What is a Home Care Package?
A Home Care Package (HCP) is a government subsidy that helps older Australians who need support to live independently at home. The government pays a set amount to an approved provider, who coordinates the services you need — from personal care and nursing to cleaning, transport, and allied health.
Packages are available at four levels, from basic support through to high-level care. You must have an ACAT (Aged Care Assessment Team) assessment to be assigned a level. The assessment is free.
Who qualifies?
- Aged 65 years or over (or 50+ for Aboriginal and Torres Strait Islander people)
- Need help to continue living at home safely
- Must have an ACAT assessment confirming eligibility
- Must be an Australian citizen or permanent resident
HCP vs CHSP
The Commonwealth Home Support Programme (CHSP) is the entry-level home care program — it provides smaller, more targeted services (e.g., a weekly cleaner or meal delivery) without a formal package structure. A Home Care Package provides significantly more funding and more control over how it is spent.
The four package levels
| Level | Care needs | Annual subsidy | Monthly budget | Weekly hours (approx.) |
|---|---|---|---|---|
| Level 1 | Basic | $10,588 | ~$882 | 2–3 hrs/week |
| Level 2 | Low-level | $18,622 | ~$1,552 | 4–5 hrs/week |
| Level 3 | Intermediate | $40,529 | ~$3,377 | 9–10 hrs/week |
| Level 4 | High-level | $61,440 | ~$5,120 | 15–16 hrs/week |
What each level looks like in practice
- Level 1 (Basic): Light domestic assistance (1–2 hours cleaning per week), basic social support, perhaps one allied health visit per month. Suitable for people who are largely independent but need a little help.
- Level 2 (Low-level): Around 2 hours of personal care (showering assistance) and 2 hours of domestic help per week, plus transport to appointments. The most commonly assigned level.
- Level 3 (Intermediate): Daily personal care support, regular nursing visits, domestic assistance, and allied health services. For people with moderate care needs who can still live at home safely with support.
- Level 4 (High-level): Extensive daily personal care, regular nursing and clinical care, domestic support, and equipment. The highest level of home-based care available. For people with complex care needs who would otherwise need residential care.
What services are covered?
Home Care Packages can fund a wide range of services. The key categories are:
Personal care
- Showering, bathing, and personal hygiene assistance
- Dressing and grooming
- Toileting and continence support
- Mobility assistance and transfers
Nursing and clinical care
- Wound care and medication management
- Health monitoring (blood pressure, blood sugar)
- Catheter and stoma care
- Post-hospital recovery support
Domestic assistance
- Cleaning, vacuuming, and mopping
- Laundry and ironing
- Meal preparation and delivery
- Shopping assistance
Allied health and therapy
- Physiotherapy and exercise programs
- Occupational therapy and falls prevention
- Podiatry, speech therapy, dietetics
- Social work and counselling
Other services
- Transport to medical appointments and social activities
- Social support and companionship
- Equipment and assistive technology (walking frames, shower chairs, sensor alarms)
- Minor home modifications (grab rails, ramps, non-slip surfaces — typically up to $1,000–$2,000)
What does it cost?
You pay two possible fees; the government pays the rest directly to your provider.
| Fee type | Who pays | Amount |
|---|---|---|
| Basic daily fee | Everyone | $12.55/day ($4,581/yr) |
| Income-tested care fee | Higher income recipients | Up to the annual cap |
| Government subsidy | Government → provider | Depends on level (up to $61,440/yr) |
Income-tested care fee
Unlike residential aged care (which tests both income and assets), Home Care Packages apply an income test only. If your income exceeds the income-free area of $31,140/year (single), you pay 50% of the excess as an income-tested fee — subject to annual and lifetime caps.
Worked example 1: Full Age Pensioner
Income ($29,754) is below the income-free area ($31,140).
Income-tested fee: $0
Total cost: basic daily fee only = $4,581/yr ($12.55/day)
Net service budget: $18,622 − $4,581 = $14,041/yr (before provider admin fees)
Worked example 2: Self-funded retiree
Income excess: $45,000 − $31,140 = $13,860
Income-tested fee: $13,860 × 50% = $6,930/yr
Plus basic daily fee: $4,581/yr
Total out-of-pocket: $11,511/yr
Net service budget: $40,529 − $4,581 − $6,930 = $29,018/yr
Managing your package budget
Your Home Care Package operates like an account — the government credits the subsidy, and services are debited as used. Understanding how to manage this budget is key to getting the most from your package.
Unspent funds accumulate
If you do not use your full budget in a given month, the unspent funds roll over and accumulate. This can be useful for saving toward larger one-off expenses (e.g., home modifications or equipment purchases). Your provider should give you a monthly statement showing your balance.
The impact of provider fees
Provider administration and case management fees are deducted from your package budget before services are purchased. A provider charging 30% administration fees on a Level 2 package reduces your available service budget by approximately $5,587/yr:
| Before admin fees | After 30% admin fees | |
|---|---|---|
| Level 2 subsidy | $18,622 | $18,622 |
| Admin fees (30%) | — | −$5,587 |
| Less basic daily fee | −$4,581 | −$4,581 |
| Available for services | $14,041 | $8,454 |
Tips for getting the most from your package
- Compare at least 3 providers on fees and services before choosing
- Ask for a breakdown of all fees (admin, case management, care coordination) in writing
- Review your monthly statement to ensure services match what was delivered
- Use unspent funds strategically — save for larger items like home modifications
- Ask your provider about group activities which are often cheaper than individual services
Changing providers
You have the right to change your Home Care Package provider at any time. Common reasons include dissatisfaction with service quality, high fees, lack of flexibility, or simply finding a provider that better suits your needs.
How to change
- Contact My Aged Care (1800 200 422) and advise that you want to change providers
- Research and choose a new provider through the My Aged Care website
- Your current provider will transfer your unspent funds within 70 days
- Sign a new home care agreement with your chosen provider
Wait times
| Level | Typical wait |
|---|---|
| Level 1–2 | 3–6 months |
| Level 3–4 | 12–24 months |
The National Priority System
Packages are assigned based on a national priority system that considers your assessed care needs, risk of entering hospital or residential care, and how long you have been waiting. People with the most urgent needs are prioritised regardless of when they applied.
Interim packages
While waiting for your assigned level, you may be offered a lower-level package as an interim measure. Accept it — you retain your place in the queue for the higher level, and the interim package provides services in the meantime. Any unspent funds from the interim package carry over.
Support while waiting
While waiting for a Home Care Package, you may be eligible for:
- CHSP services — basic home support funded through the Commonwealth Home Support Programme
- Short-term restorative care — a time-limited program to help recover from illness or injury
- Respite care — in-home or residential respite to give your carer a break
How to apply
- Call My Aged Care on 1800 200 422 to register and request an ACAT assessment. You can also register online at myagedcare.gov.au. A family member or GP can make the initial contact on your behalf.
- Complete the ACAT assessment. An assessor will visit your home for approximately 1–2 hours. They will ask about your daily activities, health conditions, mobility, and what support you currently receive. Prepare by having a list of your medications, any medical reports, and examples of tasks you find difficult.
- Receive your approval letter with your assigned package level. If you disagree with the assessed level, you can request a review through My Aged Care or contact the Aged Care Quality and Safety Commission.
- Choose a provider from the My Aged Care find-a-provider tool. Compare fees, services, and availability before committing.
- Sign a home care agreement with your chosen provider. Read it carefully — it should detail all fees, services, and your rights. You have 14 days to consider the agreement before signing.
Timeline
| Step | Typical timeframe |
|---|---|
| Initial call to My Aged Care | Day 1 |
| ACAT assessment scheduled | 2–6 weeks |
| Assessment completed | 1–2 hours |
| Approval letter received | 2–4 weeks after assessment |
| Package assigned (Level 1–2) | 3–6 months from approval |
| Package assigned (Level 3–4) | 12–24 months from approval |
Home care vs residential care
Choosing between home care and residential care is one of the biggest decisions families face. Here is how they compare:
| Home Care Package | Residential Aged Care | |
|---|---|---|
| Government subsidy | Up to $61,440/yr (Level 4) | Varies (government funds clinical care directly) |
| Your cost (approx.) | $4,581–$15,000/yr | $30,000–$120,000/yr |
| Accommodation | You live at home | RAD/DAP ($100k–$800k+) |
| Care hours | 2–16 hrs/week | 24/7 supervision and care |
| Independence | High — you control your routine | Structured facility schedule |
| Wait time | 3–24 months | Often available within weeks |
When home care is suitable
- The person can live safely at home with support
- Care needs can be met in the available hours (up to 16/week)
- The home environment is safe and accessible (or can be modified)
- Family or informal carers can provide additional support
When residential care may be needed
- 24/7 supervision is required (advanced dementia, high falls risk)
- Complex clinical care needs exceed what can be provided at home
- The person is socially isolated and at risk without constant support
- Home care is no longer safe despite maximum package support