Home care vs nursing home: how to weigh your options

Deciding whether to stay at home with support or move into an aged care home is a big decision, and it's normal to feel unsure. This guide compares home care vs nursing home care on three things most people weigh up: the level of care, the cost and your independence.

It is written for you, whether you are planning your own care or helping someone else. Either way, the choice belongs to the person who will receive the care.

What home care and residential care each mean

Home care brings support to the place you already live. For older people, government-funded home care includes Support at Home, which replaced Home Care Packages from 1 November 2025. If you had a Home Care Package, you now receive Support at Home. Services can include nursing, help with showering or dressing, cleaning and meals. My Aged Care lists what Support at Home provides.

An aged care home, also called residential aged care and often searched as a nursing home, is where you live and receive ongoing care. It provides your room, meals, cleaning and laundry, personal care and clinical care according to your needs. My Aged Care explains how aged care homes work.

Both options start with an aged care assessment, which works out what support you are eligible for. You can apply online or call My Aged Care on 1800 200 422.

Comparing the level of care

At home, your support is built around the services you are approved for and your budget. Care workers visit at agreed times. Between visits, you manage on your own or with help from people around you.

In an aged care home, help is available within the home itself, and meals and laundry are taken care of. That can suit someone whose needs are frequent or hard to predict.

These questions can help you work out which fits better:

• Which everyday tasks do you need help with, and how often?

• Do you need help at unpredictable times, including overnight?

• Would regular visits cover what matters most to you?

• What does your GP or health team suggest?

Needs can change. If you need more care than Support at Home can provide, My Aged Care says you may need to move into an aged care home. Your provider can talk with you about a reassessment. Read My Aged Care's guidance.

Comparing the cost of home care and residential care

The two options are paid for differently, and what you pay depends on your income and assets. General figures rarely match your situation, so use the official estimators and ask for costs in writing.

Under Support at Home, you contribute towards the services you receive, based on the type of service and an income and assets assessment. You make no contribution for clinical supports such as nursing. From 1 October 2026, the Australian Government fully funds personal care services you are approved for. See Support at Home costs and contributions and the fee estimator.

In an aged care home, every resident pays a basic daily fee. Depending on a means assessment, you may also contribute towards daily living, care and the cost of your room. See aged care home costs and fees and the aged care home fee estimator. My Aged Care suggests getting independent financial advice before moving into an aged care home.

Comparing independence and daily life

Staying at home keeps your routines, your neighbourhood and the people nearby. You choose the mix of services and can ask to change it. Support at Home can also fund equipment and home modifications you are assessed as needing.

An aged care home offers company and activities on site, and removes the work of running a household. Some people welcome having others around. Others value the privacy of their own front door. Both are reasonable preferences.

Wherever you receive care, your rights are protected. If you would like someone you trust involved in decisions, they can join the conversation.

Talk to your local HomeCaring team

If staying at home with support is the option you want to explore, talk to your local HomeCaring team. Tell us which parts of your day you need help with and what matters most to you. The team can explain which services are available in your area and how they could fit your Support at Home budget. Availability depends on the support involved, your location and the times you need.