What types of residential aged care exist?

Standard residential care, extra service facilities, dementia-specific units (memory support units), and respite/short-term stays are all available.

How do I find aged care facilities near me?

Use the My Aged Care website, Carevo provider directory, or call My Aged Care on 1800 200 422 to find facilities in your area.

Nursing Home vs Aged Care Facility: Differences

If you have been searching for care options for an older parent or loved one, you have probably come across both “nursing home” and “aged care facility” and wondered whether they mean different things. You are not alone. This is one of the most common questions Australian families ask when they start exploring residential care.

The short answer is that they refer to the same thing. But the full story involves decades of policy changes, evolving terminology, and real differences in the types of care available within residential settings. Understanding these details can help you make a more confident decision when the time comes.

Key points

“Nursing home” and “aged care facility” mean the same thing in Australia
The official term changed to “residential aged care” in 1997
Before 1997, “nursing homes” provided high-level care while “hostels” provided low-level care
Today, all residential aged care facilities can deliver care across multiple levels
Finding the right facility involves an ACAT/ACAS assessment, comparing options, and understanding fees

Why Do We Have Two Names for the Same Thing?

The confusion between “nursing home” and “aged care facility” is not the result of careless language. It reflects a genuine shift in how Australia’s aged care system has been structured over the past 30 years.

Before 1997, Australia had two distinct types of residential care:

Nursing homes provided intensive, high-level care for people who needed round-the-clock medical and personal support. Registered nurses were on-site at all times, and residents typically had significant health conditions or physical limitations.
Hostels provided low-level care for people who were mostly independent but needed some help with daily tasks like meals, cleaning, or medication management. Hostels generally had a more relaxed, home-like environment.

This two-tier system created real problems. People who entered a hostel sometimes found that their needs increased over time, forcing them to move to a nursing home. The disruption of leaving a familiar environment was difficult for residents and families alike.

The 1997 Aged Care Act: One System, One Name

The Aged Care Act 1997 merged nursing homes and hostels into a single residential aged care system. Under this legislation, every facility became a “residential aged care facility” capable of providing care across all levels. The idea was simple: a person could move into a facility and stay there as their needs changed, without needing to relocate.

The old terms did not disappear overnight. Many Australians, especially those who grew up with the pre-1997 system, still say “nursing home” when they mean residential aged care. Government websites, healthcare professionals, and the media now consistently use “residential aged care” or “aged care facility,” but the older language persists in everyday conversation.

What About “Aged Care Home”?

You might also see the term “aged care home” used interchangeably. This is another informal term that refers to the same type of facility. It is not an official classification, but it has gained popularity because it sounds warmer and more personal than “facility.”

Some providers also use branding like “care residence,” “care community,” or “living centre.” These are marketing terms rather than regulatory categories. Regardless of what a facility calls itself, it must meet the same standards set by the Aged Care Quality and Safety Commission.

Old Terms vs New Terms: A Quick Reference

Understanding how the language has changed helps you navigate conversations with providers, government agencies, and medical professionals.

Old Term (Pre-1997)	Current Term	What It Means
Nursing home	Residential aged care facility	A facility providing 24/7 personal and medical care
Hostel	Residential aged care facility	Previously low-care only; now merged into the single system
Nursing home bed	Residential aged care place	A funded place within a facility
High care	Not officially used (replaced by AN-ACC funding model)	Complex care needs requiring extensive clinical support
Low care	Not officially used (replaced by AN-ACC funding model)	Basic support needs like meals, cleaning, and social activities
Accommodation bond	Refundable Accommodation Deposit (RAD)	Lump sum payment for your room
Accommodation charge	Daily Accommodation Payment (DAP)	Daily rental payment for your room

If you hear any of these older terms from family members or friends, they are almost certainly referring to the modern residential aged care system.

What Does a Residential Aged Care Facility Actually Provide?

Residential aged care facilities provide permanent accommodation and support for older Australians who can no longer live safely at home, even with help. The range of services available is broader than many families expect.

Personal Care

This is the day-to-day assistance that most people associate with aged care. It includes:

Help with showering, bathing, and grooming
Assistance getting dressed
Support with eating and drinking
Mobility assistance, including help with walking frames, wheelchairs, and transfers
Continence management
Oral and dental hygiene support

Personal care is available around the clock, and staff adjust the level of support based on each resident’s individual care plan.

Clinical and Medical Care

Residential aged care facilities are not hospitals, but they do provide a significant level of clinical care:

Registered nurses oversee medication management, wound care, and health monitoring
General practitioners visit regularly (or are on call) to manage ongoing medical conditions
Allied health professionals such as physiotherapists, occupational therapists, speech pathologists, and podiatrists provide specialist treatments
Palliative care is available for residents nearing end of life, either on-site or in partnership with specialist palliative care teams

The introduction of the Australian National Aged Care Classification (AN-ACC) funding model in 2022 means that each resident’s care needs are independently assessed, and funding is allocated accordingly. This replaced the older ACFI system and ensures that facilities receive appropriate funding to deliver the care each resident requires.

Meals and Nutrition

Facilities provide three meals per day plus snacks, prepared by on-site kitchens or catering services. Many facilities employ dietitians to create menus that cater to residents with specific dietary needs, including:

Diabetic diets
Texture-modified meals for residents with swallowing difficulties
Culturally appropriate food options
Vegetarian, vegan, or allergy-specific meals

Quality of life is a major focus in modern residential aged care. Facilities typically offer:

Group activities such as exercise classes, music therapy, art sessions, and gardening
Outings and excursions
Religious and cultural observances
Pet therapy programs
Technology access, including tablets and video calling for staying in touch with family
One-on-one social engagement for residents who prefer quieter interaction

Accommodation and Living Spaces

Residents live in private or shared rooms, depending on the facility and the accommodation arrangement. Most modern facilities offer:

Private rooms with ensuite bathrooms
Communal dining areas and lounges
Gardens and outdoor spaces
Hairdressing salons
Small libraries or quiet rooms

Facilities vary significantly in their accommodation standards. Some offer basic, functional rooms while others provide hotel-style suites with premium furnishings. The cost reflects these differences, which is covered in detail in our guide to how much a nursing home costs in Australia.

Types of Residential Aged Care in Australia

While “nursing home” and “aged care facility” mean the same thing, there are real differences between the types of residential care available. Understanding these categories will help you find the best fit.

Standard Residential Aged Care

This is the most common type. Facilities provide personal care, clinical support, meals, and lifestyle programs for permanent residents. Most facilities accept residents with a wide range of care needs, from those who need minimal assistance to those requiring complex, around-the-clock medical support.

Extra Service Facilities

Some facilities are approved by the government to offer “extra service” status. These facilities provide a higher standard of accommodation, food, and services in exchange for an additional daily fee. Think of it as premium residential care. Extra service rooms are typically larger, better furnished, and come with additional lifestyle options such as wine with dinner or premium entertainment.

For a detailed breakdown of extra service fees and what they include, see our guide on extra services in aged care.

Dementia-Specific Units (Memory Support Units)

Many facilities include dedicated wings or units designed specifically for residents living with dementia or other cognitive conditions. These units feature:

Secure environments to prevent wandering
Specially trained staff with expertise in dementia care
Sensory gardens and calming design elements
Structured routines that reduce confusion and anxiety
Activities tailored to cognitive abilities

Not all facilities have a dedicated dementia unit. If your loved one has been diagnosed with dementia, it is worth specifically asking about memory support options when comparing facilities.

Respite Care (Short-Term Stays)

Residential respite care provides temporary stays in an aged care facility, typically for up to 63 days per financial year. It serves two main purposes:

Carer relief: Giving family carers a break from the physical and emotional demands of caring
Trial stays: Allowing an older person to experience residential care before committing to a permanent move

Respite care is available in most residential aged care facilities, but places can be limited. You will need an ACAT or ACAS assessment to access subsidised respite care.

Transition Care

Transition care is a short-term program (usually up to 12 weeks) designed for older people leaving hospital who are not yet ready to return home or make a long-term care decision. It can be delivered in a residential aged care facility or in a person’s home, and includes:

Physiotherapy and rehabilitation
Nursing support
Personal care
Social work services

Transition care is not the same as permanent residential aged care, but it often serves as a stepping stone for families who are still deciding on the best long-term option.

How Care Levels Work in Residential Aged Care

One of the biggest changes in recent years has been the shift away from the old “high care” and “low care” labels. Under the current system, care is not rigidly divided into categories. Instead, each resident is assessed individually.

The AN-ACC Funding Model

Since October 2022, residential aged care funding has been determined through the Australian National Aged Care Classification (AN-ACC) system. Here is how it works:

Independent assessment: A trained assessor from the AN-ACC Assessment Organisation visits the facility to assess each resident’s care needs
Classification: The resident is placed into one of 13 AN-ACC classes based on their functional ability, cognition, health conditions, and care requirements
Funding allocation: The government pays the facility a daily subsidy based on the resident’s classification, plus a facility-level base care tariff

This system ensures that residents with more complex needs receive higher funding, which in turn supports the facility in delivering more intensive care.

What This Means for You

From a practical standpoint, you do not need to worry about whether a facility is “high care” or “low care.” All residential aged care facilities are funded to provide care across the full spectrum of needs. When comparing facilities, focus on:

Staffing levels and qualifications: How many registered nurses are on-site at any given time? What is the staff-to-resident ratio?
Specialised care capabilities: Can the facility manage specific conditions like advanced dementia, Parkinson’s disease, or complex wound care?
Quality indicators: Check the facility’s star ratings on the My Aged Care website and any recent audit reports from the Aged Care Quality and Safety Commission

How to Find and Compare Aged Care Facilities

Finding the right residential aged care facility involves several steps. The process can feel overwhelming, but breaking it down makes it manageable.

Step 1: Get an ACAT/ACAS Assessment

Before you can access government-subsidised residential aged care, you need an assessment from an Aged Care Assessment Team (ACAT) or Aged Care Assessment Service (ACAS) in Victoria. This assessment determines your eligibility for residential care and helps identify the level of support you need.

To arrange an assessment:

Call My Aged Care on 1800 200 422
Or register online at myagedcare.gov.au

The assessment is free and usually takes place in your home or in hospital if you are an inpatient.

Step 2: Research Facilities in Your Area

Once you have been approved for residential care, start researching facilities. There are several ways to find options:

My Aged Care website: Search by location and filter by services, room types, and specialisations
Carevo directory: Browse and compare aged care facilities across Australia at carevo.com.au
Word of mouth: Ask your GP, hospital social worker, or friends and family for recommendations
Facility websites: Most facilities publish detailed information about their services, rooms, and fees online

Step 3: Visit and Compare

Visiting facilities in person is essential. No amount of online research can replace actually seeing the environment, meeting the staff, and talking to current residents and their families.

When visiting, pay attention to:

Cleanliness and maintenance: Is the facility well-kept? Do common areas look inviting?
Staff interactions: Are staff warm, patient, and attentive with residents? Do they seem rushed or stressed?
Resident engagement: Are residents participating in activities, or are they sitting alone in their rooms?
Food quality: Ask to see a sample menu or, if possible, join a mealtime
Room quality: Look at the rooms available, including the bathroom, storage space, and natural light
Outdoor areas: Are there accessible gardens or outdoor spaces?
Security: If your loved one has dementia, check the security measures in place

For a comprehensive checklist of what to look for, read our guide on how to choose a nursing home in Australia.

Step 4: Understand the Costs

Residential aged care costs can be complex. The main fees include:

Basic daily fee: A standard contribution towards daily living costs (meals, cleaning, utilities). This is set by the government and applies to all residents.
Means-tested care fee: An additional fee based on your income and assets assessment. Not everyone pays this fee.
Accommodation payment: Either a Refundable Accommodation Deposit (RAD, lump sum), a Daily Accommodation Payment (DAP, rental-style), or a combination of both. The amount depends on the facility and room type.
Extra service fees: Additional charges for premium services, if applicable.

For a full breakdown of these fees and how they are calculated, visit our nursing home cost guide.

Common Misconceptions About Nursing Homes and Aged Care Facilities

Misinformation about residential aged care is widespread. Here are some of the most common myths and the reality behind them.

”Nursing homes are just for people who are dying”

This is one of the most harmful misconceptions. While residential aged care does provide palliative and end-of-life care, most residents move in because they need more support than can be safely provided at home. Many residents live in aged care for years and enjoy an active social life within the facility.

”You lose all your independence in a nursing home”

Modern residential aged care facilities are designed to promote independence wherever possible. Residents are encouraged to make choices about their daily routines, meals, activities, and social interactions. Person-centred care plans are built around individual preferences, not institutional convenience.

”All aged care facilities are the same”

Facilities vary enormously in their culture, environment, staffing, food quality, and approach to care. A facility run by a small, community-based organisation may feel very different from one operated by a large corporate provider. Visiting multiple facilities and asking detailed questions is the best way to find the right match.

”You have to sell the family home to pay for aged care”

This is not necessarily true. The family home may be exempt from the means test if a “protected person” (such as a spouse or dependent) is still living there. Even when the home is included in the means test, there are caps on the fees you can be asked to pay. Financial advice from an accredited aged care financial adviser can help you understand your options without unnecessary stress.

”Once you are in a nursing home, you cannot leave”

Residents of aged care facilities are not detained. You can leave a facility at any time, whether for a day trip, a holiday, or permanently. If you are unhappy with your care, you have the right to transfer to a different facility. The Aged Care Quality and Safety Commission can also help resolve complaints.

”Home care is always better than residential care”

Home care is a wonderful option for many older Australians, and it is the preference of most people. However, there are situations where residential care is the safer and more appropriate choice. When a person’s needs exceed what can be provided at home, when they are at risk of falls or accidents, or when a family carer’s own health is suffering, residential care can provide a level of safety, social connection, and clinical support that is difficult to replicate at home.

For information on home-based alternatives, visit our aged care services page.

How Residential Aged Care Compares to Other Options

Understanding where residential aged care fits within the broader system helps you make an informed decision.

Residential Aged Care vs Support at Home

Support at Home (formerly Home Care Packages) provides government-funded support for older people to remain living at home. It covers services like personal care, nursing, allied health, cleaning, and meal preparation. Multiple levels of funding are available, with higher levels providing more support.

Home care is ideal when a person’s needs can be safely met in their own home. Residential aged care becomes the better option when:

Care needs are too complex or intensive for home-based delivery
The home environment is unsafe (falls risk, isolation, poor accessibility)
A family carer is no longer able to provide adequate support
The person is socially isolated and would benefit from a community environment

Residential Aged Care vs Retirement Villages

Retirement villages are independent living communities for older Australians. They are not aged care facilities and do not provide personal or clinical care. Residents in retirement villages live in their own units or apartments and are responsible for their own daily needs. Some retirement villages have partnerships with aged care providers, but they are fundamentally different from residential aged care.

Residential Aged Care vs Assisted Living

“Assisted living” is not a formal category in Australia’s aged care system, though the term is sometimes used informally. It generally refers to supported accommodation that sits between fully independent living and full residential aged care. In practice, what Australians call “assisted living” is usually delivered through home care packages or through retirement village services.

Frequently Asked Questions

Is a nursing home the same as an aged care facility?

Yes. In Australia, “nursing home” and “aged care facility” (or “residential aged care”) refer to the same thing. The official term is residential aged care, but “nursing home” remains widely used in everyday language. Both terms describe a facility that provides 24/7 accommodation, personal care, and clinical support for older Australians.

When did they stop calling them nursing homes?

The term officially changed in 1997 when the Aged Care Act merged the old nursing home and hostel systems into a single residential aged care framework. The government, industry bodies, and most providers now use “residential aged care,” though “nursing home” is still understood and accepted in informal conversation.

What is the difference between a hostel and a nursing home?

Before 1997, hostels provided low-level care (help with meals, cleaning, and daily tasks) while nursing homes provided high-level care (24/7 medical and personal support). Since the 1997 reforms, both types of care are delivered within the same residential aged care facilities, and the hostel/nursing home distinction no longer applies.

How much does a nursing home cost in Australia?

Costs vary depending on the facility, room type, and your financial circumstances. The basic daily fee is set by the government at approximately $66.80 per day. Additional fees may include a means-tested care fee and an accommodation payment. For a detailed guide, see how much does a nursing home cost in Australia.

Can I try residential aged care before committing?

Yes. Residential respite care allows you to stay in a facility for up to 63 days per financial year. This is an excellent way to experience the environment, meet staff, and decide whether a permanent move is right for you. An ACAT/ACAS assessment is required.

What rights do residents have in aged care facilities?

All residents have rights protected under the Charter of Aged Care Rights. These include the right to safe and high-quality care, the right to be treated with dignity and respect, the right to have your identity and culture valued, and the right to make complaints without fear of reprisal. The Aged Care Quality and Safety Commission oversees compliance with these rights.

How do I complain about an aged care facility?

If you have concerns about the quality of care in a residential aged care facility, you can:

Raise the issue directly with the facility’s management
Contact the Aged Care Quality and Safety Commission on 1800 951 822
Speak to an aged care advocate through the Older Persons Advocacy Network (OPAN) on 1800 700 600

Choosing residential aged care is one of the biggest decisions a family can make. Whether you call it a nursing home, an aged care facility, or residential aged care, what matters most is finding a place where your loved one will receive safe, compassionate, and high-quality care.

Carevo helps Australian families navigate the aged care system with confidence. Our platform connects you with residential aged care facilities across the country, making it easier to compare options, understand fees, and find the right fit.

Call 1800 953 253 to find the right residential care provider through Carevo, or explore residential aged care options on carevo.com.au to start your search today.