What are the costs of your Home Care Package?

From July 1, 2023, the Australian government is increasing wages for aged care workers by 15 percent. To ensure home care package recipients continue to get the same services and hours of support they need, the government is increasing increasing Home Care Packages by 11.9 percent, effective July 1, 2023.

Due to the increase in wages, it is expected that providers will also need to increase the costs of support and services such as nursing, personal care, in-home respite and cleaning, as mentioned in a letter by Minister for Aged Care Anika Wells. The increased prices will be covered by the increased amount in the recipient’s package funds.

Home care packages are provided as an annual budget and are administered by a home care package provider who manages the funds on the person’s behalf. Find out more about home care packages and eligibility requirements for a home care package.

It is important to understand the costs of your home care package before you choose your home care provider, so that you can make the right decision regarding your support and care management needs.

When you receive a home care package, you have a budget to pay for the support services you need. The budget depends on level of care you need, which is determined by your home care package level.

What makes up your home care package budget?

Your home care package budget is comprised of several elements:

• The Australian government’s contribution – This can include supplements (see section below) for specific care needs for eligible recipients
• Basic daily fees – Everyone who receives a package has to pay these.
• Income-tested care fees – People who earn income over a certain amount are required to pay income-tested care fees.
• Sums for additional care and services – These are payable by the individual if they require additional services that the package funding would not otherwise cover.

You will need to enlist the services of a Home Care Package provider who will manage your HCP funds (both government funding and any supplemental funds you add) and pay expenses on your behalf.

Mable partners with HomeMade, a provider that offers self-management, but you can choose a service providers for yourself if you prefer. Each service provider charges a different amount for its services and care management. To get the most out of your funding, you should compare home care providers and consider three things: services, care management and package management.

What are funding supplements?

Depending on the type and extent of care you require, the government may provide further funding supplements for particular services, such as the following:

• Viability supplement – If you live in a rural or remote area.
• Enteral feeding supplement – If you depend on ongoing enteral feeding
• Dementia and cognition supplement – This is for people who experience moderate to severe cognitive impairment
• Veterans’ supplement – Applicable for veterans who experience cognitive issues related to their military service
• Oxygen supplement – If you have an ongoing medical condition that requires oxygen.

Speak to your package provider to discuss whether you are eligible to receive any of these funding supplements.

What are the home care package levels?

There are four home care package levels:

Level 1: Basic care needs. A Level 1 package provides an annual subsidy of about $10,272.14.

Level 2: Low care needs. A Level 2 home care package provides an annual subsidy of about $18,069.16.

Level 3: Intermediate care needs. A Level 3 home care package provides an annual subsidy of about $39,320.03.

Level 4: High care needs. A Level 4 home care package provides an annual subsidy of about $59,607.

Every person’s needs are assessed through the ACAT assessment, so that they receive the most appropriate level of home care package. Find out in detail about home care packages levels.

What does the government contribute towards home care packages?

How much are the different Home Care Package levels? This depends on the level for which you have been approved, as per information provided on the My Aged Care website. As of 1 July 2023:

The government contribution changes every 1st July. The figures above are current as at 1st July 2023.

What do I have to pay towards the costs of my home care package?

Home care package pricing is not the same for every person, and not everyone has to pay all of the fees outlined below. Your financial situation and the home care provider you choose will be taken into consideration.

Home care costs and fees are therefore customised to each individual. This is based not only on your care plan and care level needs, but other factors as detailed below.

Basic daily fee

What is the basic daily fee for a Home Care Package? Well, this per day fee – payable by you – gets added to the government subsidy to boost the funds available in your HCP budget. Not all aged care service providers will ask you to pay the basic daily fee but it will mean you have less funds in your budget to pay for the services you need. It’s important that when deciding on a provider, you are satisfied with whether you pay or don’t pay the basic daily fee.

The above figures were current on the My Aged Care website as at September 2022. The basic daily fee figure changes each March and September, to coincide with changes to the age pension.

Income-tested care fee

An income assessment will be carried out on your financial situation to determine whether, and how much, you will be required to pay. 

• Full pensioners and people with an income up to $30,204.20 do not pay an income-tested care fee.
• You could pay up to $16.79 per day, if you:
  • are single earning over $30,204.20;
  • are a member of a couple living together earning over $23,413.00; or
  • are a member of a couple living apart due to illness earning over $29,632.20.
• You could pay up to $16.79 – $33.59 per day, if you:
  • are single, earning over $58,318.00;
  • are a member of a couple living together earning over $44,605.60; or
  • are a member of a couple living apart due to illness earning over $57,746.00.

These amounts change with indexation on 20 March and 20 September every year and are up to date as at 20 September 2022.

For instance, full pensioners and those who earn up to $30,204.20 per year are not required to pay the income-tested care fee. If your financial situation changes, the income-tested care fee may also change accordingly. Annual and lifetime caps apply to this fee so once you reach your cap amount, you cannot be asked to pay more in income-tested care fees.

Information above has been sourced from the MyAgedCare.

Additional service fees

You may require additional services that are not covered by your home care package budget. Additional service fees should only apply if your budget doesn’t have enough funds to cover them. Speak with your home care provider about any additional needs you have. Your provider will be able to give you all the information you need about home care package fees and charges, so don’t hesitate to ask.

Use Mable to self-manage your home care package

Self-managing your home care package puts you in control of the services you receive, who provides them, and when. You can also negotiate how much you pay independent support workers you book via Mable. Support workers on Mable offer a range of services, from social support and personal care to transport support and nursing care.

By booking and managing support through Mable:

• You have choice and control over who supports you, when and where they support you, and how much you pay for the support
• You’re safeguarded by Mable’s verification and the high-level suite of insurances arranged by Mable on behalf of support workers.

We hope this guide to home care package costs was useful. If you’d like to get more out of your home care package funding, sign up on Mable to start self-managing your home care package today.