Home Care vs Residential Care: Which Option Is Right for Your Loved One?

At Aged Care Simplified, we understand how emotional and complex this choice can be. Every family’s situation is different, and understanding the advantages, challenges, and costs of each option can make the path forward much clearer.

What Is Home Care?

Home care allows older Australians to remain living in their own homes while receiving support services that help maintain independence and wellbeing.

These services are usually funded through the Commonwealth Home Support Programme (CHSP) or the Home Care Packages (HCP) program — soon to be replaced by the new Support at Home Program under the government’s Aged Care Reform Agenda.

Common home care services include:

• Personal care (showering, dressing, grooming)

• Domestic assistance (cleaning, laundry, shopping)

• Nursing or allied health visits

• Transport to appointments or social activities

• Home modifications or safety equipment

Benefits of home care:

• Stay in the comfort of familiar surroundings

• Maintain independence and daily routines

• Flexible levels of support that can increase as needs change

• Often lower out-of-pocket costs than residential care

Considerations:

• Family members may still need to coordinate or oversee care

• Home environments must be safe and accessible

• Higher-level medical or 24-hour care may not be available

What Is Residential Aged Care?

Residential aged care (also known as a nursing home or aged care facility) provides 24-hour care, accommodation, and support for older people who can no longer live safely or comfortably at home.

Facilities are government-accredited and must meet national Aged Care Quality Standards. The level of care can range from low to high, including dementia-specific and palliative care.

Services typically include:

• 24/7 nursing and personal care

• Meals, laundry, and cleaning

• Medication management

• Social and recreational activities

• On-site allied health or medical support

Benefits of residential aged care:

• Access to professional, around-the-clock support

• Peace of mind for families

• Purpose-built environments designed for safety and comfort

• Opportunities for social connection and activities

Considerations:

• Leaving the family home can be emotionally difficult

• Less independence and privacy than at home

• Costs can be higher, especially for accommodation

Comparing Home Care and Residential Care

Feature	Home Care	Residential Aged Care
Living Arrangement	Remain in your own home	Live in a dedicated care facility
Care Level	Flexible, part-time or full-time support	24-hour nursing and personal care
Funding	Home Care Packages (HCP) / CHSP	Government subsidy + fees + accommodation
Independence	High – control over daily life	Moderate – routines are set by facility
Family Involvement	High	Moderate
Social Environment	Limited, depending on activities	Built-in social community
Best For	People needing low to moderate care	People needing ongoing, high-level support

Understanding the Costs

Both options are partly funded by the Australian Government, but they have different fee structures.

• Home Care: Costs depend on your package level and income. You may pay a basic daily fee and an income-tested fee.

• Residential Care: Fees include a basic daily fee, means-tested care fee, and accommodation costs such as a Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP).

These details can be complex — especially with ongoing reforms to the Aged Care Act 2024 and the new funding models coming into effect in 2025.

That’s where Aged Care Simplified comes in. We help families understand their options, estimate costs, and complete all required Centrelink and aged care documentation.

How Aged Care Simplified Can Help

At Aged Care Simplified, we provide clear, compassionate guidance to help you choose the best care pathway for your family.

We can assist you with:

• Understanding eligibility for home care or residential care

• Comparing costs and funding options under the new aged care reforms

• Completing Centrelink forms and financial assessments

• Finding accredited care providers that meet your needs

• Supporting you through the transition process — from home to care, or between providers

Our goal is to help families feel informed, supported, and confident in every decision.

Final Thoughts

Choosing between home care and residential aged care isn’t easy. Both options offer important benefits, but the right choice depends on your loved one’s health, independence, and personal preferences.

With expert guidance from Aged Care Simplified, you can explore each option fully, understand the costs and obligations, and make a decision that supports your family’s wellbeing — today and for the future.

Contact Aged Care Simplified today to discuss your situation and learn how we can simplify your aged care journey.