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

More than 50 Arcare aged care facilities are alleged to have charged residents for additional services they could not use or for services they were legally obliged to provide, according to a federal court claim. Photograph: Daniel Pockett/Getty Images View image in fullscreen More than 50 Arcare aged care facilities are alleged to have charged residents for additional services they could not use or for services they were legally obliged to provide, according to a federal court claim. Photograph: Daniel Pockett/Getty Images Australian aged care firm accused in class action of charging residents for high teas and classes they couldn’t use Arcare says it’s unable to comment on the federal court case in which it’s alleged it illegally charged fees Get our breaking news email , free app or daily news podcast Residents at one of Australia’s largest aged care providers have launched a class action lawsuit alleging fees for services such as high teas and exercise classes were illegally charged to clients who cannot use them due to immobility and other issues. The suit, filed in the federal court, alleges residents of more than 50 Arcare aged care facilities across four states were charged a daily “additional services fee” by Arcare embedded within a “signature package” between July 2020 and July 2026. This includes fees paid by residents who are immobile, unable to swallow, or cognitively impaired. The statement of claim alleges that Arcare, a for-profit provider, charged these fees for services, such as meals, that it is already legally obliged to provide, but also for additional services residents could not use. Sign up for the Breaking News Australia email According to aged care legislation, providers can only charge fees for additional care and services where a resident agrees to it; is able to access and benefit from the services; and has the capacity to make use of them. It’s alleged Arcare engaged in unconscionable conduct because residents were in an unequal bargaining position, through their reliance on aged care due to medical or social needs. These residents were told the signature packages were non-negotiable, and that the additional services fee was a mandatory condition of admission, the statement of claim alleges. “The signature package included mandatory services that Arcare was obliged to provide … and could not lawfully charge for as additional services,” the statement of claim says. An industry targeting Australia’s ageing population is growing, but can AI deliver more humanity in aged care? Read more Arcare has yet to file its response to the court. An Arcare spokesperson said as the matter was currently before the court, “it would not be appropriate to comment on the allegations or the legal proceedings”. “Arcare remains committed to providing high-quality care and services that support each resident’s choice, independence and dignity,” the spokesperson said. “We value feedback from our residents and their families.” High teas, Foxte