How we fund Home Care Packages
The total amount of funding in an individual package budget is made up of:
- a government subsidy, and supplement payments (if eligible)
- fees paid by care recipients.
Any funds remaining at the end of the month carries over to the next month – this is called unspent funds.
Subsidy
The government pays a subsidy on behalf of each care recipient assigned a Home Care Package. The amount is different for each level of Home Care Package.
Find out how we calculate the Home Care Package subsidy and how to claim.
Subsidy increase to pass on wage rise
The subsidy amount increased on 1 March 2025. This increase supports providers to pass on the award wage increase for registered and enrolled nurses working in the aged care sector.
Read more about the subsidy increase.
Supplements
Eligible care recipients may be able to receive additional supplement payments to help approved providers with the cost of meeting specific care needs.
Find out who is eligible for supplements and what they are.
Subsidy reductions
In some cases, the government may reduce the subsidy available for approved providers to claim against.
This could be because the care recipient contributes to their care costs (that is, income tested care fee) or is entitled to compensation payments.
Find out about subsidy reductions and what you need to do.