Navigating the Australian care system can be confusing, especially when it comes to understanding the difference between aged care and nursing homes. Many families struggle to choose the right option for their loved ones.
At Nursed, we often hear questions about these two types of care. This guide will clarify the key distinctions, helping you make an informed decision for your family’s unique needs.
What Is Aged Care in Australia?
Overview of the Australian Aged Care System
Aged care in Australia provides comprehensive support for older Australians who require assistance with daily living or health care. The Australian Government’s My Aged Care program serves as the primary gateway for accessing these essential services. For older Australians in need of more complex aged care services, a Home Care Package can offer coordinated and affordable care services in your own home.
Types of Aged Care Services
Australia offers a diverse range of aged care services to meet various needs:
- Home Care Services: These allow older Australians to stay in their own homes while receiving support. Services include assistance with household tasks, personal care, and nursing services.
- Residential Aged Care: Often called nursing homes, these facilities provide 24/7 care for those unable to live independently. They offer accommodation, personal care, and medical support.
- Short-term Care Options: These include respite care (temporary relief for carers) and transition care (recovery support after hospital stays).
NDIS and Aged Care Intersection
The National Disability Insurance Scheme (NDIS) intersects with aged care in significant ways. While the NDIS primarily supports people under 65 with disabilities, some older Australians may qualify for both NDIS and aged care services. Nursed specialises in navigating this intersection, providing tailored support that aligns with both NDIS goals and aged care needs for eligible individuals under 65.
Accessing Aged Care Services
To access government-subsidised aged care services, older Australians must undergo an assessment. This process determines the level of care needed and the services an individual qualifies for.
It’s important to note that wait times for services can vary significantly. According to the My Aged Care website, the estimated wait times for Home Care Packages are: Level 1, 6 – 9 months; Level 2, 6 – 9 months; Level 3, 9 – 12 months; Level 4, 12 – 15 months. This underscores the importance of early planning and support-seeking.

As we move forward to explore nursing homes in more detail, it’s clear that aged care in Australia offers a wide spectrum of services. The next section will focus on the specific purpose and facilities of nursing homes, providing a clearer picture of how they differ from other aged care options.
What Are Nursing Homes in Australia?
Definition and Purpose
Nursing homes, also known as residential aged care facilities in Australia, provide round-the-clock care for older Australians who can no longer live independently. These facilities cater to those with complex health needs or severe cognitive impairments, offering a higher level of care than other aged care options.
Comprehensive Care Services
Australian nursing homes offer a wide range of services to support residents’ physical, emotional, and social wellbeing. These typically include:
- 24/7 nursing care
- Assistance with daily living activities (bathing, dressing, eating)
- Medication management
- Specialised dementia care
- Physiotherapy and occupational therapy
- Nutritious meals and special diets
- Social and recreational activities
As of June 2020, 179,000 Australians were permanent residents in aged care homes, and another 5,800 used these facilities for respite care.

Admission Criteria and Process
To gain admission to a nursing home in Australia, an individual must undergo an Aged Care Assessment Team (ACAT) evaluation. This assessment determines the level of care required and whether a nursing home is the most appropriate option.
Key factors considered during the assessment include:
- Physical health and mobility
- Cognitive function
- Ability to perform daily living activities
- Current living situation and support network
- Safety concerns
The ACAT assessment process can take weeks to months, however it can be fast-tracked if you or your loved one are in a crisis or are at risk of harm.
Financial Considerations
The cost of nursing home care in Australia can be substantial. As of 2023, the basic daily fee is $56.87 per day, with additional means-tested care fees depending on the resident’s income and assets. The Aged Care Financing Authority reports that the average annual cost for a nursing home resident is approximately $65,000.
Understanding these financial aspects can be challenging for many families. It’s important to explore all available options and find the most suitable care solution, whether that’s a nursing home or alternative care arrangements (such as those provided by Nursed for eligible individuals under 65).
As we move forward to explore the key differences between aged care and nursing homes, it’s clear that nursing homes play a vital role in Australia’s aged care system. The next section will highlight how these facilities differ from other aged care options, helping you make an informed decision for your loved ones.
How Aged Care and Nursing Homes Differ
Level of Care and Medical Support
The Australian aged care system offers various care options. Aged care services provide subsidised care and support services for older Australians who can no longer live independently without assistance. These services can occur in-home or in residential facilities.
Nursing homes offer the highest level of care within the aged care system. They cater to individuals with complex health needs or severe cognitive impairments who need constant supervision and medical attention. Advanced dementia involves severe cognitive decline and full-time care needs, with palliative care focusing on comfort for residents with dementia.
Living Arrangements and Independence
Aged care services often focus on maintaining independence. They allow individuals to stay in their own homes or communities. Home care packages provide tailored support for daily living tasks, personal care, and health management. These services can increase support gradually as needs change over time.
Nursing homes provide a more structured living environment with 24/7 care. While this means less independence, it offers a safer setting for those who can no longer manage on their own. The Australian Aged Care Quality and Safety Commission sets strict standards for nursing homes to ensure residents receive appropriate care while maintaining dignity and quality of life.
Cost Structures and Government Subsidies
The cost of aged care services varies widely depending on the type and level of care required. Home care packages receive government subsidies, with fees determined by income and assets. As of 2023, the maximum basic daily fee for a home care package is $11.99.
Nursing home costs are generally higher due to the intensive care provided. The basic daily fee for nursing home residents is currently $56.87, with additional means-tested care fees applying based on income and assets. However, the government provides significant subsidies to make nursing home care more accessible.

Flexibility and Personalisation of Care
Aged care services offer more flexibility in terms of care options and schedules. This allows for a more personalised approach, tailoring support to individual preferences and lifestyles. Nursed specialises in providing customised care plans for eligible individuals under 65, ensuring that support aligns with personal goals and NDIS requirements.
Nursing homes, while less flexible in daily routines, still strive to provide personalised care. Many facilities now offer specialised programs for residents with specific needs, such as dementia care units or culturally specific care options. The Aged Care Quality Standards, introduced in 2019, emphasise the importance of person-centred care in all aged care settings, including nursing homes.
Final Thoughts
The difference between aged care and nursing homes lies in their care levels, living arrangements, and costs. Aged care services provide support for older Australians to maintain independence, often in their own homes. Nursing homes offer round-the-clock care for those with complex health needs or severe cognitive impairments in a structured environment.
Costs and government subsidies vary between these options, with nursing homes typically more expensive due to intensive care provision. The choice between aged care and nursing homes depends on individual needs, preferences, and circumstances. Factors to consider include required care level, desired living arrangements, financial considerations, and potential future care needs.
For Australians under 65 with disabilities who need specialized care, Nursed offers tailored support that aligns with NDIS goals and aged care needs. Nursed provides personalized care plans, home modifications, and support services to help eligible individuals maintain independence and quality of life in their own homes and communities.