Dorothy’s aged care home charged $52 a day for Foxtel, wine and newspapers that were no use to her. She wasn’t alone
Families Face Unjust Aged Care Charges as Regulator Launches Investigation
Dorothy s aged care home charged 52 - When Jeff Gilling carefully reviewed the admission paperwork for his mother Dorothy's transition into aged care, he encountered an unexpected financial burden. The contract stipulated a daily charge of $52 covering amenities such as Foxtel television, organized outings, newspaper subscriptions, and a selection of wines. This fee seemed particularly inappropriate given Dorothy's condition. "She was in advanced stages of dementia, and so couldn't even turn on the TV, let alone choose a channel or enjoy what she was watching," Gilling explained to reporters.
Despite his concerns, Gilling was informed that this supplementary service fee was mandatory rather than optional. He signed the agreement, recognizing the emotional weight of the situation. "She was being charged for services that she simply couldn't use or enjoy. But the contract gets put in front of you, and your priority is to get your parent out of hospital and into better care, or out of the home into safe care, and so there's a lot of emotion," he reflected.
Seeking Justice for Mischarged Fees
After researching his mother's legal rights, Gilling challenged the aged care facility in Sydney's north-west where Dorothy resided. His persistence ultimately yielded substantial results—he secured nearly $37,000 in refunds. His experience is far from isolated. Across Australia, numerous families have discovered they or their loved ones were paying for services they could neither access nor comprehend.
The national regulator, the Aged Care Quality and Safety Commission, documented 199 complaints regarding aged care fees, funds, and service charges during the first half of 2026 alone. This surge prompted investigations into multiple providers accused of imposing illegal additional fees. Commission commissioner Liz Hefren-Webb confirmed that "these investigations are ongoing," noting that several providers have already voluntarily adjusted their practices.
Breakdown of Complaints and Legal Challenges
Of the 199 complaints specifically concerning fees and charges or funding for ageing-related services at residential facilities, the distribution reveals concerning patterns. One hundred and twenty-one complaints involved for-profit providers, seventy-five targeted not-for-profit organizations, and three addressed government-run facilities. The commission has indicated there are "several providers where we have concerns about misuse" of fees.
Meanwhile, Arcare faces a significant class action lawsuit alleging the company illegally charged residents for services including high teas, hot meals, and exercise classes. The allegations extend to situations where residents physically could not utilize these services due to health complications. The federal court action additionally claims Arcare collected extra fees for fundamental services it is legally required to provide, such as nutritious meal options.
An Arcare spokesperson stated that as the matter remains before the court, "it would not be appropriate to comment on the allegations or the legal proceedings." Damian Scattini, a partner at Quinn Emanuel Urquhart & Sullivan representing the class action applicants, revealed that the law firm is "actively investigating other operators."
Understanding Residents' Rights
Under aged care legislation, providers may only impose fees for additional care and services when residents have agreed to them, can access and benefit from the services, and possess the capacity to utilize them. Armed with this knowledge, Gilling contacted managers at Estia Health's Epping aged care facility in 2019.
"It is unconscionable – and I believe unlawful – for you to be charging this fee in respect of a resident with dementia who does not have the cognisant ability to choose the services or to benefit from them," he wrote in his correspondence. Following a regional manager's review, Gilling received $26,741 in February 2021, covering 537 days of charges while his mother resided in a dementia support unit. A subsequent refund of $10,088 was approved in October 2021 after Gilling successfully demonstrated that fees should never have been applied from his mother's first day at the facility.
"You really do need to kind of gather up your fortitude and arm yourself with stamina and confidence, because it is a bit of a battle, and you're really the David to their Goliath," Gilling observed regarding families fighting these charges.
Estia Health responded that when residents or families raise fee concerns, the matter undergoes review. "Where we find a charge was not right, we correct it, and refund what should not have been charged," a spokesperson explained. "Residents and their authorised representative can request a review of additional services, or opt out of them, at any time. Caring for older Australians, including those living with dementia, is a privilege and we take our obligations to them seriously."
Gilling emphasized that many families remain unaware that such charges may be unlawful or lack the resources to contest them. The ongoing investigations and legal actions suggest that systemic issues within the aged care sector require continued scrutiny and potential reform to protect vulnerable residents and their families from financial exploitation.