About the Home Care Package subsidy
We pay a government subsidy (known as the Home Care Package subsidy) on behalf of each care recipient to cover most of the cost of Home Care Packages for:
View the daily rates in the Schedule of Subsidies and Supplements.
Calculating the subsidy
To work out the total daily amount we pay into each care recipient’s home care account, we:
- start with the basic subsidy – the rate depends on the package level; it increases for higher levels
- add any primary supplements – provides extra funding for specific care needs
- subtract any reductions – income tested care fee and applicable compensation payments
- add any other supplements – hardship and viability supplement, where eligible.
We add up daily rates to get monthly rates.
You must submit a monthly claim form to Services Australia.
You must itemise the separate payments above in your care recipients’ monthly statements to clarify the monthly subsidy and supplement amounts paid into their home care account.
How we pay the subsidy
As of September 2021, under the Improved Payment Arrangements for Home Care Packages:
- we pay the monthly subsidy amount into each care recipient’s home care account, which Services Australia creates and holds
- providers are paid in arrears for care management, package management and services delivered based on your monthly claim to Services Australia.
Refer to our Improved Payment Arrangements resources to access case examples and guidance on how the subsidy is paid and claimed.
How to claim
The subsidy amount is paid in arrears. To receive this payment, you must lodge claims monthly with Services Australia.
Working out your claim amount
To work out your claim amount:
- add up all the costs of delivering the care and services for each care recipient during the claim period
- subtract any basic daily fees and additional service fees that the care recipients pays you – do not include income tested fees, as Services Australia automatically deducts these.
This is the invoice amount.
Claiming the subsidy
You must submit a claim form every month to Services Australia through the Aged Care Provider Portal.
When claiming:
- enter invoice amounts for each care recipient in your care
- include the supplements or reductions that apply
- record relevant care events such as entry, temporary leave and departure events.
Services Australia checks all claims to make sure they are for people who continue to be entitled to a Home Care Package (that is, has not exited the program).
Read more about submitting your monthly subsidy claims.
You must also provide a monthly statement of the services you have delivered to the care recipient.
Who calculates the subsidy rates
We calculate the basic subsidy and supplement rates on behalf of the Australian Government.
When the subsidy can vary
Subsidy rate changes
Subsidy and supplement rates are indexed every year on 1 July.
View the current rates in the Schedule of Subsidies and Supplements.
Temporary leave
If a care recipient takes temporary leave from their Home Care Package, their subsidy may decrease. It depends on how many days of leave they take.
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