If you qualify for a Home Care Package, it is crucial to have a clear understanding of the fees involved, the government’s contribution, and how your budget will be allocated. It is advisable to familiarize yourself with this information before selecting a provider, as it can assist you in making an informed decision based on your care requirements and financial circumstances.
Upon receiving a Home Care Package, you will be allocated a budget to cover the cost of necessary services. The amount of your budget is determined by the level of care required, and includes contributions from both you and the government.
What comprises my Home Care Package budget?
The total amount of a Home Care Package consists of:
- The Australian Government’s contribution
- the subsidy and any supplements if eligible.
- Your contribution
- your basic daily fee, which is required from everyone receiving a Home Care Package
- your income-tested care fee, if you have been assessed as able to contribute.
- any additional fees that you agree to pay.
These funds collectively cover your care services, and the package management costs from your provider to coordinate and oversee your package services.
How does a Home Care Package budget function?
Your Home Care Package budget outlines the total funds available for your use. These funds are allocated to cover the expenses of your care and services as outlined in your care plan.
After selecting a provider and entering into a Home Care Agreement, your provider will itemize your package budget to include the necessary services and items based on your care plan.
For more information on selecting a Home Care Package provider and factors to consider when comparing costs, please visit Connecting with Home Care Package providers page.
How much does the government contribute to Home Care Packages in Australia?
The Australian Government provides varying amounts for each level of Home Care Package. The government subsidy for each package level is as follows:
|
Home Care Package |
Daily Government subsidy |
Fortnightly Government |
|
Level |
Rate |
Contribution |
|
Level 1 |
$29.01 |
$406.14 |
|
Level 2 |
$51.02 |
$714.28 |
|
Level 3 |
$111.04 |
$1,554.56 |
|
Level 4 |
$168.33 |
$2,356.62 |
These government contributions are updated annually on 1 July. If you are required to pay an income-tested care fee, the government subsidy will be reduced by that amount.
The government contribution is paid directly to the home care provider of your choice.
You will collaborate with the provider to determine the care and services you require within the package budget. Importantly, these funds will not impact on your pension as they are not considered income.
What fees will I be required to pay for my Home Care Package?
Your contribution towards your Home Care Package may include the following fees:
It is important to note that you may not be required to pay all of these fees. The amount you contribute towards your Home Care Package will depend on your financial circumstances and the provider you select. Each fee type and who is responsible for paying it will be explained in detail below.
Basic daily fee
The basic daily fee is a mandatory payment that all recipients may be asked to pay. This fee is determined by the government as a percentage of the single basic age pension, ranging from 15.68% to 17.50% depending on your Home Care Package level. The basic daily fee is adjusted in March and September each year to align with changes in the age pension.
As of 20 March 2024, the basic daily fee for each Home Care Package level is as follows:
|
Package level |
Daily fee |
Fortnightly fee |
|
Level 1 |
$11.43 |
$160.02 |
|
Level 2 |
$12.08 |
$169.12 |
|
Level 3 |
$12.42 |
$173.88 |
|
Level 4 |
$12.75 |
$178.50 |
Home Care Package providers may request that you pay a basic daily fee, although not all providers require this.
The basic daily fee is included in the government subsidy to enhance the funds accessible to you within your Home Care Package budget. If your provider does not impose this fee, you will have fewer funds at your disposal in your budget to cover your care expenses. Therefore, it is important to carefully consider your care requirements when selecting a provider to determine if paying the basic daily fee would be beneficial for you.
Income-Tested Care Fee
The income-tested care fee is an additional contribution that some individuals may be required to pay based on an income assessment. This fee varies for each person and is determined by their individual income, including any pension they may receive.
However, individuals who are full pensioners or have an income below $33,027.80 are exempt from paying an income-tested care fee.
You may be required to pay as much as $18.30 per day if:
- singles earning over $33,027.80,
- couples living together earning over $25,576.20,
- couples living apart due to illness earning over $32,351.80 may be subject to this fee.
The cost of the service ranges from $18.30 to $36.60, depending on your circumstances. You may be required to pay this fee if you fall into one of the following categories:
- Single individuals earning over $63,559.60
- Couples living together and earning over $48,588.80
- Couples living apart due to illness and earning over $62,883.60
Please note that these fees are subject to change and may vary based on your specific situation.
These fee caps are adjusted for inflation on 20 March and 20 September each year and are current as of 20 March 2024. The income-tested care fee is calculated by Services Australia and will impact the government subsidy provided for your Home Care Package.
It is important to note that changes in your financial situation can result in adjustments to your income-tested care fee. For more information on this topic, please refer to the Changes to Aged Care Fee’s page.
How can I determine if I am required to pay an income-tested care fee?
You can use the fee estimator to assess whether you are subject to this fee and receive an estimate of the potential amount.
If you are obligated to pay an income-tested care fee, you may be required to undergo an income assessment to ascertain the precise amount. Learn more about income assessments and determine if you need to undergo one by utilizing the income and means assessments tool.
Annual Cap Amounts
When it comes to income-tested care fees, two different annual cap amounts are applied daily in-home care. The specific cap amount that applies to you is determined by your annual earnings.
For instance, for a single person:
- If you are a part-pensioner or earn between $33,027.80 and $63,559.60 a year, your income-tested care fee is capped at $18.30 per day or $6,661.80 per year
- If your annual earnings exceed $63,559.60, your income-tested care fee is capped at $36.60 per day or $13,323.68 per year.
It is important to note that if you are a full pensioner or have an income of up to $33,027.80, you will not be required to pay an income-tested care fee.
Lifetime Cap Amount
Effective March 20, 2024, the maximum income-tested care fee that you may be required to pay in your lifetime is $79,942.44. Once you reach the lifetime cap, you will no longer be obligated to pay income-tested care fees.
For further information on annual and lifetime caps.
Additional service fees
Additional service fees refer to any extra charges that you have consented to pay for additional care and services not typically covered by your Home Care Package budget. These fees are agreed upon directly with your Home Care Package provider and should only be incurred if there are insufficient funds in your budget to cover them.
How often am I required to pay my fees
Fees for home care services are charged daily, regardless of whether services are provided on that particular day. Payment of home care fees may be requested on a bi-weekly or monthly schedule.”
How can I determine the amount of my fees?
Determining your fees is a crucial aspect of selecting the appropriate aged care services for your needs. The total amount you pay, as well as the government’s contribution, is determined by your Home Care Package level, income assessment, and the agreement you reach with your provider. It is important to carefully consider these factors to make an informed decision about your financial obligations.
I would like to request an estimate for a Home Care Package
The fee estimator: is designed to provide you with an approximate amount that you may need to contribute towards the package. This tool also outlines the inclusions to help you determine your contribution. Obtain an estimate of your home care fees using our fee estimator.
I am interested in determining my actual fees for home care services
Your specific fees can only be calculated after undergoing an income assessment and entering into a Home Care Agreement.
Services Australia and the Department of Veterans’ Affairs (DVA) are responsible for conducting income assessments for home care services. You may be required to complete an income assessment form to provide the necessary financial information for Services Australia or DVA to assess your situation. The need for completing this form will depend on whether you are currently receiving an Australian Government means-tested income support payment.
To determine if you need to fill out an Income and means assessment form, you can utilize our Income and Means Assessment tool.
If you disagree with the results of your income assessment
You have the option to request a review of the decision from Services Australia or DVA if applicable. They will provide further guidance on the necessary steps to take in order to address your concerns.
Fee Advice Letter
When you complete and submit an income assessment form prior to commencing a Home Care Package, Services Australia will issue you a fee advice letter once your assessment has been finalized. This letter will inform you whether you are required to pay an income-tested care fee, as well as the amount you will need to pay. The fee advice letter remains valid for 120 days unless there is a significant change in your circumstances.
Some individuals may not need to complete a form for income assessment if Services Australia or DVA already has their financial information on file, such as those receiving a means-tested income support payment. In such cases, Services Australia will automatically send a fee advice letter upon entering care to confirm if an income-tested care fee is applicable. If you require a fee advice letter before commencing your Home Care Package, you can contact Services Australia at 1800 227 475.
Should there be any changes in your personal or financial situation, it is important to promptly notify Services Australia (or DVA if applicable) so they can update your assessment and reissue your fee advice letter.
What should I do if I am unable to afford the fees?
If you are facing financial difficulties that prevent you from covering your home care expenses, you have the option to request financial hardship assistance.
You may be eligible to apply for financial hardship assistance to help with your basic daily fee and/or income-tested care fee, depending on your circumstances. If approved, the Australian Government may cover a portion or all of your aged care expenses.
Please note that financial hardship assistance does not apply to additional service fees.
For more information on financial hardship assistance.
How much will my services cost?
The cost of Home Care Package services varies among providers, depending on the services needed and when they are required. These charges are deducted from your Home Care Package budget.
All home care providers are required to publish their full price list online. To maximize your package funds, it is advisable to compare the services offered by different providers.
When comparing providers, consider the following three factors:
- Services: These are services subsidized by the program to help individuals remain at home as they age.
- Care management: This service involves regular assessments of your needs, goals, and preferences.
- Package management: This includes administrative activities related to managing a package.
National Summary of Median Home Care Prices
To increase transparency surrounding Home Care Package prices, the Department of Health and Aged Care regularly publishes the national median prices for common home care services, care management, and package management. This data is updated quarterly and can be accessed on the National summary of home care prices.
Am I able to obtain financial guidance?
Seeking financial advice is highly recommended before making decisions about how to pay for aged care. Services Australia offers a free Financial Information Service (FIS) to help individuals understand the financial implications of their aged care costs.
FIS officers can provide guidance on making informed financial decisions and explain how different payment methods for residential care may impact pension and aged care costs if a move to an aged care home becomes necessary.
To learn more about FIS or to schedule an appointment, call 132 300 and mention “Financial Information Service” when prompted. Additionally, for further information and assistance with financial matters, visit our financial support and advice page.