A major Australian aged care provider is facing a class action lawsuit, accused of charging residents for services such as high teas and activity classes that they were unable to use. The legal action, filed in the Federal Court, alleges that the company imposed fees for a range of lifestyle and wellness programs that were either not provided or inaccessible to many residents.
Details of the Allegations
The class action, brought by law firm Maurice Blackburn on behalf of current and former residents, claims that the provider charged thousands of dollars in additional fees for services like high teas, art classes, and exercise sessions. Residents and their families say they were billed for these services even when residents were too ill to participate, or when the activities were cancelled or not offered at all.
According to the lead plaintiff, a resident's daughter, her mother was charged over $5,000 over two years for services she could not use due to her declining health. “They continued to charge for high teas and classes even when Mum was bedridden. It felt like a betrayal of trust,” she said.
Impact on Residents and Families
The case highlights broader concerns about fee transparency and accountability in the aged care sector. Many families say they were not clearly informed about what the fees covered and were given little choice but to pay. The class action seeks compensation for all affected residents, potentially numbering in the thousands across multiple facilities.
Maurice Blackburn principal lawyer Sarah Atkinson stated, “These charges were presented as optional extras, but in practice, residents were often required to pay for a package that included services they could not access. This is a systemic issue that needs to be addressed.”
Regulatory and Industry Response
The Aged Care Quality and Safety Commission has noted the case and is reviewing its guidelines on fee disclosure. Industry bodies have called for clearer standards to prevent such disputes. The provider has not yet filed a formal response but has indicated it will defend the claims.
The case is expected to set a precedent for how aged care providers bill for ancillary services, with potential implications for government funding and resident rights. A hearing is scheduled for later this year.
