If you are concerned about the high cost of aged care services, you are not alone. Across Australia, families are questioning why care packages that appear generous on paper can quickly feel stretched in practice.

Critics argue that in many cases, service charges are too high and restrict the number of supports older Australians can access. Providers, however, say current aged care pricing reflects rising wage costs and regulatory obligations. They also argue higher charges are necessary to maintain safe and sustainable services.

At the centre of the debate is a growing tension between affordability for families and viability for providers. So, what is really driving the cost of aged care — and why does it feel more expensive than ever?

Understanding the cost pressures of aged care

Australia’s aged care system is undergoing significant reform, with the transition to Support at Home reshaping how services are priced and delivered. At the same time, recent wage increases for care workers and growing demand from an ageing population have placed additional pressure on providers.

The two-hour minimum rule

Under the SCHADS Award, which governs social and community services workers, employees are generally entitled to a minimum two-hour shift.

This means that if a worker is rostered for a short visit — and there are no other clients scheduled immediately before or after — the employer must still pay them for two hours. Providers argue this is an industrial obligation rather than a discretionary policy.

For aged care clients, however, the impact can be significant. If a visit such as a one-hour shower triggers a two-hour minimum payment, the cost charged to the package may reflect the full two hours. In some cases, that can amount to close to $200 per visit, depending on the provider’s hourly rate.

Critics say this accelerates the depletion of care budgets. This leaves fewer funds available for other supports over the course of the year.

Concerns over pricing transparency

Some critics say the real frustration is not with frontline workers, but with the lack of transparency around pricing structures. In some cases, providers charge more than $100 per hour for services.

However, support workers may earn only around $34 per hour before penalties, superannuation and other entitlements.

Industry experts note that the difference does not simply represent profit. Providers must cover superannuation, leave and workers’ compensation insurance. They also absorb training, compliance, travel time, scheduling gaps and administrative overheads. Recent Fair Work Commission wage increases have also lifted overall labour costs across the sector.

However, questions arise when clients are billed for two hours but receive a one-hour visit. Families want clearer explanations of how minimum shift rules and rostering models affect pricing. They also want to understand how business costs translate into the final amount charged to their package.

The concern, for many, is not that workers are paid too much — but that the system’s cost structure is difficult to understand.

Despite the debate around pricing and policy settings, one thing remains clear: aged care workers play an essential role in supporting older Australians to live with dignity, safety and independence. From personal care and medication support to companionship and daily living assistance, their work is both physically demanding and emotionally significant. As Australia’s population ages, the need for compassionate, skilled aged care professionals will only continue to grow — making it a meaningful and secure career path for those who want to make a real difference.

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Article References

Hellocare (13 February 2026) ‘$200 for a shower. This is what aged care has come to’, Hellocare, accessed 23 February 2026.