Important changes to your Home Care Package budget

The Australian Government is funding a 15% increase to aged care worker wages from 1 July 2023. If you receive a Home Care Package, this will mean an increase to your package budget to ensure your services (including hours of service) are not impacted.

The following article outlines:

• the changes you can expect to your Home Care Package budget
• how the changes will impact you
• where to go for more information.

What are the changes to your Home Care Package budget?

Home Care Package budgets are made up of:

• The Australian Government’s contribution, known as the subsidy.
• Your contribution, which is the fees you may be asked to pay, including:
  • a basic daily fee
  • an income tested care fee (an additional amount that some people pay based on their income assessment)
  • any additional fees you agree to.

From 1 July, the Australian Government subsidy will increase by 11.9%. This increase will allow for the regular indexation update and the cost of wage increases.

Why is the increase 11.9% and not 15%?

You may notice the 11.9% increase in your Home Care Package is less than the 15% wage increase.  This is because some people use their Home Care Package to access goods, equipment, home modifications and allied health services – which are not impacted by the wage increase.

What is the dollar impact of 11.9% increase?

The following table shows you the dollar impact of the 11.9% increase on the current daily government subsidy rates.

How will these changes impact you?

The costs of your current services may increase

For aged care workers to get their pay increase, your provider will likely need to increase the cost of some care and services. This includes nursing, personal care, in-home respite and cleaning.

However, any additional costs should be covered by the increase in your Home Care Package budget to ensure you continue to receive the same level of care and services.

You will receive information from your provider

If your prices are changing, your provider will be in touch before the 1 July 2023 to confirm:

• why the prices need to change
• what those prices include
• when the new prices will start.

There will be updates to your Home Care Agreement 

Before you began receiving your current Home Care Package services your provider would have set up a Home Care Agreement with you. 

If your provider plans to change what they charge you, they must update this Home Care Agreement. Your provider has legal responsibilities to discuss any changes with you and seek your agreement before putting the changes in place.

Where to go for more information?

Everyone with a Home Care Package will receive a letter from the Minister for Aged Care, The Hon Anika Wells MP, in the coming weeks. The letter will explain these changes and provide additional information and resources to support you. You can read a copy of this letter on the Department of Health and Aged Care’s website.

For more information, you can contact:

• Your provider
  If you’d like more information on potential price increases to your current services, it’s a good idea to speak to your provider in the first instance.
   
• Older Persons Advocacy Network (OPAN)
  For information about your about your rights, and support to talk to your provider, contact OPAN by calling 1800 700 600 (available 8am to 8pm Monday to Friday, and 10am to 4pm Saturday).
   
• The Aged Care Quality and Safety Commission(The Commission)
  If you feel uncomfortable talking to your provider about your concerns, or you have already tried without an acceptable outcome, you can contact the Commission on 1800 951 822 (available 9:00 am to 5:00 pm Monday to Friday).
   
• My Aged Care
  For information about your current services or further advice on the increases to your Home Care Package budget, you can call My Aged Care on 1800 200 422 (Freecall) (available 8am to 8pm Monday to Friday, and 10am to 2pm Saturday)

You will also find a fact sheet with further information about the changes on the Department of Health and Aged Care’s website.