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Aged Care Company Accused of Charging Residents for Services They Couldn't Use

Elena MarquezPublished 3w ago4 min readBased on 2 sources
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Aged Care Company Accused of Charging Residents for Services They Couldn't Use

An Australian aged care company called Arcare is being sued for allegedly collecting over $100 million from elderly residents by forcing them to pay for amenities they couldn't actually use. A lawyer named Damian Scattini filed the case on behalf of residents at more than 50 Arcare facilities across four states. An 82-year-old woman named Dianne Strickland is the main plaintiff representing the group. The alleged unfair charges happened between July 2020 and July 2026.

Arcare required residents to pay for what it called a "signature package"—extra services bundled together that came with a daily fee. The company presented this as non-negotiable: pay it or don't get admitted. The lawsuit claims the fee amount wasn't the same for everyone. Instead, Arcare looked at each resident's finances and charged them based on what they could afford to pay, not based on what the services actually cost.

The examples are striking. Residents who could only eat pureed or specially prepared food were still charged for high teas and alcoholic drinks they couldn't consume. People who couldn't walk or were bedridden were billed for bus trips and exercise classes. Some residents too confused or ill to even turn on a TV—and in some cases unconscious—were charged for Foxtel, newspapers, and internet, according to court documents reported by The Guardian.

The lawsuit uses a legal concept called "unconscionable conduct." In plain terms: taking unfair advantage of someone in a weak position. Residents have nowhere else to go—they need housing and care—so they have almost no choice but to accept whatever terms are offered. The law says a company can't use that power against them unfairly.

The $100 million figure, reported by Nine/60 Minutes, is the total of all the fees Arcare collected from residents over six years. How many residents are included and exactly how much each one might get back hasn't been announced yet. Arcare hasn't filed its response to the court.

Aged care in Australia has been under close watch since 2021, when a major government review called for sweeping changes. One area that has worried regulators is the system that lets aged care companies charge extra fees beyond the basic daily rate. The concern: companies might be tempted to charge for things just because they can, not because residents need or want them. This lawsuit tests whether Arcare crossed that line.

Arcare is a for-profit company, meaning it keeps money left over after expenses or gives it to owners and shareholders. This matters because the courts and government are particularly watchful of for-profit aged care providers. A loss in this lawsuit, or even a big settlement, would harm Arcare's reputation and might push the government to create stricter rules about how extra fees are charged and checked across the whole sector.

No court date is set yet. Since Arcare hasn't filed its defence, the allegations haven't been tested in court. The first step is for a judge to decide if the case can be heard as a class action—a legal process that lets one person represent a large group with similar complaints. If the judge approves, then the real case can move forward.