Does everyone have to complete an income assessment for a Home Care Package?
No. You should use the income and means assessment tool to find out if you need to.
Your contribution could be made up of the following fees:
Being eligible for a Home Care Package means that the government will subsidise the cost of your care. This makes the help you need much more affordable.
The total amount of a Home Care Package is made up of:
- the Australian Government contribution (the subsidy), and
- your contribution (the fees you may be asked to pay).
Together, these funds cover your care services as well as the package management costs from your provider to organise and manage your package of care services.
How much does the government contribute?
The Australian Government pays a different subsidy amount for each level of Home Care Package. The government subsidy for each package level is as follows:
| Home Care Package level | Approximate yearly government contribution |
|---|---|
| Level 1 | $9,000 |
| Level 2 | $15,750 |
| Level 3 | $34,250 |
| Level 4 | $52,000 |
* The government contribution increases each year. These figures are rounded.
The government contribution is paid directly to the home care provider you choose. You work in partnership with the provider to determine the care and services required, within the package budget. The funds won’t affect your pension because they don’t count as income.
Read more about further funding supplements your providers may be able to access.
What fees might I have to pay?
An amount that everyone can be asked to pay.
An additional amount that some people pay if their income is over the maximum income for a full pensioner.
Any other amount you have agreed to pay for additional care and services that wouldn’t otherwise be covered by your Home Care Package.
What is the basic daily fee?
The basic daily fee is set by the government at a percentage of the single basic age pension. This fee varies depending on your Home Care Package level (see table below for details).
The basic daily fee is added to the government subsidy to increase the funds available to you in your Home Care Package budget. Read more about Home Care Package budgets and how they are set up and managed.
The basic daily fee changes in March and September each year in line with the age pension.
From 20 September 2020, the basic daily fee by Home Care Package level will be:
| Package level |
Per cent of the single |
Daily fee | Fortnightly fee |
|---|---|---|---|
| Level 1 | 15.68 | $9.63 | $134.82 |
| Level 2 | 16.58 | $10.19 | $142.66 |
| Level 3 | 17.05 | $10.48 | $146.72 |
| Level 4 | 17.50 | $10.75 | $150.50 |
Providers can ask you to pay a basic daily fee. Use the Find a provider tool to see if your chosen provider will collect this fee.
What is the income-tested care fee?
The income-tested care fee is an extra contribution that some people pay, as determined through an income assessment. This fee is different for everyone. It’s based on individual income including your pension. However, full pensioners do not pay an income-tested care fee.
You could pay up to $15.43 per day, if you:
- Are single earning over $27,840.80
- Are a member of a couple living together earning over $21,606.00
- Are a member of a couple living apart due to illness earning over $27,320.80
You could pay between $15.43 - $30.86 if you:
- Are single earning over $53,731.60
- Are a member of a couple living together earning over $41,121.60
- Are a member of a couple living apart due to illness earning over $53,211.60
Home care fee estimator
To get an estimate of what your home care fees are, use our home care fee estimator.
Annual and lifetime caps
There are annual and lifetime caps for the income-tested care fee.
The annual cap is different depending on what you earn in a year. For example, for a single person as at 20 September 2020:
- If you are a full pensioner or have an income up to $28,087.41, you won’t have to pay an income-tested care fee.
- If you are a part pensioner or if you earn between $27,840.80 and $53,731.60 a year, your income-tested care fee is capped at $5,617.47 a year.
- If you earn more than $53,731.60 a year, your income-tested care fee is capped at $11,234.96 a year.
There is a lifetime cap of $67,409.85 as at 20 September 2020. After you reach this figure you will no longer have to pay income-tested care fees.
Read more on annual and lifetime caps.
How often do I pay my fees?
The basic daily fee and the income-tested care fee are paid for every single day that package funds are assigned to you. It doesn’t matter whether you receive a service on that day or not. You may be asked to pay your home care fees on a fortnightly or monthly basis.
What will my services cost?
Each Home Care Package service provider charges a different amount for their services and care management. How much they charge depends on the services you need, and the prices they have set.
Service providers must list their costs online. You can use the Find a provider tool to compare costs across providers, to ensure you get the most value. You may be able to negotiate a lower cost. Read more about this on our Connecting with Home Care Package providers page.
How do I work out my fees?
You can get an estimate of your fees using our home care fee estimator. For the exact fee advice you’ll need an income assessment.
Estimate your fees
To estimate your basic daily fee and income-tested care fee, use our home care fee estimator. This can give you an idea of what you may be asked to pay, and help you plan ahead.
Find out your exact fees
To find out exactly what you may be asked to pay, you will either need to have an income assessment, or request a pre-commencement letter for home care from Services Australia.
Who has to have an income assessment?
If you don’t receive means-tested income support, you’ll need to provide information to Services Australia for an income assessment. They will then work out what your income-tested care fee will be and provide you with a letter outlining the amount.
Find out more about this on our Income and means assessments page.
Who can ask for a pre-commencement letter?
If you already receive a means-tested income support payment, such as the age pension (full or part), disability support pension or service pension, and haven’t already taken up a Home Care Package, call Services Australia on 1800 227 475 to request a pre-commencement letter for home care. Services Australia will already have enough information to calculate the maximum fees payable.
A pre-commencement letter is valid for 120 days, unless there is a significant change in your circumstances. If there is a change, you’ll need to notify Services Australia (or the Department of Veterans’ Affairs if relevant) who will reissue the pre-commencement letter.
What if I am already receiving a Home Care Package?
If Services Australia have enough information about you to calculate your fees, they will send you a fee advice letter. This letter will tell you what your home care fees are. If they do not have enough information about you, they will send you a letter asking that you complete an income assessment.
What if I disagree with the results of my income assessment?
If you don’t think your income assessment is correct, you can ask Services Australia (or DVA if relevant) to review its decision. The contact details to request a review will be included in your fee advice letter from Services Australia.
What if I can’t afford the fees?
If you can’t afford your fees, don’t worry. You can still get help. Financial hardship assistance is available for those in genuine financial hardship. It offers an extra helping hand to the most vulnerable.
Depending on your situation, you may apply for financial hardship assistance with:
- basic daily fee, and/or
- income-tested care fee.
With financial hardship assistance the Australian Government will pay some or all of your aged care costs.
Read more on our financial hardship assistance page.
Can I seek financial advice?
Yes, you can. In fact, it is recommended that you seek independent financial advice before deciding how to pay for your aged care.
Services Australia’s Financial Information Service (FIS) is a free service available to everyone. FIS officers can show you how to make informed financial decisions and help you to understand the financial implications of your aged care costs. They can also help you understand how different payment methods for residential care may affect your pension and aged care costs if you ever need to move into an aged care home.
To find out more about FIS, or to make an appointment, call 132 300 and say “Financial Information Service” when prompted.
For more information and guidance on financial matters, you can also visit our financial support and advice page.
Are there any other funds that help me?
Home care providers may be able to access further funding supplements – to ensure you receive the care you need.
These include:
- Dementia and cognition supplement
- Oxygen supplement for people with an ongoing medical need for oxygen
- Enteral feeding supplement for people who need enteral feeding on an ongoing basis
- Veterans’ supplement
- Viability supplement for those in rural and remote areas.
If you think you may be eligible, ask your provider about eligibility requirements.
Home Care Package fees if you entered care on or before 30 June 2014
People who entered into a Home Care Agreement on or before 30 June 2014 will have their fees determined differently to those who commence a Home Care Package from 1 July 2014 onward. For more information, see our aged care costs pre-1 July 2014 page.
What else do people ask at this step?
Can I self-manage my Home Care Package?
Yes, some providers will let you manage your own Home Care Package which can help you save money on fees. However, if you choose to do this, there is more work involved for you, so it’s best to make sure it’s the right option for you.