It establishes the policy directions, in consultation with State Governments and the aged care industry and consumers, and provides the bulk of the administrative support and funding. The Commonwealth Government is responsible for defining outcomes and monitoring performance in residential aged care services. State Governments administer the Home and Community Care program through agreement with the Commonwealth and directly operate some nursing homes, hostels and community care services. Local governments provide some hostel and community care services, as well as having a regulatory role. The links between each level of government and the non-government sector are through formal agreements, such as the Home and Community Care Agreements, joint setting of strategic directions and joint planning processes, and consultative mechanisms.
Service providers are subject to legally enforceable conditions of grant.