July 1, 2023


What can a provider charge you for your Home Care Package?

You've been patiently waiting for your Home Care Package to be assigned, and then you receive the letter advising you that you have 56 days to choose a provider and enter into an agreement with them.

You're one step closer to knowing you'll be supported to remain living in your own home.

But the next confusing step is trying to understand what the fees or costs a provider can charge, so you can compare these fees from provider to provider and work out which organisation, or provider, to choose for your Home Care Package.

There are a few different fees with providers of Home Care Packages.

Some fees will apply to some people and some fees will not.

To try and make the fees more comparable and reduce excessive charges for recipients of packages, in January 2023, the Australian Government stipulated the maximum amount a provider can charge for their services in supporting you with your Home Care Package.

This means the provider's 'admin' fees must not exceed what the Department of Health and Aged Care has set.

Previously known as 'admin fees' and 'care coordination fees' at January 1st 2023, the new names for the fees are Care Management and Package Management.

Provider Fees

  • Care Management. The fee a provider charges your package to regularly assess your needs, goals and preferences and write your care plan.

    Care Management must comply with the Aged Care Quality Standards.

    The maximum amount a provider can charge you for Care Management is 20% of your level of package subsidy.
  • Package Management. The fee your provider can charge to establish and manage your budget, coordinate services, prepare invoices and monthly statements, submit claims to Services Australia and store and maintain records.

The maximum amount a provider can charge you for Package Management is 15% of the level
of your package.

  • Basic daily fee. A fee that some providers request and others don't. The amount is set by the Government but is at the discretion of the package provider to charge it or not.

It ranges from $10.88 to $12.14 (as at 20th March, 2023) depending on the level of home care package you are assigned and changes in March and September each year in line with pension adjustments.

Government fees:

  • Income Tested Fee. A Government stipulated fee that is outside the discretion of the Home Care Package provider. This fee is usually exempt if people are on a full aged pension and receive no other income.

This fee differs from person to person depending on their income. If you are a part self-funded or fully self-funded retiree, then you may be deemed to pay the income tested fee.

When considering the fees or costs within your Home Care Package, it is a good idea to think about the kind of support you need at home or the types of services you might like to have access to.

Some people may want domestic support and yard mowing only.
Some people may have more complex needs (and will hopefully be on a higher level of Home Care Package) and may need nursing support for wound care or choose an in-home exercise program with a physio or exercise physiologist and some people may benefit from dietician input.

Understanding the costs of these services will help you understand how much 'bang for your buck' you will receive within your Home Care Package.

Even though the Department has capped the amount a provider can charge you for Care Management and Package Management, people are still confused because providers charge different amounts for specific services.

To make it easier for people to see how much support or how many services they can get within their package, I suggest they write a list of all the things they would like the package to pay for.

They should then ask the package provider to cost this list of support and services and tell you what you can achieve and what is going to exceed your package funding.

This way you will be absolutely clear about what your needs are going to cost you, from your chosen package provider.

If you'd like to take a closer look at all the different fees for Home Care Packages, you can check out the information on this page on My Aged Care.

We'd love to hear from you

We're passionate about ensuring people understand the aged care system

Not sure what service you need?

Send us a message and we'll contact you to help you decide.