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    1. BT Academy
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    3. Retirement
    BT Academy Strategies & technical resources Retirement

    Understanding home care package fees

    20 Mar 2025
    Technical resource

    The government subsidises a range of Home Care Packages. However, even with subsidies there may be fees payable by the care recipient.

    Home care

    Acknowledging the preference for older Australians to remain in the family home, the government subsidises a range of Home Care Packages for those who are eligible for residential aged care, but prefer to remain at home.

    Eligibility for these packages is assessed by the Aged Care Assessment Team (ACAT) or the Aged Care Assessment Service (ACAS) in Victoria. The range of services provided under a Home Care Package depends on the level of care required (as assessed by ACAT or ACAS). These include care services, support services, clinical services and other services to support a person living at home.

    There are four levels of home care services:

    • Home Care Level 1 to support people with basic care needs

    • Home Care level 2 to support people with low level care needs

    • Home Care Level 3 to support people with intermediate care needs

    • Home Care Level 4 to support people with high care needs

    Home care payments

    Basic daily feeFee payable by all recipients
    Home Care - Level 417.5% of single daily age pension rate ($13.14 daily)
    Home Care - Level 317.05% of single daily age pension rate ($12.80 daily)
    Home Care - Level 216.58% of single daily age pension rate ($12.45 daily)
    Home Care - Level 115.68% of single daily age pension rate ($11.77 daily)

     

    Home care feeIncome-tested daily fee
    Persons receiving full age pensionNot payable
    Part pensionersCapped at $6,862.18 per annum
    Self-funded retireesCapped at $13,724.45 per annum

    Basic daily fee

    Recipients pay a basic daily fee, which is determined by the level of care they need. For example, if they have high care needs (Level 4) they will need to pay 17.5 per cent of the single basic age pension rate. This fee increases on 20 March and 20 September each year in line with changes to the rate of Age Pension. The fee applies to each person receiving a Home Care Package, even if they are part of a couple.

    Daily home care fee

    Recipients may also have to pay a daily home care fee, which is determined by an income means test, similar to one that applies to residents of aged care homes. The income covered by this means test is based on the client’s total assessable income, which is defined as Centrelink/DVA pension income (net of the minimum pension supplement and clean energy supplement) plus ordinary income. The client’s ordinary income is assessed the same way as under the Centrelink income test.

    The daily home care fee is calculated at the rate of 50 per cent of income above certain income thresholds, with annual caps limiting the maximum amount that can be charged. You can only be asked to pay an income-tested care fee if you have a yearly income above the below thresholds.

    RecipientThreshold
    Individual person$33,849.40
    Member of a couple but now separated due to illness (individual income)$33,173.40
    Member of a couple living together (combined income)$26,197.60

    Full pensioners will not have to pay an income-tested home care fee. For part pensioners, income-tested fees are capped at $6,862.18 per annum. Self-funded retirees pay a fee of up to $13,724.45 per annum depending on their level of income. Under the living longer aged care reform measures, there is a lifetime cap of $82,347.13 on health care fees, which applies irrespective of whether the fees are paid for home care or care provided in an aged care residential facility.

    Home care fee estimator

    The calculator on the My Aged Care Website provides an estimate of the income-tested fee payable by an individual for a Home Care Package.

    Home support

    Whilst Home Care Packages are only available to older Australians assessed by ACAT or ACAS as requiring a certain level of support, there are a number of other services available to all older Australians in general.

    Providers of these services are subsidised by the government under its Home and Community Care (HACC) program and can range from large organisations delivering multiple services over a wide area, to local community groups that might only supply one service.

    Services include meal preparation and delivery, community transport and domestic assistance such as house cleaning and garden maintenance. Each service provider has its own policy on fees, however in general, most only require a small contribution, depending on the individual’s situation.

    The 'Find a service' filter on the My Aged Care website lists service providers by location and types of services provided.

    More Information

    ServicePhone numberWebsite
    My Aged Care1800 200 422www.myagedcare.gov.au
    Department of Human Services132 300www.servicesaustralia.gov.au
    The Department of Health1800 020 103www.health.gov.au


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    article on aged care means testing

    Your guide to the first aged care means test

    The aged care means test is based on a person’s income and assets. It applies when entering residential aged care.
    Technical resource
    social security benefits

    Social security benefits and their eligibility criteria

    There are many social security benefits with differing and complex eligibility criteria. This guide looks at some of the main payments and concession cards.
    Social security
    SMSF tips

    SMSF advice tips, beyond having a minimum super balance

    Half a million dollars was once considered the minimum balance threshold that applied when deciding whether an SMSF is suitable for a client. According to ASIC’s previous guidance, an SMSF would only be suitable if the client’s super balance was $500,000 or above.
    Ar­ti­cle

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