Home care vs residential aged care.
The first real fork for most families is whether care happens at home or in a residential aged care home. Here is the honest difference on cost, funding and everyday life, so you can work out which fits, and when.
| Home care (Support at Home) | Residential aged care | |
|---|---|---|
| Where care happens | In the person's own home | In a residential aged care home they move into |
| Government program | Support at Home (replaced Home Care Packages on 1 November 2025) | Residential aged care |
| What it covers | Help at home: personal care, nursing, allied health, cleaning, meals, transport, equipment | Accommodation, meals, personal and clinical care, 24-hour staffing |
| What you contribute | A share of the cost of everyday and independence services, set by your income and assets. Clinical care is fully funded | A basic daily fee, a means-tested care fee, and an accommodation payment (a lump sum, a daily payment, or a mix) |
| Who keeps the money | Your budget follows you. You can switch providers and exit fees are banned | Accommodation deposits are held by the home and refunded under a government-guaranteed scheme when you leave |
| Best when | The person is safe at home with the right support in place | Care needs are high, or home is no longer safe or manageable |
Work out the numbers
See what each path costs with our calculators, built on current government rates.
Support at Home budget calculator
Residential RAD and DAP calculator
See the real options near you
A free shortlist puts home care and residential options side by side for your suburb, with official ratings and costs.
Common questions
Is home care cheaper than residential aged care?
Usually yes for the person receiving care, because they are not paying for accommodation and around-the-clock staffing. But home care only works while someone can be kept safe at home. As needs rise, the hours of paid support required at home can approach or exceed the cost of a residential place, which is the point at which many families move.
Can you start with home care and move to residential care later?
Yes, and most families do exactly that. Home care with a Support at Home budget is the common first step, and a move into a residential home happens later if care needs grow or home stops being safe. Your My Aged Care assessment can cover both, so you are not starting from scratch.
Do I have to sell the family home to pay for residential care?
Not necessarily. The home is often exempt or only partly counted depending on who still lives there, and accommodation can be paid as a refundable lump sum, a daily payment, or a combination. This is worth getting personal financial advice on, because the right structure depends on your full situation.
How do I compare specific providers near me?
Ask CareShortlist for a free shortlist. We show every government-listed home care and residential provider for your area with the official Star Ratings, and no provider can pay to rank higher.