Choice, Transparency, & Freedom – The Future of Extra Services in Residential Aged Care
August 9th, 2025 
From 1 November 2025, providers are prohibited from entering into new “additional service fee” or “extra service fee” agreements with residents.
Anything beyond core care and accommodation now needs to be treated just like it would in someone’s own home, giving residents the freedom to choose what they buy, who they buy it from, and how they pay for it.
Extra services are being replaced by a new optional Higher Everyday Living Fee (HELF) arrangement whereby service charges can exist, however, must be available individually, and residents cannot be charged for any service they do not want or cannot use.
This is a big step towards a community-like living model inside residential aged care.
It means optional services must be:
- Truly voluntary
- Clearly itemised
- Free from being bundled into fixed fees
What Counts as “Extra Services”?
Residents can now spend their own funds on a wide range of lifestyle and personal services, such as:
Internal to the facility:
- Premium meal upgrades
- Entertainment (Foxtel, Wi-Fi)
- Outings and excursions
- Upgraded rooms and linen
- Wellness programs (aromatherapy, spa, gyms)
- Concierge or personal assistance services
External providers:
- Hairdressing & beauty treatments
- Café or dining expenses
- Podiatry & allied health services
- Pharmacy purchases
- Outing and shopping costs via lifestyle cards
Why This Matters
The intent is clear, aged care is not just about medical and personal care, but about supporting choice, independence, and lifestyle.
For residential care providers, this change will also mean:
- Updating agreements and billing practices
- Ensuring systems are in place for transparent, resident-led purchases
- Managing payments in a compliant, arms-length way
In short: Residents in aged care will now be able to live and spend, more like they would in their own home.
To eliminate administrative and financial burdens of collecting personal contributions in arrears on residents, their families and the public trustee, aged care operators are turning to Capital Guardians.
Capital Guardians has been operating since 2008, with over 30,000 resident accounts managed within an Australian Financial Services License, is the only provider of residential care digital wallets (trust accounts) in Australia and New Zealand.
For $1 per month by residential aged care operators, Capital Guardians provides residents an individual, secure wallet to hold funds for lifestyle purchases. Internal or external approved suppliers bill directly, payments are made weekly, and all transactions are visible online with automated approvals.
A Step Towards Community-Like Living
The new legislation reinforces a simple truth, aged care is about living, not just care. By unbundling extra services from core fees, the system now mirrors how people manage their own spending in the community.
