Eligibility for key aged care programs is assessed by Aged Care Assessment Teams (ACATs). These teams also make recommendations on the preferred long-term setting for receiving care; that is, in the person's home or in a residential care facility. Analysis shows that there was considerable variation in care pathways within recommendation group. Rates of transition into permanent residential care varied with the use of community care and residential respite care. One-quarter of ACAT clients-including some recommended to live in residential care-did not use aged care services in the 2 years after their first assessment.