Improved payment arrangements for home care

The Australian Government (Government) is committed to improving the Home Care Program for care recipients. From 1 September 2021, changes were implemented to the way providers of Home Care Packages are paid.

Why these changes are important

These changes provide care recipients with a clearer picture of their home care package and unspent funds. Providers are now paid only for the care, services and goods they actually deliver each month to care recipients. This means that, the maximum amount of the Home Care Package funds go towards supporting older Australians to remain in their own homes for as long as possible. Any unspent funds are held by Services Australia in a home care account for each care recipient until needed.

These changes do not affect care recipients' subsidy entitlements or the total funds they have available to fund care, services and goods.

These changes implement a key recommendation of the Royal Commission into Aged Care Quality and Safety. They reinforce the focus on delivering services to meet consumers needs and choices in the Home Care Packages Program.

Home care providers currently hold  more than $1.5 billion of care recipients’ Home Care Package funds. Reducing the funds held by providers and moving the responsibility to the Government to manage these funds provides better protection of package funds and ensures they are always available to purchase the care and services needed.

Find out more

For detailed information for providers, go to the updated IPA fact sheet for providers.

For detailed information, go to the IPA fact sheet for Questions and Answers.

An updated slide deck from the Webinar on Improved Payment Arrangements – 7 May 2021 is also available. It reflects the new updated time frames and inclusions in the care recipient monthly statement.

Improved Payment Arrangements (IPA) for care recipients

This collection provides guidance materials for home care recipients on how IPA will affect them.

Improved Payment Arrangements (IPA) for home care – Subsidy estimator and unspent funds examples

The Subsidy Estimator and Unspent Funds Examples are guidance materials for home care providers on how claims will work under IPA.

We will keep care recipients and providers informed of the changes through emails and our website. We will also update providers through the provider portal and aged care sector newsletters.


Improved Payment Arrangements for Home Care contact

Contact us if you have any questions about the improved payment arrangements.

IPA.enquiries [at]

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Last updated: 
19 October 2021

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