Lead

Families and regulators are raising concerns about aged care providers in Australia charging residents fees for services they cannot use due to health conditions or cognitive impairments. The national regulator, the Aged Care Quality and Safety Commission, received 199 complaints about aged care fees, funds, and service charges in the first half of 2026, and has launched investigations into several providers. Meanwhile, a class action lawsuit has been filed against one of the country's largest for-profit providers, Arcare, alleging illegal charging practices.

Coverage comparison

The Guardian reports that the Aged Care Quality and Safety Commission received 199 complaints about fees and charges at residential facilities in the first half of 2026, with 121 complaints relating to for-profit providers, 75 to not-for-profit providers, and three to government providers. The commission's commissioner, Liz Hefren-Webb, confirmed that several providers are under investigation and that these investigations are ongoing, without providing further details at this time. She noted that some providers have already voluntarily reviewed and changed their practices.

In a separate development, the Guardian reported on a class action lawsuit filed in the federal court on behalf of residents at more than 50 Arcare facilities across four states. The lawsuit alleges that between July 2020 and July 2026, Arcare, a for-profit provider, charged residents a daily “additional services fee” as part of a “signature package” that included services such as high teas, exercise classes, and Foxtel, even for residents who were immobile, unable to swallow, or cognitively impaired.

Key Claims

  • The Aged Care Quality and Safety Commission received 199 complaints about fees and service charges in the first half of 2026, with most complaints concerning for-profit providers.
  • The commission has launched investigations into several aged care providers over allegedly illegal additional fees.
  • Arcare, a for-profit provider, is facing a class action lawsuit alleging it charged fees for services that residents could not use, including high teas, exercise classes, and Foxtel, to residents who were immobile or cognitively impaired.
  • The lawsuit claims that Arcare engaged in unconscionable conduct, as residents were in an unequal bargaining position and were told the signature packages were non-negotiable.
  • The government introduced the Higher Everyday Living Fee (Helf) in November, allowing residents to be charged for premium services that go above the mandatory standard of care, raising concerns about a potential “two-tier” system.
The class action against Arcare is based on the allegation that the company charged fees for services it was already legally obliged to provide, as well as for additional services that residents could not use or benefit from. According to the Guardian's report, aged care legislation permits providers to charge fees only where residents agree, are able to access and benefit from the services, and have the capacity to make use of them.

A spokesperson for Arcare declined to comment on the allegations, citing the ongoing legal proceedings, but stated that the company remains committed to providing high-quality care that supports residents' choice, independence, and dignity.

Perspectives

Regulator's view

Liz Hefren-Webb, the Aged Care Quality and Safety Commission's commissioner, told the Guardian that several providers are under investigation for concerns about misuse of fees, but declined to provide further details due to ongoing investigations. She noted that some providers have already voluntarily reviewed their practices.

Arcare's response

An Arcare spokesperson said the company would not comment on the specific allegations because the matter is before the court. The spokesperson reaffirmed the company's commitment to providing high-quality care and services that support resident choice, independence, and dignity.