like showering, dressing, cleaning, or meals, but do not require constant nursing care.

Low Care facilities often feel more like independent living with support. Many provide private or semi-private rooms with shared dining and recreational spaces. Residents are encouraged to stay as independent as possible, with help always at hand if needed.

Note * - Today, the Aged Care Funding Instrument (ACFI) no longer formally distinguishes between low care and high care — instead, care levels are assessed individually and can change over time. However, many people still use “low care” as a general term to describe less complex residential care needs.

High Care (Nursing Home Care)

High Care is for people who require 24-hour nursing care or supervision because of chronic illness, disability, severe frailty, or other complex needs. High care residents often need help with mobility, feeding, continence management, and medical treatments.

High Care homes have trained nursing staff available at all times, as well as allied health professionals like physiotherapists and dietitians. Rooms are usually single or shared, with specialised equipment (such as hoists or pressure-relieving mattresses) provided where necessary.

People often transition from low care to high care as their needs increase — the flexibility of the funding system means they do not have to move facilities if their current home can provide a higher level of care.

Dementia-Specific Care

Many older Australians living with dementia can no longer be safely cared for at home or in general residential care. Dementia-Specific Care Units within residential aged care homes provide a secure and supportive environment designed to minimise stress and confusion for people with cognitive impairment.

Dementia care areas often include:

• Secure doors and outdoor areas to prevent wandering.
• Specially trained staff who understand the challenges of dementia.
• Calm, structured routines that reduce anxiety.
• Memory-support activities to help maintain skills and social connection.

Families often find peace of mind knowing their loved one is in a secure environment with staff trained to respond sensitively to behavioural changes.

Respite Care

Respite Care provides a short-term break for carers while giving the older person safe, comfortable accommodation with all their care needs met. It is commonly used by families who need temporary support due to illness, travel, or to prevent carer burnout.

Respite can be planned in advance — for example, a two-week break every few months — or provided in emergencies. Residents receive the same services as permanent residents: meals, personal care, nursing, social activities, and medical support as needed.

In Australia, up to 63 days of subsidised residential respite care is generally available per financial year, with extensions possible in some circumstances. Respite care can also help an older person trial life in residential care before making a permanent move.

Palliative and End-of-Life Care

For residents with terminal illnesses or who are approaching the end of life, palliative care is an essential part of residential aged care. It focuses on comfort, dignity, and quality of life, managing pain and symptoms while supporting the emotional and spiritual needs of both the resident and their loved ones.

Residential aged care staff work closely with specialist palliative care teams, GPs, and families to ensure that residents receive compassionate, person-centred care in their final stages of life.

Families can often stay overnight, and visiting hours are flexible to ensure loved ones can be close when it matters most.

Short-Term Restorative Care (STRC)

While technically not long-term residential care, Short-Term Restorative Care is worth mentioning. It’s designed for people who may be experiencing a decline in function but could regain independence with targeted support. STRC offers up to eight weeks of goal-oriented care and therapy to help people return home rather than move into permanent residential care prematurely.

It’s delivered either in the person’s home or in a residential setting, depending on their needs.

How Care Levels Are Assessed

The level of residential care you qualify for is determined by an assessment from an Aged Care Assessment Team (ACAT) or Aged Care Assessment Service (ACAS) in Victoria. They look at your medical conditions, mobility, daily living needs, and social support network to decide what level of care you need and approve you for appropriate services.

This ensures government funding is directed to those who genuinely need higher levels of care and support.

Paying for Residential Care

Regardless of the type of care, the Australian Government subsidises residential aged care costs, but residents may still be required to pay:

• Basic Daily Fee: Covers meals, laundry, cleaning, and general living costs. It’s set at 85% of the full single Age Pension.
• Means-Tested Care Fee: An extra contribution for those who can afford it, based on an income and assets assessment by Services Australia.
• Accommodation Payments: These may be required depending on your means. They can be paid as a refundable lump sum (RAD), daily fee (DAP), or a combination.

Additional fees may apply for extra or optional services, such as premium rooms or lifestyle packages. It’s important to understand the costs and compare options before committing to a facility.

Quality Standards and Your Rights

All types of Commonwealth-regulated residential care must meet the Aged Care Quality Standards, which cover:

• Dignity and choice.
• Ongoing assessment and planning.
• Personal and clinical care.
• Services and supports for daily living.
• Feedback and complaints processes.
• Human resources and governance.

Residents have the right to feel safe, be treated with respect, and have their cultural, spiritual, and personal preferences recognised. If you have concerns about care, you can raise them with your provider or the Aged Care Quality and Safety Commission.

How to Choose the Right Type of Residential Care

Choosing the right residential care is a big decision. Here are some steps to guide you:

• Start with an ACAT/ACAS assessment to confirm what type of care you’re eligible for.
• Consider the level of support you need now and what you may need in the future.
• Visit multiple facilities to compare services, staff, atmosphere, and fees.
• Ask questions about dementia care, respite options, and whether they provide palliative care if needed.
• Review contracts carefully and get professional advice if needed.

Final Thoughts

Australia’s residential aged care system offers different types of care to match every level of need — from short-term respite to secure dementia units and specialised palliative care. Knowing what’s available and how each option works can make a huge difference when planning for yourself or supporting a loved one.

At OMS, we’re here to help you understand your rights, compare your options, and make confident, informed decisions about aged care. If you’d like tailored guidance on fees, contracts, or choosing a provider, reach out to our friendly team or explore more articles in our Residential Care section.

Good information is the first step towards good care — and you deserve nothing less.