What fees apply
The fees that may apply to people who started Home Care Packages before 1 July 2014 are:
View the Schedule of Fees and Charges for pre-1 July 2014 for current fee rates.
Basic daily fee
You can ask all your care recipients to pay the basic daily fee. It doesn’t matter what their income is.
How much you can 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 care recipient’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 are responsible for calculating the income tested fee. The income tested fee does not affect the care recipient’s Home Care Package subsidy.
The care subsidy reduction does not apply to people who entered care before 1 July 2014.
How much you can 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 care recipient’s other expenses, such as medicine costs, utilities and other living expenses
- whether the fee would cause them financial hardship.
What income to 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
- 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.
See full details in Division 60 of the Aged Care (Transitional Provisions) Act 1997 and section 130 of the Aged Care (Transitional Provisions) Principles 2014.
Fees for additional care and services
A care recipient can choose to pay for additional care and services if they do not have enough money in their individualised budget to support their care plan.
You can only charge additional service fees if:
- you and the person agree to the fees and services before they start
- the additional services do not include items specified in Part 2, Schedule 3 of the Quality of Care Principles 2014.
Reviewing fees
You are responsible for reviewing 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.
You may need to review your fees if your care recipient’s financial situation changes. People who entered before 1 July 2014 are not eligible for the hardship supplement. They can negotiate lower fees with you as set out in the Aged Care (Transitional Provisions) Act 1997.
Discuss the impact of any fee changes with your care recipient and update their individualised budget as needed.
Temporary leave
When a person takes temporary leave from their Home Care Package to:
- receive transition care or residential respite care, you cannot continue to charge any home care fees
- go to hospital or for any other reason, you can continue to charge home care fees.
Managing fees
Find out what you must do to correctly manage fees, including when you can charge fees and when you must refund fees.
When a person changes provider
If a care recipient spends more than 28 days outside of home care (other than on approved leave), the post-1 July 2014 fee arrangements will automatically apply when they re-enter care.
If a care recipient enters a new Home Care Agreement within 28 days, the fees from before 1 July 2014 will continue to apply unless they opt in to the post-1 July 2014 arrangements.
To opt in to the post-1 July 2014 fee arrangements, a care recipient must:
- complete and sign the Continuing Care Recipient Opting into the New Arrangements Form
- submit the completed form to their new provider before they transfer to the new service.
If a continuing care recipient intends to move into your service, you must:
- give the person the New arrangements for aged care from 1 July 2014 publication to help them decide whether to opt in
- submit the Continuing Care Recipient Opting into the New Arrangements Form with the Aged Care Entry Record Form to Services Australia if applicable.
This is not a reviewable decision, so must be done correctly.
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