$100M class action launched against Arcare Aged Care

A global law firm has launched a class action against the private aged care operator, with allegations aired on last night’s Channel 9 ‘60 Minutes’ program titled ‘Age of Greed’.

The class action, launched by law firm Quinn Emanual Urquart & Sullivan, relates to aged care residents between 3 July 2020 and 2 July 2026. The law firm claims Arcare Aged Care required residents to accept its Signature Package, a bundle of additional services, as a condition of entry to its facilities for a daily fee.

The lawyers allege Arcare Aged Care was legally required to provide residents with many of the services included in the Signature Package, meaning residents were charged for services they had already paid for.

They allege Arcare Aged Care breached consumer law and the Aged Care Act 1997.

“Elder abuse”

The 60 Minutes program alleged residents overpaid fees totalling $100 billion.

Quinn Emanual Urquart & Sullivan Partner Damian Scattini told the program the practice of Signatures Packages was “unconscionable” and “reprehensible”.

Aged care advocate Dr Sarah Russell went further, labelling Arcare’s fees for additional services as “financial elder abuse”.

Resident “heartbroken”

60 Minutes focused on three resident stories. Two stories dated back to 2024 and the previous Additional Services program under the 1997 Aged Care Act.

The concerns related to the Signature Packages, where residents paid for services they would not use, such as wine with dinner for a teetotaller and WiFi for a resident who could not use the internet. The charges amounted to around $30 a day, or more than $10,000 annually.

Leslie Hollingworth’s mother Dawn was an Arcare resident in 2024. When Leslie asked the operator about the fees her mother was paying but could not use, she claims the operator recommended they inform the regulator, the Aged Care Quality and Safety Commission (ACQSC). Leslie said the regulator told them the detail was in the contract they signed and recommended they seek legal advice.

The 60 Minutes program also addressed the new fee structure, Higher Everyday Living Fees (HELF), which was introduced on 1 November 2025, replacing the Additional Services program.

Arcare resident, Keith, did not take up the additional package of HELF services. When he expressed interest in attending an outing to the Living Legends Champion Horse Complex, Keith, an avid race-goer, was not permitted to attend.

His granddaughter, Sarah, said: “It was the only thing out of all the activities they had on offer that he really wanted to do and he just wasn't allowed to.” The program said Keith was left heartbroken.

Keith’s decision also meant he was not allowed extra choice for his meals, and his family had to fight for him to be served soup when he was having difficulty eating and was losing weight.

Regulator toothless

60 Minutes claimed the regulator was “powerless” and “underperforming” in the face of complaints about Arcare’s fees, but Aged Care Minister Sam Rae told the program the ACQSC is “doing an excellent job”.

Arcare has issued a statement:

“As the matter you have referred to is currently before the Federal Court, it would not be appropriate for Arcare 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. We value feedback from our residents and their families and encourage anyone with questions or concerns about their own care or services to speak with their Residence Manager or contact us through our established feedback and complaints process.”

Arcare operates 60 aged care homes and has about 20 under construction.

The aim of the class action is to recover the fees paid under the Signature Packages, but the fallout from the legal proceedings will be far broader.