Explaining the Cost of Home Care Packages

Home Care Packages are subsidised by the Australian Government. The costs can vary depending on the level of care required and your provider. 

There are four levels of Home Care Packages. 

They range from basic care needs to high-level care needs. Each offers different amounts of funding to cover the required services.

Levels 1 and 2 tend to basic care needs, which is why they require less government funding. 

Levels 3 and 4 are for more complex care needs, so the government allocates more funds for these services.

While the government subsidy covers a significant portion of the Home Care Package costs, recipients may still be required to contribute through fees. 

This may include the basic daily fee and the income-tested care fee. 

Read more to learn about the cost of Home Care Packages.

What Is the Cost of Home Care Packages?

Home Care Packages is a government-funded program for Australian citizens. In other words, the government will cover the majority of the Home Care Package costs.

The government subsidises a certain amount for each Home Care Package Level. This is the current subsidy for each level:

1. Level 1 - $1,0271.1
2. Level 2 - $18,063.85
3. Level 3 - $39,310.5
4. Level 4 - $59,593.55

This is the government subsidy on a yearly basis. This is what you can expect on a daily and fortnightly basis:

Note that these numbers change every year. These figures are up to date as of 1 July 2024.

As you can see, the government contributes more funds for higher levels of home care.

Let's take a Level 1 package as an example. Basic care needs may involve minimal costs. This can potentially be around $3-$10 per day. This includes out-of-pocket fees for the basic daily fee plus any income-tested care fee.

High-level care needs could involve more significant daily fees and potentially higher income-tested care fees.

These funds make up your Home Care Package budget. Your budget also consists of your contribution, which we will discuss later. 

As an HCP recipient, you can use your budget to pay for your home care services. To be more precise, the government allocates your funds directly to your provider.

Each provider has their own Home Care Package costs and fees. So, how much your package will cost depends on your provider. 

Understanding Your Home Care Package Budget

Your Home Care Package budget consists of two types of contributions. The first is from the government, and the second is from you.

When you first apply for a Home Care Package, you will go through a formal assessment. This assessment tests your eligibility for a Home Care Package.

Based on your assessment, you will be assigned to one of the four Home Care Package levels. 

Based on your approved level, you will receive the government funding amount we discussed above. 

The funding goes to your chosen provider, who will divide those funds based on your full-time needs. 

Home Care Package funds are paid in the form of yearly subsidies. Your provider will divide the total amount into monthly payments to deliver the care services you need.

Any unspent funds from a Home Care Package remain with the home care provider. If nothing changes in the Home Care Agreement, those funds will roll over into the following financial year. 

All the details of monthly transactions, including unspent funds, should be listed in your monthly statement.

These funds can be used for a variety of tailored care services, including:

• Personal care
• Therapy services
• Help with household tasks and everyday activities
• Home modifications and light housekeeping
• Social activities
• Occupational therapy
• Medication management
• Respite care
• 24-hour care

Personal Contribution

It's true that Home Care Packages are funded through government support. But, as a care recipient, you're still required to cover some of the costs.

The amount you might be expected to contribute is based on:

• Your financial situation
• Your Home Care Package level
• The type and amount of care you need

Your financial situation is assessed through an income and assets test. The government subsidises the remaining amount. 

This means that applicants with higher incomes and more significant assets may have to contribute more to the cost of their Home Care Package.

That being said, the higher the level you're assigned to, the more funds you will receive from the government.

Levels 3 and 4 are for those who need intermediate care and complex care services. So, they naturally cost more. 

Levels 1 and 2 are for those with basic and low-level care needs, so they require less money.

What Fees Are You Required to Pay?

The amount you will have to pay depends on your current financial situation and personal circumstances.

Care recipients usually have to pay the following Home Care Package fees:

1. The basic daily fee
2. The income-tested fee
3. Fees for additional services

The basic daily fee is a fixed fee determined by the Australian government. It's the same for everyone, regardless of their financial situation.

The income-tested fee is also sometimes called the income-tested care fee. It's means-tested and depends on your income and assets. 

If your income is above a certain income threshold, you may need to pay an extra fee on top of the basic daily fee.

Note that you might not have to pay the income-tested care fee if you're on a full pension.

Other fees include care management fees and package management fees.

The first is associated with the coordination and management of your Home Care Package. This includes assessment, planning, coordination, and monitoring.

The latter covers the costs of managing the package on behalf of the care recipient. This includes budget management and financial reporting.

If you want to change your home care provider, you will also have to pay an exit fee. 

Some providers, like Haisey Home Care, don't charge exit fees should you choose to end your contract. 

Aside from not having to pay an exit fee, Haisey Home Care also doesn't charge a basic daily fee.

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What Haisey Home Care Offers

Compared to other providers, Haisey Home Care offers transparent costs and a low flat rate of 27%.

Our care management fees and package management fees are lower than what other service providers charge.

Take a look at our home care services price list:

• Level 1 - Care management fee - $1,746.09 per year
      Package management fee - $1,027.11 per year
• Level 2 - Care management fee - $3,070.85 per year
      Package management fee - $1,806.39 per year
• Level 3 - Care management fee -$6,682.79 per year
      Package management fee - $3,931.05 per year
• Level 4 - Care management fee -$10,130.9 per year
      Package management fee - $5,959.36 per year

Not only does Haisey Home Care offer lower costs and fees compared to other home care providers, but we also offer more hours of care per year. 

So, our clients not only pay less for our support services but also receive more hours of high-quality, personalised care.

If you want to know more about our fees, you can find all the information here.

Stay Informed About Home Care Package Costs

When you enter aged care, you'll have to pay certain costs and fees when you start receiving care services, which are covered by the Australian Government.

If you'd like to know more about the cost of Home Care Packages, you can contact My Aged Care. 

You can also reach out to Haisey Home Care. 

One of our care managers would be happy to explain the costs associated with receiving Home Care Packages.

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