Government bars providers charging ‘unreasonable’ fees

Aged care providers will be barred from charging older Australians extra for services they are already receiving under a federal government crackdown on what it describes as ‘unreasonable’ fee practice.

The move is in response to concerns that some residential aged care providers were asking existing residents to pay a Higher Everyday Living Fee (HELF) for services that had previously been provided at no additional cost.

Amendments to the Aged Care Rules 2025 will prevent providers from imposing the fees on services residents were already receiving before 1 November 2025, when the new aged care framework took effect.

Aged Care and Seniors Minister Sam Rae said the government was responding to concerns raised by older Australians and their families.

“We’ve always said it was unreasonable for providers to start charging older Australians for services they previously received at no cost. We’ve listened to older people and we are acting now to make the rules clear and strengthen protections for older Australians,” he said.

The government said guidance had always made clear that charging a HELF in these circumstances was undue, but legislative changes were needed after some providers allegedly continued the practice.

Council on the Ageing (COTA) Australia chief Patricia Sparrow said the changes addressed a concern that older people had been raising for some time.

“It’s good to see government listen to older people’s experiences and move to ensure providers can’t continue this unethical practice,” she said.

“Older people need to know what they are already entitled to receive before they can make a genuine choice about whether an optional extra is worth paying for.”

However, Ms Sparrow highlighted that there is further work to be done to ensure older Australians are appropriately and adequately informed of their rights as consumers.

“Getting consumer protections right across the whole system, for people living at home and those living in residential care, is critical,” she said.

“Older people need to know where their money is going and be confident they’re getting the quality of care they deserve. That’s what strong consumer protections are for.”

The Older Persons Advocacy Network (OPAN) also welcomed the reforms but argued uncertainty remains for residents who entered aged care after 1 November 2025.

“It is pleasing to see media reports that some providers are refunding older people for being unfairly charged for extra services since 1 November 2025,” OPAN director policy, education and systemic advocacy Samantha Edmonds said.

“While these changes provide greater certainty for existing residents, they do not establish a clearer boundary between what is considered standard aged care and what can legitimately be charged as a HELF.

“OPAN continues to hear concerns about HELF charges relating to services many older people reasonably expect to be part of everyday residential aged care, including televisions, access to basic internet and food options.”

The organisation maintains its concern that excluding newer residents from basic services like in-room TV or WiFi goes against the original intent of the new rights-based Act.

“HELF risks creating a two-tiered aged care system, where quality of life may depend on an older person’s ability to pay rather than genuine choice,” Ms Edmonds said.

“OPAN is not opposed to optional extras in aged care. However, they should never become a barrier to necessary care, dignity or informed choice.”