The introduction of Higher Everyday Living Fees (HELF) is one of the most significant commercial shifts in residential aged care in years. But how are providers responding and what does the data say about where the real financial opportunity sits?
At our recent webinar, we shared insights drawn from live polling across 150 organisations and Mirus's own sector data. Here's what stood out.
Most providers haven't made the leap yet
When we asked attendees how they're currently approaching HELF, the results reflected just how early the sector still is in this journey. Just over half — 51% — haven't implemented anything yet. Around 35% have introduced tiered or optional packages, while a small proportion have built HELF into their room price (7%) or adopted a hybrid model (7%).
That spread makes sense. HELF is a genuinely complex decision, and as our panel discussed, the right answer looks different for every organisation. What's clear is that the sector is still finding its feet, and there's real value in taking the time to get the approach right rather than rushing in.
Room prices aren't covering costs, the numbers are worth exploring
When we asked whether current room prices recover capital and operating costs, only 8% said yes, fully. About 28% said partially, and 14% said no. But the most thought-provoking number was that over 50% said they were unsure.
That level of uncertainty isn't unusual. Cost modelling in aged care is genuinely complex, and many organisations simply haven't had the time or tools to work through it in detail. But it does highlight an important opportunity. Understanding your cost position is the foundation of any good HELF strategy, whether you decide to offer it or not.
Operational complexity is the biggest fear
We also asked what providers see as their biggest concern with HELF packages. Over half (51%) pointed to operational complexity. Resident experience and satisfaction came in second at 26%, followed by margin and revenue impact at 15%, and market positioning at 8%.
It's understandable. Managing opt-outs, tiered services, and resident communication adds real workload. And confirming this, when asked how providers manage HELF opt-outs operationally, nearly a third (32%) said they haven't addressed it yet.
Complexity is manageable with the right systems and protocols in place. And the providers making progress with HELF are doing so by working through the operational challenges methodically, not by avoiding them.
The market landscape: where room prices actually sit
Looking across the industry, room pricing clusters most heavily in two bands: under $400,000 (16%) and $550,000–$599,000 (15%). The over $750,000 segment accounts for just under 10% of the market.
Geography plays a major role too. Average room prices in MM1 (major cities) sit around $609,000, compared to roughly $363,000 in MM7 (very remote). That's a $246,000 gap between metro and the most remote locations, a reminder that pricing strategy can't be one-size-fits-all.
The economics by price segment: Economy, Mid-Market and Premium
This is where the data gets particularly useful. We modelled the revenue and cost position across three pricing tiers.
Economy tier (under $400,000): Using a non-supported room price of $350,000 as an example, total daily revenue comes to around $159, against costs of approximately $152. The surplus is $7.41 per resident per day, a margin of 4.7%. It's a tight position, which is why getting the strategy right in this segment matters so much.
Mid-market ($400,000–$750,000): At a $600,000 room price, the picture improves significantly. Revenue rises to around $183 per day against the same cost base of $152. That's a surplus of $31 per resident per day, or a 17.1% margin. There's meaningful room to work with here.
Premium (above $750,000): An $800,000 room generates daily revenue of around $218 against the same $152 cost base, a surplus of nearly $67 per resident per day, or a 30.6% margin.
The cost base across all three tiers is essentially the same. What changes is revenue. And that's the core of the HELF opportunity.
The $650,000 inflection point
One of the clearest signals in the data is what we've started calling the inflection point.
Homes pricing above $650,000 show meaningfully higher accommodation and maintenance expenditure per resident per day, and they're generating surpluses that make HELF investment genuinely viable.
Below that threshold, margins are tighter. Above it, providers have greater financial capacity to deliver premium services, invest in the resident experience, and build HELF packages that residents actually value.
If you're sitting in the mid-market, it's worth asking whether your room prices are genuinely reflecting the quality of the home you're running.
Expenditure patterns: what are providers actually spending?
On accommodation and maintenance, providers in the premium segment ($750,000+) spend over $61 per resident per day, compared to around $40–$43 for the rest of the market. That investment tends to show up in the resident experience in tangible ways.
On food and catering, the spread is tighter, ranging from $39 to $44 across segments. The differentiation in premium homes is being built across multiple service dimensions, not just the catering budget.
Key takeaways
- The data points to four considerations for providers thinking about their HELF strategy.
- Know your segment. Understand where your room prices sit relative to the market and what that means for your margin position.
- Consider the $650,000 inflection point. If your pricing is below this threshold, it's worth assessing whether it genuinely reflects your cost base, quality of care, and the local market.
- Review your supported resident ratio. The accommodation supplement structure rewards providers who are actively managing their supported resident ratio. The economics are worth understanding.
- Align HELF with your capital strategy. HELF is a signal to residents and families about the quality of your home. Make sure your packages reflect your investment.
The sector is still in the early stages of working out what HELF looks like in practice. The providers taking the time now to understand their numbers, shape their packages, and communicate clearly will be well placed as the picture becomes clearer.
If you'd like to understand how your pricing compares to the market, get a copy of the Accommodation Pricing Report, which offers insights tailored to your organisation.
