My parent was just told they need residential care
What does that actually mean — and what do you do now?
Someone — a doctor, a hospital social worker, or an ACAT assessor — has said your parent needs residential care. This is one of the most confronting moments a family faces. Here's what it actually means, what rights your parent has, and what to do first.
By Steve Hadfield, AgedCareActionPlan.au · Last updated: 25 April 2026
The most important thing to know first
A recommendation for residential care is not a legal requirement. Your parent has the right to make decisions about where they live — including the right to stay at home even if others consider it unsafe. Nobody can force your parent into residential care against their will if they have mental capacity.
What changes when residential care is recommended is urgency — if staying home is becoming unsafe, acting quickly on planning (rather than the move itself) matters.
What it means depending on who said it
A doctor or specialist said it
This is a clinical opinion, not a formal eligibility decision. It means a medical professional believes residential care is the safest option. But it does not automatically trigger anything — your parent still needs a formal ACAT assessment to access government-funded residential care.
What to do: Ask the doctor to document their clinical reasoning in a letter. This will support the ACAT assessment process.
A hospital social worker said it
Hospital social workers manage discharge planning and often suggest residential care when home discharge is complicated. They may be recommending it because of time pressure (the hospital needs the bed) rather than because it's the only option.
What to do: Ask specifically: Is residential care the only safe option, or are there alternatives? Ask about Transition Care — this can provide recovery time while longer-term options are explored.
The ACAT assessor approved residential care
This is a formal eligibility approval. Your parent is now approved to access government-funded residential care. This approval doesn't expire and doesn't mean they must go — it means they can go when ready.
What to do: You now have time to research facilities, get a financial assessment, and make the decision carefully. Start the financial assessment with Services Australia (1800 227 475) — it takes weeks and is needed before any permanent admission.
Before making any decision — four things to do first
1Get a financial assessment. Call Services Australia on 1800 227 475. This tells you exactly what residential care will cost based on your parent's income and assets. It takes time — start it now even if the move is weeks away.
2Visit facilities in person — before there's a crisis. Waitlists for good facilities can be months. Starting the search now, even if the move isn't imminent, gives you options.
3Ask about Support at Home at a higher level. Depending on your parent's classification, a higher-level Support at Home package may provide enough support to remain at home safely. Ask the ACAT assessor whether this has been considered.
4Talk to your parent alone — without other family members present. Ask what they want. Their answer is the north star. Many families spend weeks deciding on residential care before asking the person at the centre of the decision.
What does residential care cost?
There are three components — every resident pays all three:
Basic daily fee
Set at 85% of the single basic Age Pension — $65.55/day as at 1 November 2025, indexed upward from 20 March 2026. Covers day-to-day living costs (meals, laundry, cleaning). Everyone pays this regardless of income or assets.
Means-tested care fee
Based on your parent's income and assets, assessed by Services Australia. Ranges from $0 to a capped annual maximum. Call Services Australia (1800 227 475) to get an estimate before making any decisions.
Accommodation payment
Covers the cost of the room. Paid as a lump sum (RAD — Refundable Accommodation Deposit, fully refundable when you leave) or an ongoing daily fee (DAP), or a combination of both. Amount varies significantly by facility and room.
Key contacts for this situation
My Aged Care
Confirm ACAT approval status, search for facilities, understand next steps.
1800 200 422
Services Australia — Aged Care Line
Financial assessment — tells you what residential care will cost based on your parent's situation.
1800 227 475
OPAN — Older Persons Advocacy Network
Free advocacy if you have concerns about a rushed discharge or need help understanding your rights.