Fees for people who entered Home Care Packages before 1 July 2014

The fees for Home Care Packages changed on 1 July 2014. These changes do not apply to people who entered into a Home Care Agreement before this date.

Current rates

View the Schedule of Fees and Charges (pre 1 July 2014) for current fee rates.

Fees you can charge

The fees that may apply to people who started Home Care Packages before 1 July 2014 are:

  • a basic daily fee
  • an income tested fee
  • amounts for additional care and services

Basic daily fee

You can ask everyone taking up a Home Care Package to pay the basic daily fee. It doesn’t matter what their income is.

How much can you charge?

You can charge up to the maximum basic daily fee. View the maximum basic daily fees for each package level in the Schedule of Fees and Charges (pre 1 July 2014).

When deciding whether to charge this fee or the fee amount, you must consider:

  • a person’s other expenses, such as medicine costs, utilities and other living expenses
  • whether the fee would cause them financial hardship

Income tested fee

You can charge this fee if a person’s income is more than the single age pension.

You’re responsible for calculating the income tested fee.

The income tested fee does not affect the person’s subsidy amount. The care subsidy reduction does not apply to people who entered care before 1 July 2014.

How much can you charge?

You can charge up to 50% of the difference between the person’s income and the single age pension.

When deciding whether to charge this fee or the fee amount, you must consider:

  • a person’s other expenses, such as medicine costs, utilities and other living expenses
  • whether the fee would cause them financial hardship

What income do you include?

When calculating the fee, you must use a person’s net income. This is a person’s income after income tax and the Medicare levy.

Exclude all of following:

  • the pharmaceutical allowance, rent assistance or telephone allowance
  • the pension supplement
  • the energy supplement
  • if the person receives a pension under the Veterans’ Entitlements Act 1986 (except a Service Pension) — an amount equal to 4% of the pension

Amounts for additional care and services

A person can choose to pay for additional care and services that the package would not otherwise cover. This can only happen if you and the person agree.

Review of fees

You’re responsible for reviewing home care fees periodically.

The maximum basic daily fee increases on 20 March and 20 September each year, in line with changes to the age pension.

You may need to review income tested fees when the age pension changes.

Discuss the impact of any fee changes with your care recipient and update their individual budget as needed.

Temporary leave

When a person takes leave from their Home Care Package to:

Managing fees

Find out what you must do to manage fees when a person enters and receives home care.

When a person changes provider

If a person changes provider, they can choose the fee arrangements that started on 1 July 2014 if they do not spend more than 28 days outside of care (other than on approved leave).

To make this choice, a person must:

If they do not do this, they will be treated as a continuing care recipient. The fees from before 1 July 2014 will continue to apply.

If you’re the new provider, you must:

This is not a reviewable decision and must be done correctly.

Last updated: 
22 January 2020
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