A Breakdown of Home Care Package Fees & Levels

Are you trying to understand the fees and levels included in Home Care Packages (HCP), but it’s getting a little confusing? We’re here to make it a lot simpler to understand these government-subsidised support packets that help you or your loved ones live independently in your own home.

The aged care landscape is undergoing significant transformation due to findings from the Royal Commission into Aged Care Quality and Safety. This is good news, as the reforms will make the program simpler to navigate, but it is still important to understand some key points.

We’ve outlined these below, along with information about the transition to the new Support at Home program, scheduled for 1 November 2025. This information will help you navigate the aged care journey and available support.

A support worker assisting a client during a meal.

Current Home Care Package levels and annual government subsidies

Right now, the HCP Program features four levels, which are based on individual care needs. They are as follows:

Level 1 (Basic Care Needs)

This level helps with day-to-day tasks and includes domestic assistance, offering an annual government subsidy of $10,698.15.

This equates to roughly 2 hours of support per week (actual support hours vary).

Level 2 (Low-Level Care Needs)

Offers more frequent support than Level 1, including additional services like medication reminders and some allied health services. This level also provides basic assistance and may include garden maintenance with an annual government subsidy of $18,812.10.

This equates to roughly 3-4 hours of support per week (actual support hours vary).

Level 3 (Intermediate Care Needs)

This level is designed for those with more complex care needs and includes nursing care with an annual government subsidy of $40,945.70.

This equates to roughly 7-9 hours of support per week (actual support hours vary).

Level 4 (High-Level Care Needs)

Provides comprehensive assistance for complex needs, including extensive personal care, significant nursing support, allied health services, specialised dementia care, and potentially daily care visits. The annual government subsidy here is $62,075.55.

This equates to roughly 10-13 hours of support per week (actual support hours vary).

Fees associated with current Home Care Packages

HCP funding is often combined with contributions from you in the form of fees. You’ll receive a HCP letter that includes a referral code, which is essential for confirming the level of care assigned and selecting a home care provider. Some of the fees that may be required can include:

Basic Daily Fee

Providers may charge this government-set fee based on a percentage of the single basic age pension, indexed biannually. As of March 2025, maximum daily rates are:

Level 1: $11.77
Level 2: $12.45
Level 3: $12.80
Level 4: $13.14

Not all providers charge this fee, so it can be handy to use as a comparison point when selecting services.

Income-Tested Care Fee

A Services Australia income assessment will determine if this fee is required and how much it will be. Full pensioners and those earning up to $33,849.40 annually, however, will not be charged it. For others, the fee varies by income:

Income $33,849.40-$65,260.00: Up to $18.85 daily
Income over $65,260.00: Up to $37.70 daily

Annual caps ($6,862.18 or $13,724.45, depending on income) and a lifetime cap ($82,347.13) do apply to help keep things under control.

Management Costs

Providers can charge for package administration (capped at 15% of package value) and care coordination (capped at 20%) fees. These fees will come out of the funds you have for direct care services. Additional service fees may apply for items outside the package scope.

Extra Services

While basic care is covered under the HCP, you have the option to purchase extra services if you need them. These additional services are offered with transparent pricing, ensuring there are no hidden costs, which enhances the overall value of the HCP.

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.

Our guide is here to help you make sense of it all, so you can feel confident about what’s ahead.

Transition to Support at Home Program and changes to levels

From 1 November 2025, the Support at Home program will replace the HCP and Short-Term Restorative Care (STRC) programs.

The main difference here will be a shift from four to eight classification levels. This more detailed program ranges from $11,000 (Level 1) to $78,000 (Level 8), distributed quarterly. Unspent funds can be rolled over within limits, so you won’t lose what you don’t use.

Current HCP recipients will transition automatically on 1 November 2025, to a budget that matches their existing HCP funding level.

For new applicants, the new levels offer a more tailored approach to funding based on your needs. The goal here is to better match your funding to your circumstances. During the transition period, you may have access to other services through programs like the Commonwealth Home Support Program. These interim packages provide additional care options, ensuring a broader range of support while awaiting formal level assignments.

Changes to fee structures

As we shift to these new levels, the "No Worse Off" principle protects you throughout the process. You will make the same or lower financial contributions under the new system. It is important to note, however, that wait times for HCPs may be affected by these reforms, potentially reducing delays for higher-level care needs.

For new entrants, fees will depend on income, assets, pension status, and service categories received. Services will be grouped into three categories:

Clinical Care (nursing, allied health): 0% participant contribution for all users, with the government covering 100%.
Independence Supports (personal care, transport, respite, assistive technology): Contributions range from 5% for full pensioners to 50% for self-funded retirees, with part pensioners varying between these amounts based on means testing.
Everyday Living Supports (cleaning, gardening, meals): Higher contributions ranging from 17.5% for full pensioners to 80% for self-funded retirees.

The reforms introduce government-set price caps beginning November 2026. During the transition year (November 2025 - November 2026), providers set their prices under increased monitoring. Future caps will cover full-service delivery costs, eliminating separate administrative fees, though providers can include care management components (up to 10% of classification budgets). A lifetime cap of $130,000 will also apply to contributions for non-clinical care services across home and residential care.

These changes aim to provide extra support to help individuals live independently at home. By receiving in-home care services, you and your loved ones can enjoy a familiar environment while receiving personalised care tailored to your needs.