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What is Home Care Package?
A Home Care Package (HCP) is government funding designed to help older Australians (65+) receive personalised care and support while continuing to live safely and comfortably at home. With flexible services tailored to your needs, an HCP offers more than just assistance - it's about maintaining your goal & well-being.
Benefits of Home Care Package (HCP)
With a Home Care Package, you get government-funded support designed just for you—helping you stay independent, comfortable, and safe in your own home. Whether you need assistance with daily tasks, personal care, transport, or nursing support, your package is flexible and tailored to your needs. Plus, you’re in control! You choose the services that work best for you so you can keep living life on your terms, with peace of mind for you and your loved ones.
With a Home Care Package (HCP), you choose how your funds are spent in partnership with an approved Home Care Provider. Compared to the Commonwealth Home Support Programme (CHSP), HCPs offer more significant funding and comprehensive services, ensuring you get the support you need to live safely at home.
Home Care Packages have four levels, each providing a different amount of funding to cover essential services like personal care, household assistance, transport, nursing, and more. Your provider will carefully coordinate and manage your services, so you don’t have to worry about handling the finances—unless you prefer a self-managed option, giving you even greater flexibility and control.
Four levels of Home Care Package (HCP)
With a Home Care Package, you get government-funded support designed just for you—helping you stay independent, comfortable, and safe in your own home. Whether you need assistance with daily tasks, personal care, transport, or nursing support, your package is flexible and tailored to your needs. Plus, you’re in control! You choose the services that work best for you so you can keep living life on your terms, with peace of mind for you and your loved ones.
With a Home Care Package (HCP), you choose how your funds are spent in partnership with an approved Home Care Provider. Compared to the Commonwealth Home Support Programme (CHSP), HCPs offer more significant funding and comprehensive services, ensuring you get the support you need to live safely at home.
Home Care Packages have four levels, each providing a different amount of funding to cover essential services like personal care, household assistance, transport, nursing, and more. Your provider will carefully coordinate and manage your services, so you don’t have to worry about handling the finances—unless you prefer a self-managed option, giving you even greater flexibility and control.
How Home Care Package Funding Works: Understanding the Financial Structure
Home Care Package funding is designed to help you receive the care you need at home, with financial support from the Australian Government. The Government provides a subsidy for each level of Home Care Package, with the amount varying depending on the level of care you require. Additionally, supplements may be available to cover specific needs, such as dementia care or allied health services. These subsidies and supplements are paid directly to the Home Care Provider you choose, who then uses them to deliver your care services.
The total funding for your Home Care Package is made up of two key components:
1. Government Subsidies and Supplements – These are the amounts paid by the Australian Government to cover the bulk of your care costs, based on your chosen level of care and any additional needs.
2. Your Personal Contribution – You may also be required to pay fees toward your Home Care Package. These include:
- Income-Tested Care Fee - This fee is based on your income and helps contribute to the cost of your care.
- Basic Daily Fee - A standard fee that all Home Care Package recipients may be asked to pay, which helps cover administrative and operational costs.
Your Home Care Provider will help you understand and manage these fees, ensuring the funding process is straightforward and that you receive the services and support you need to stay comfortable and independent at home.
Income-Tested Fee
The Income-Tested Care Fee is an extra amount you might need to pay for your Home Care Package, depending on your income assessment by Service Australia. The fee differs for everyone because it’s based on your total income, including your pension and other earnings.
You won’t have to pay this fee if you’re a full pensioner or your income is $33,849.40 or less yearly. You may need to contribute if you earn more, but there are caps to ensure it stays affordable. Service Australia will let you know exactly how much you need to pay, helping to make sure funding is fair and sustainable for everyone.
Why do I have to pay an Income Tested Fee?
The government helps cover the cost of Home Care, but to keep the system fair and sustainable, those who can afford to contribute are asked to do so. This means you may need to pay an Income-Tested Care Fee, depending on your income.
The good news? These fees are capped so that you won’t pay endlessly. As of 20 September 2024, the most you’ll ever pay over your lifetime is $79,942.44—once you reach this cap, you won’t have to pay any more. These limits make it easier to plan for your care while keeping costs manageable.
How much do I have to pay?
The Income-Tested Care Fee varies for each person based on how much income you receive. You may not have to pay anything if you’re on a lower income. If you earn more, you may need to contribute, but there are limits in place to keep costs manageable.
To ensure fees stay fair and affordable, the government has set daily, annual, and lifetime caps on how much you can be asked to pay. Once you reach these caps, you won’t have to pay any more. Below are the current caps for different income levels as of September 2024.
If you’re unsure how this applies to you, don’t worry - Service Australia will assess your income and let you know exactly how much (if anything) you’ll need to contribute. We’re also here to help, so feel free to ask any questions.
Low - Income Bracket
You’re in the Low-Income Bracket. If you’re an older Australian with a low income, you won’t be required to pay an Income-Tested Care Fee. You qualify for this exemption if your income falls within the following ranges:
- Single - Earning $33,027.80 or less per year.
- Part of a couple (living apart due to illness) - Combined income of $32,351.80 or less per year.
- Part of a couple (living together) - Combined income of $25,576.20 or less per year.
Middle-Income Bracket
If your income falls within the following ranges, you may need to pay an Income-Tested Care Fee of up to $18.30 per day or $6,661.80 per year:
- Single - Earning between $33,027.80 - $63,559.60 per year.
- Part of a couple (living apart due to illness) - Combined income between $32,351.80 - $62,883.60 per year.
- Part of a couple (living together) - Combined income between $25,576.20 - $48,588.80 per year.
If you fall within this bracket, your contribution will be calculated based on your income, but the fee is capped to keep it affordable.
Higher-Income Bracket
If your income is above the following threshold, you may need to pay an Income-Tested Fee of up to $36.60 per day or $13,323.68 per year:
- Single - Earning over $13,323.68 per year
- Part of a couple (living apart due to illness) - Combined income over $62,883.60 per year
- Part of a couple (living together) - combined income over $48,588.80 per year.
There is a lifetime cap of $79,942.44, meaning once you reach this limit, you won’t have to pay any more (as of September 2024). The best part? This cap also applies if you move into an Aged Care Home - the government will count what you’ve already paid towards your Home Care Package, reducing future costs.
How is the Income-Tested Fee Worked Out?
Once you submit your income test form, Service Australia will evaluate your financial information to calculate the amount you must pay for your home care package. After determining your fee, they'll notify you and your care provider (if you already have one).
Your Income-Tested Fee will then be deducted from the government's total subsidy for your Home Care Package, which helps reduce the amount you pay directly while ensuring your care is still affordable.
What Income Will Be Assessed?
When Service Australia assesses your income, they consider the amount you have left after paying income tax and the Medicare levy. Certain payments are not included in the income assessment, such as any pharmaceutical allowance, rent assistance, or telephone allowance.
The pension supplement and the Clean Energy Supplement are also excluded. Additionally, for those receiving a pension under the Veterans' Entitlements Act 1986, an amount equal to 4% of the pension is not counted as income. These exemptions ensure that only your income determines your Home Care Package contribution.
What If My Income Changes?
If your income changes, your Income-Tested Fee will be adjusted accordingly. Your income is reviewed twice a year, in line with indexation, which means your fee amount may change based on any increase or decrease in your income. If your income changes significantly and you cannot wait for the scheduled review, you can request an earlier review by submitting a new Income-Tested Fee Assessment Form. This ensures your fee is always based on your most up-to-date financial situation.
Navigate Your Aged Care Funding
With Aged Care At-Home Link, we simplify the process of exploring your Home Care Package and CHSP funding options.