Funding for residential aged care

Residential aged care homes have three main components of service delivery – care, everyday living, and accommodation. Each component is funded separately through different arrangements. These arrangements reflect the relevant cost drivers and the level of Australian Government contribution.

The Australian Government supports residents in residential aged care homes by paying subsidies and supplements to registered providers. These are paid on behalf of each person approved for a government-subsidised permanent and short-term (respite) aged care place.

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