The Aged Care Quality and Safety Commission has received 199 complaints about fees and service charges in the first half of 2026, leading to investigations into providers charging allegedly illegal additional fees. Of these, 121 relate to for-profit providers, 75 to not-for-profit, and three to government providers.
Family Fights Back Against Unlawful Charges
Jeff Gilling discovered his mother Dorothy, who had advanced dementia, was charged $52 daily for Foxtel, wine, newspapers, and outings at Estia Health's Epping facility in Sydney's north-west. 'She was being charged for services that she simply couldn't use or enjoy,' he said. After researching his mother's rights, Gilling successfully argued the fees were unlawful and received refunds totaling $36,829 in 2021.
According to aged care legislation, providers can only charge for additional services if the resident agrees, can access and benefit from them, and has the capacity to use them. Gilling wrote to Estia Health in 2019, calling the practice 'unconscionable and unlawful.' The regional manager reviewed the case and approved a $26,741 refund for 537 days in a dementia support unit, followed by a further $10,088 refund from the date of admission.
Regulator Investigation and Industry Response
Commissioner Liz Hefren-Webb confirmed the commission is investigating several providers over concerns about misuse of fees. 'These investigations are ongoing,' she said, noting some providers have voluntarily reviewed and changed practices. Meanwhile, for-profit provider Arcare faces a class action alleging illegal charges for services like high teas and exercise classes that residents could not physically use.
An Arcare spokesperson declined to comment as the matter is before the court. Damian Scattini, partner at Quinn Emanuel Urquhart & Sullivan, said the firm is 'actively investigating other operators.' Estia Health stated that when concerns are raised, they are reviewed, and any incorrect charges are refunded.
New Fee Structure Raises Concerns
In November, the government introduced the Higher Everyday Living Fee (Helf), allowing charges for premium services beyond mandatory care. Hefren-Webb expressed concern that some providers have reduced standards, such as meal quality, to pressure residents into purchasing premium options. 'Providers cannot use Helf arrangements to reduce the quality, quantity, choice or nutritional adequacy of the standard meal service,' she said.
Dr. Sarah Russell, director of Aged Care Matters, warned Helf creates a 'two-tier' system where those who can afford extras receive better services. She cited an example where entertainment was charged as an extra despite being provided by a volunteer. Gilling noted that not all families are aware of their rights or have the ability to fight such charges, calling it 'a bit of a battle.'
