The Average Cost of In-Home Care for Elderly Australians

The average cost of in-home care for elderly Australians can depend on several factors, including the HCP level, the type of care required, and their chosen provider.

Haisey Home Care
August 14, 2023
x min read

In-home care has become an increasingly popular option for those who wish to receive care and support in the comfort of their own homes. However, it's essential to understand the financial implications of these aged care services.

The average cost of in-home care for elderly Australians is influenced by several factors, including the type of care and the level of support needed.

By considering these factors, seniors and their families can have a comprehensive understanding of the different types of in-home care services and how much they cost.

If you or your loved one are planning to sign up for a Home Care Package, but you want to learn more about the true cost of these aged care services, this article is for you.

How Much Does Home Care Cost for Seniors?

Before we discuss how much in-home care costs, it's important to mention that these aged care programs are funded by the Australian Government.

To be more precise, your home care budget is divided into two types of contributions: government funding and fees and costs you have to cover. 

The exact government subsidy will depend on the Home Care Package level as well as the personal circumstances of the care recipient.

This is the maximum amount the Australian Government subsidises for each Home Care Package level on a yearly basis:

  1. Level 1 - $10,271.1
  2. Level 2 - $18,063.85
  3. Level 3 - $39,310.5
  4. Level 4 - $59,593.55

The federal government will pay these funds directly to the in-home care provider, not the care recipient. Your chosen provider is responsible for dividing the total yearly allocation into monthly payments, which are used to cover your in-home care services.

Keep in mind that elderly Australians can't receive government funding if they want to apply for private home care organisations.

When it comes to personal contribution, care recipients are required to pay certain fees, including:

  1. The basic daily fee
  2. The income-tested care fee
  3. Additional fees

The basic daily fee is determined by the government, and it's usually the same for all care recipients, regardless of their personal circumstances. 

The income-tested fee, on the other hand, depends on your financial situation, the level of required care, and your chosen service provider.

The income-tested care fee will be determined by the Aged Care Assessment Team (ACAT).

Factors That Affect the Cost of In-Home Care

Factors that can influence the cost of in-home care for elderly Australians include:

  • The level of care required
  • The geographical location
  • The specific services needed
  • The experience and qualifications of the caregivers

The average cost of in-home care for elderly individuals can vary greatly depending on the level of care needed.

For example, individuals who require minimal assistance with daily activities such as meal preparation and light housekeeping may incur lower costs compared to those who require more intensive care, such as assistance with bathing, dressing, and medication management.

The geographical location can also impact the cost of in-home care, as certain areas may have higher living expenses and, thus, higher care costs.

Finally, the specific services needed, such as specialised care for dementia patients, can also contribute to the overall cost.

Since there are so many factors that can impact the full cost, determining the average cost of in-home care for elderly Australians can be challenging.

Types of In-Home Care Services Available

The government covers two types of aged care programs: Home Care Packages and the Commonwealth Home Support Program (CHSP).

Home Care Packages are government-funded programs intended for elderly Australians who need help completing everyday tasks due to their age or health conditions.

Home Care Package services usually include the following:

  • Personal care
  • Meal preparation
  • Medication reminders
  • Companionship care
  • Home modifications
  • Light housekeeping
  • Help with grocery shopping
  • Occupational therapy
  • Social activities
  • Allied health services

CHSP services, on the other hand, provide elderly citizens with entry-level support and are better suited for those with short-term needs.

Both of these aged care programs are designed to make life easier for older people so they won't have to move to nursing homes.

Elderly individuals also have the option to apply for private home care services, but those types of services aren't covered by the government.

Budgeting and Planning for In-Home Care Costs

Before you start receiving care, you should take the time to figure out how you will budget and plan for possible expenses tied to in-home care.

A key aspect in planning and budgeting for in-home care services is evaluating and comparing the financial implications of different providers, considering factors such as service packages, hourly rates, and potential additional fees.

It's important to thoroughly research and gather information from various providers to ensure that the chosen service is not only affordable but also meets the specific needs of the elderly individual.

Comparing service packages offered by different providers can help determine the level of care and support provided, as well as any additional services that may be included.

The hourly rate should also be taken into consideration, as they can vary significantly between providers. They can also depend on the time of the week. For instance, the hourly rate is usually higher for weekends and holidays.

You should also ask about any potential additional fees, such as transportation costs or charges for specialised care. Some providers charge an exit fee if you wish to work with another approved provider.

Researching and Comparing In-Home Care Providers

When researching and comparing in-home care providers, it's important to consider the following:

  • The range of services offered
  • The qualifications and experience of the caregivers
  • The reputation and reviews of the providers

The range of aged care services offered by the provider should align with the specific care needs of the elderly individual, whether it is assistance with daily activities, medication management, or specialised care for conditions such as dementia or Parkinson's disease.

It's crucial to assess the qualifications and experience of the caregivers to ensure they have the necessary skills and knowledge to provide high-quality care. This can include checking their certifications, training, and previous experience in the field.

Researching the reputation and reviews of the providers can provide valuable insights into the quality of care they offer. Reading feedback from other clients can help to estimate the provider's reliability, professionalism, and overall satisfaction.

Choosing the right home care provider can impact the life of the care recipient, which is why you should take your time to do research and make a well-informed decision.

Reach out to Haisey Home Care

Haisey Home Care is a dedicated care provider that offers services in Sydney and Melbourne. Our pricing scheme is entirely transparent, and we offer a low flat rate of 27%. Unlike other home care providers, Haisey Home Care doesn't charge a daily fee, exit fee, or any hidden fees.

We strive to provide older people and people recovering from injury or surgery with the support they need in the comfort of their own home.

Although it's hard to determine the true cost of home care services, you can reach out to one of our care managers, and they will explain how your home care budget works once you start receiving services.

You or your loved one also have the option to book a free in-home consultation if you're interested in working with Haisey Home Care.