Extra fee arrangement for aged care residents
The Department of Health, Disability, and Ageing has announced new fee arrangements for aged care residents wanting higher quality services.
Scholarships announced
The Federal Government is investing $21.5 million in scholarships to help aged care workers and nurses progress in their careers.
The Aged Care Nursing Scholarships Program will support nurses and aged care workers to complete education and training, making sure they have the skills to deliver high quality aged care that prioritises the complex needs of older people.
Over 1,000 scholarships are available, with guaranteed places for Aboriginal and Torres Strait Islander aged care workers and nurses.
The Australian College of Nurse Practitioners will deliver the Aged Care Nursing Scholarships Program until June 2027. Details are here.
Permanent and respite residential aged care residents who pay extra for higher quality services that are in addition to the usual services will transition to a new fee arrangement from 31 October this year.
Currently, residents pay for additional services through additional service fees and extra service fees arrangements.
These will be replaced by the new optional higher everyday living fee (HELF) from 1 November.
Existing Extra Service Fee and Additional Service Fee arrangements can continue until 31 October 2026 for people who agreed to these fees prior to 1 November 2025. Providers can increase fees in line with existing contracts.
By 31 October 2026 residents have the choice to:
Continue to receive additional or extra services under the new HELF
Stop receiving additional or extra services.
Paying: how HELF will work
Residential aged care homes can determine the cost of higher everyday living services, and don't have to seek approval from the government or the Independent Health and Aged Care Pricing Authority.
Higher everyday living services can be provided as a bundle or package. However, services in a bundle or package must also be available separately, and a resident can’t be worse off than if they separately paid for the services that they can use.
An individual may agree to pay a HELF regardless of the room they are in. Current protections that restrict when an individual may be asked to move rooms remain in place.
Join the Council of Elders
The Department of Health, Disability, and Ageing is seeking applicants for membership of the Council of Elders from January 2026.
The Council of Elders is a group of older people from across Australia with diverse backgrounds and lived experience of aged care. Members are appointed by government as a voice for older people, by older people.
If you are interested, details are here.
What you should know about the role of providers
Aged care residents should know that from 1 November 2025 providers can’t enter into new additional or extra service agreements or ask residents to pay a higher everyday living fee at the same time as additional or extra service fees.
Also, HELF can’t be charged for accommodation costs, which are to be included in accommodation pricing.
Providers are advised they should have a conversation with each extra and additional service fee resident prior to 1 November 2026.
Providers must be able to show that the services offered as part of the HELF are in addition to, or of a higher level than, those that are required to be provided.
People can’t be asked to pay for a service that they can’t or won’t use. This does not prevent the inclusion of a service a person can’t use being in a bundle, but they must still not be worse off than if they paid only for the services they can use.
Providers must:
Not agree on higher everyday living services before a person has entered care
Outline the cost of each higher service to be delivered in a person’s higher everyday living agreement, the standards and frequency at which they will be delivered and how they will be charged
Comply with the 28-day cooling off period for higher everyday living agreements
Review a person's higher everyday living agreement with them at least once a year to ensure they still want the services and are able to use them
Only increase the fees and charges a person has agreed to by the Consumer Price Index (CPI).
Providers must demonstrate that the services offered as part of the HELF are not those they are already obligated to provide and must give residents an itemised account of the services and costs.
HELF consumer protections
Higher everyday living services cannot be agreed before a person has entered care or be a condition of entry. A HELF agreement must be separate from the service agreement and accommodation agreement.
A HELF agreement must outline the cost of each higher service to be delivered, the standards and frequency at which they will be delivered, and how they will be charged.
People cannot be asked to pay for a service that they cannot or will not use. This does not prevent a bundle from including a service a person cannot use, but they must not be worse off than if they paid only for the services they can use.
There is a 28-day cooling off period after signing a HELF agreement. This means someone can cancel or vary their higher everyday living services within this period without a cancellation fee. The provider needs to be notified of this, but there is no minimum notice period.
After the initial 28-day cooling off period:
If the person chooses not to use the service, or is no longer able to use the service, it can be cancelled with 28 days’ notice.
If the person initiates cancellation, the provider can pass on expenses incurred beyond the 28-day period if they are unavoidable (for example, subscription fees) for up to 90 days. Providers must be able to demonstrate this and cannot pass on an amount greater than they have incurred.
If the provider can no longer deliver the service, it must be cancelled immediately.
The provider must acknowledge receipt of the individual’s request to vary or cancel a service, including the date of effect.
The HELF agreement must be reviewed at least once a year to ensure the person still wants the services and is able to use them.
Once higher everyday living services and charges have been agreed they can only be increased by indexation.
