Jeff Gilling was shocked when he reviewed the contract for his mother Dorothy's aged care home. It included a $52 daily fee for Foxtel, outings, newspapers, and wine. Dorothy had advanced dementia and could not use these services. Despite his concerns, the fee was deemed non-negotiable, and he signed under emotional duress.
Family secures $37,000 refund after challenging unlawful fees
Gilling later researched his mother's rights and challenged the Estia Health facility in Sydney's north-west. He successfully secured refunds totaling $36,829: $26,741 in February 2021 for 537 days in a dementia support unit, and an additional $10,088 in October 2021 covering fees from the start of her stay.
Gilling stated, "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."
Regulator investigates 199 complaints about fees
The Aged Care Quality and Safety Commission received 199 complaints about fees and charges in the first half of 2026. Of these, 121 involved for-profit providers, 75 not-for-profit, and three government providers. The commission launched investigations into several providers for allegedly illegal additional fees.
Commissioner Liz Hefren-Webb told Guardian Australia, "These investigations are ongoing. Because of this, we won't provide further details at this time." She noted that some providers have voluntarily reviewed and changed their practices.
Class action against Arcare alleges illegal charges
For-profit provider Arcare faces a class action alleging it charged residents for services like high teas and exercise classes they could not use due to health issues, and for basic services it is legally obliged to provide. 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."
New fee structure raises concerns about a two-tier system
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 reduced standards to pressure residents into purchasing premium options.
Dr. Sarah Russell, director of Aged Care Matters, said Helf has created a "two-tier" system: "Those who can afford the additional services, and those who can't." She cited an example where a home charged for entertainment provided by a volunteer.
An Estia Health spokesperson said, "Where we find a charge was not right, we correct it, and refund what should not have been charged. Residents can request a review or opt out of additional services at any time."
