Ageing in Place vs Aged Care: The Costs

Three stacks of coins sit alongside a wooden cut-out of a house shape.Most people want to stay in their own homes rather than go to an aged care institution. The Royal Commission into Aged Care report confirmed this. And the obvious follows – it’s also beneficial for governments because the costs of home care are less than institutional care. But are our homes designed to support care at home?

According to an AHURI Brief, on average, someone on a home support program costs the Government around $3,900 per year. The cost of a person living in residential care costs around $69,000 a year. These figures are the annual ongoing cost per person. The cost of a home care package ranges from $9,000 a year to $52,000 per year depending on the level of support. 

The AHURI Brief includes a chart comparing the various costs of of the different packages and support against the cost of residential care. Another cost that could be reduced is the need for home modifications. Not only can people stay home more safely, care hours are also reduced. In rental accommodation such modifications can be denied by the landlord. That will lead to early entry into an institution. 

The AHURI Brief concludes, “We note that there is currently no discernible connection between the Australian Government aged care program and any Australian or State or Territory Government housing program. This must change.”

The title of the AHURI Brief is, Better supporting older Australians to age in place

AHURI (Australian Housing and Urban Research Institute) is a national independent research network. AHURI’s work informs policy about housing and urban development. They have not engaged with the proposed reforms to the National Construction Code for improved accessibility in all new housing.  


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