Consultation on Residential Aged Care Accommodation Pricing - Australian Government Department of Health, Disability and Ageing - November 2025
In November 2025, The Salvation Army provided a submission to the Department of Health, Disability and Ageing’s independent review into residential aged care accommodation pricing.
As a mission-driven provider of aged care services, The Salvation Army operates 19 residential aged care facilities across Australia, with over half of residents receiving full or partial government support. Three of these sites offer specialised homelessness aged care services. The submission draws on this experience to highlight the importance of equitable access to quality residential aged care accommodation.
The Salvation Army outlines how current accommodation supplements often fall short of covering the true cost of providing quality accommodation, especially in regional areas and facilities with high proportions of supported residents. The submission also discusses the importance of retaining Refundable Accommodation Deposits (RADs) and Refundable Accommodation Contributions (RACs) as payment options, recognising their role in supporting financial sustainability and consumer choice.
Key recommendations include increasing the base rate of the Accommodation Supplement to reflect full cost recovery, introducing a tiered model for regional facilities and facilities with a high proportion of supported residents, and reforms to pricing and payment mechanisms for non-supported residents.
The Salvation Army remains committed to ensuring that all older Australians—regardless of income or location—have access to safe, dignified, and high-quality aged care accommodation.