Like many across the sector, we watched Monday night’s 60 Minutes investigation with interest. The allegations against Arcare, which are now the subject of legal proceedings, have understandably prompted important questions about additional service fees, consumer choice and transparency. Those matters will ultimately be determined by the Court.
However, beyond the specific allegations lies a broader question that deserves equal attention.
Has the sector fully appreciated what the new Aged Care Act is actually asking providers to change?
Much of the discussion has centred on Higher Everyday Living Fee (HELF), but HELF may ultimately prove to be one of the first visible expressions of a much broader transformation occurring across residential aged care. The legislation is not simply introducing new funding arrangements or additional compliance obligations. It is signalling a gradual shift in how care is designed, delivered and governed.
For decades, residential aged care has, understandably, been built around consistency, operational efficiency and standardised service delivery. The reforms now taking shape suggest a different direction – one where the individual resident increasingly becomes the centre of the operating model.
Across supported decision-making, strengthened consumer rights, Higher Everyday Living and the revised Quality Standards, a consistent philosophy begins to emerge. Providers are being encouraged to move beyond asking, “What services do we provide?” and instead ask, “What matters to this individual resident, and how do we demonstrate we’ve delivered it?”
That may appear to be a subtle distinction, but operationally it represents a profound shift. It challenges organisations to rethink not only the services they provide, but also the systems, governance and culture that underpin those services.
Higher Everyday Living is perhaps one of the clearest examples of that transition
Under the previous framework, many providers developed Additional Services or Signature Packages that bundled enhanced services into a single daily fee. The proceedings currently before the Court relate to allegations about one provider’s approach under that former model, and it would be inappropriate to speculate on the outcome.
Regardless of where those proceedings ultimately land, they have prompted a broader conversation about transparency, resident choice and the expectations consumers increasingly have of aged care providers.
The HELF framework appears to reflect that changing philosophy. Rather than asking whether every resident receives the same package of enhanced services, providers are increasingly being challenged to consider how residents make informed choices, how those choices evolve over time, and how organisations demonstrate that those services are being delivered in line with individual preferences.
The conversation, in many respects, is moving away from standardised packages and towards personalised everyday living.
That presents both an opportunity and a challenge
Delivering personalised services at scale is inherently more complex than delivering the same offering to every resident. Every person enters residential aged care with different aspirations, interests, cultural backgrounds, health needs and definitions of what constitutes a good day. Those preferences will inevitably change over time. Supporting that level of individualisation requires organisations to think differently about admissions, consent, service selection, dining, lifestyle, billing, documentation and ongoing review.
The real challenge, therefore, may not be pricing at all – it may be operationalising personalisation.
This is where the conversation becomes much broader than Higher Everyday Living
The reforms invite providers to consider whether their operating models have evolved alongside the legislation. Can existing governance frameworks support greater consumer choice? Do organisational processes allow services to change as residents’ preferences evolve? Can providers clearly demonstrate not only what was offered, but what was agreed, delivered and reviewed?
Increasingly, the expectation appears to be shifting from intention to evidence.
Historically, providers have been expected to deliver quality care. Increasingly, they may also be expected to demonstrate how individual choice has informed that care, how services have been tailored to the resident, and how those decisions have been reviewed over time. This represents more than another compliance requirement. It reflects a broader movement towards transparency, accountability and consumer-centred care.
For boards and executive teams, these reforms therefore raise questions that extend well beyond Higher Everyday Living itself
Does our operating model genuinely reflect the direction of the new legislation? Are we designing services around the individual, rather than organisational convenience? Can we confidently demonstrate the value residents receive? Do our systems support informed choice, transparency and ongoing review? Are we building the governance capability required for the next decade of aged care?
These are not simply operational questions – they’re strategic questions that go to the heart of organisational sustainability, reputation and trust.
Recent public scrutiny serves as a timely reminder that community expectations of aged care continue to evolve. Consumers increasingly expect genuine choice. Families expect transparency. Regulators expect evidence. Boards seek assurance that governance arrangements align not only with legislative requirements but also with community expectations.
Viewed through that lens, the new Aged Care Act is not simply introducing another set of compliance obligations. It is encouraging the sector to rethink the relationship between providers and residents – from one built around standardised service delivery, towards one centred on partnership, personalisation and demonstrated value.
The providers that thrive over the coming decade may not simply be those that adapt to legislative change. They may be those that recognise something much bigger is occurring.
The new Aged Care Act is gradually reshaping the operating model of residential aged care. Higher Everyday Living is simply one of the first places where that transformation becomes visible.
