A Complete Guide to Home Care Package Funding and Fees

Have you heard about the Australian Government programs that help older Australians remain at home independently rather than moving to facility care, and are looking for more information? Perhaps you are currently receiving support but are wondering about the upcoming changes? You’ve come to the right place for all the information regarding these.

On this page you'll find a complete guide to Home Care Packages (HCP) and the new Support at Home program, to help you gain a better understanding of what is involved.

Hireup client Frank and worker Luca pick pot plants up from a nursery.

Hireup aged care client Frank with his support worker Luka gardening together.

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Government subsidies for Home Care Packages
Home Care Packages fees
Moving to the Support at Home Program
The Support at Home Program funding structure
Help managing your Home Care Package budget

Understanding the government subsidies for Home Care Packages

The Australian Government provides a subsidy for each HCP level to contribute to the cost of care and services. These subsidies are paid directly to the approved provider that you have chosen.

The four levels are based on your or your loved one’s support needs:

Level 1 (Basic Care Needs)

Approximately $10,698 annually (daily rate of around $29.31).

Level 2 (Low Care Needs)

Approximately $18,812 annually (daily rate of approximately $51.54).

Level 3 (Intermediate Care Needs)

Approximately $40,945 annually (daily rate of around $112.18).

Level 4 (High Care Needs)

Approximately $62,075 annually (daily rate of approximately $170.07).

Fees associated with Home Care Packages

As with most things in life, there are some fees and possible additional costs involved in all of this. The important fees to be aware of are as follows.

Basic daily fee

You may be asked to pay a basic daily fee towards the cost of your or your loved one’s care. This fee is a percentage of the single basic age pension and varies based on the level of the HCP (ranging from 15.68% to 17.50%).

The daily and fortnightly rates for the basic daily fee are as follows:

Level 1: Approximately $11.77 per day, or $164.78 per fortnight.
Level 2: Approximately $12.45 per day, or $174.30 per fortnight.
Level 3: Approximately $12.80 per day, or $179.20 per fortnight.
Level 4: Approximately $13.14 per day, or $183.96 per fortnight.

Note: While providers have the option to ask care recipients to pay this fee, it is not mandatory, and some providers may choose not to charge it.

Income-tested care fee

The income-tested care fee is determined by an income assessment conducted by Services Australia. Full pensioners and those with an annual income below a certain threshold are exempt from paying this fee.

The income-tested care fee directly reduces the amount of subsidy that is contributed towards the HCP. The government contribution varies depending on the package level and is directly paid to the selected home care provider.

The maximum daily income-tested care fee for a single person is as follows:

Earning over $33,849.40 per year, the fee can be up to $18.85 per day.
Earning over $65,260.00 per year, the fee can range between $18.85 and $37.70 per day.

There are, however, annual and lifetime caps on the income-tested care fee to provide financial protection:

$6,862.18 for those in the lower income bracket
$13,724.45 for those in the higher income bracket
A lifetime cap of $82,347.13

Additional service fees

There can also be additional service fees for care and services that extend beyond what can be covered by the HCP budget. These fees are agreed upon directly between you and your aged care provider. This can be relevant if you require other specialist services not covered by the standard care plan.

These could include higher-quality versions of standard services, preferred brands of toiletries or access to paid entertainment. You can only be charged for additional services that you can actually use or benefit from.

What the aged care changes mean for you, your family, or your clients

Learn more

Starting 1 November 2025, Australia’s aged care program will be changing.

The Support at Home program will replace the current Home Care Package and Short-Term Restorative Care programs. It also introduces a new Statement of Rights to clearly set out what every older person should expect when getting support.

We're here to help you make sense of it all, so you can feel confident about what’s ahead.

Moving to the Support at Home Program

The HCP will become the Support at Home Program on 1 November 2025. Those who have a HCP today will automatically be transitioned to the new program on this date. Existing budgets will be matched to an equivalent level under the Support at Home Program, ensuring a continuation of care without the immediate need for a new assessment.

Those on the National Priority System awaiting the allocation of a HCP will also automatically transition to the Support at Home Program with equivalent funding as soon as it becomes available.

What happens to unspent funds during this change?

During the transition to the Support at Home Program, you’ll keep any unspent funds you have under your HCP. There is, however, an expectation that these unspent funds will be used before accessing new funding for Assistive Technology and Home Modifications under the Support at Home Program.

The introduction of quarterly budgets

The Support at Home Program will introduce quarterly budgets. Under this new model, the annual funding amount will be divided into four equal budgets, each covering a three-month period. If you don’t fully utilise your allocated budget within a quarter, you can carry some unspent funds to the next quarter. The maximum amount that can be carried over is either $1,000 or 10% of the quarterly budget, whichever is higher.

The Support at Home Program funding structure

The Support at Home Program will introduce eight ongoing service classification levels:

Level 1: Approximately $2,750 per quarter ($11,000 annually).
Level 2: Approximately $4,000 per quarter ($16,000 annually).
Level 3: Approximately $5,500 per quarter ($22,000 annually).
Level 4: Approximately $7,500 per quarter ($30,000 annually).
Level 5: Approximately $10,000 per quarter ($40,000 annually).
Level 6: Approximately $12,000 per quarter ($48,000 annually).
Level 7: Approximately $14,500 per quarter ($58,000 annually).
Level 8: Approximately $19,500 per quarter ($78,000 annually).

The Aged Care Assessment Team (ACAT) will determine the appropriate funding level based on your or your loved one’s needs, personalising care plans to ensure you or your family receive the care that is needed.

Short-term care pathways

In addition to the ongoing classification levels mentioned above, the Support at Home Program will also feature two short-term care pathways:

The Restorative Care Pathway

Designed to maintain and improve your independence through access to multidisciplinary allied health services. This pathway will provide funding of approximately $6,000 for up to 12 weeks, with the possibility of an extension to $12,000 in certain circumstances.

The End-of-Life Pathway

Designed to provide a higher level of funding and support for those assessed as having less than three months to live and who wish to receive care at home. This pathway will offer funding of up to $25,000 over 12 weeks, with the flexibility to use the funds over a total of 16 weeks.

Help managing your Home Care Package budget

Consumer-directed care helps you control your care planning and delivery. You’ll work with approved providers to select services based on your needs and allocated budget. While your approved provider must administer funds according to government guidelines, you will be given personalised guidance and support to make sure you make the right choices and find appropriate services.

You’ll also receive an itemised monthly statement showing available funds, expenditures, and remaining balances. These will include all the information you need (including which fees you’ve paid) to make sure you have a full overview of your plan.