Class action targets Arcare over 'signature package' fees for services immobile residents cannot use

A class action lawsuit has been filed in the federal court against one of Australia's largest aged care providers, Arcare, alleging the company illegally charged residents for services they could not use due to immobility and other issues. The Guardian reported that the suit covers residents across more than 50 Arcare facilities in four states and involves a daily "additional services fee" embedded within a "signature package" charged between July 2020 and July 2026.

The GuardianAustralian aged care firm accused in class action of charging residents for high teas and classes they couldn’t use

"residents ... were charged a daily 'additional services fee' by Arcare embedded within a 'signature package'"

The fees include charges for services such as high teas and exercise classes, meaning residents who are unable to move or participate are still billed for these offerings.

michaelwest.com.au reported that regulators, government ministers, and the Commonwealth Ombudsman were aware of Arcare's practices but failed to take action. The outlet also noted that journalist Sarah Russell broke the story of elder abuse, exposing systemic failures in aged care oversight.

michaelwest.com.auArcare faces class action for overcharging aged care residents as regulators accused of turning blind eye

"regulators, government ministers, and the Commonwealth Ombudsman were aware of Arcare's illegal practices but failed to act"

This lack of enforcement, despite prior knowledge, has drawn criticism and raised questions about accountability in the sector.

Arcare has said it is unable to comment on the case, according to The Guardian. The class action seeks to address what it argues were unlawful charges that placed an unfair burden on vulnerable residents and their families.