Home Care Package fee scenarios for people entering care from 1 July 2014

How to use these scenarios

Use the scenarios below to help you understand how fees are calculated and how the income assessment works for people entering home care from 1 July 2014. 

The rates, thresholds and subsidies used in these scenarios were current on 20 March 2025. 

For the full list of current aged care rates, refer to:

• the Schedule of Fees and Charges
• the Schedule of Subsidies and Supplements.

Note: These fee scenarios do not constitute financial advice. We encourage individuals to seek independent financial advice to determine the best way to pay for their care.

Terms used

The following terms are used in the scenarios:

• Home Care Package fees – contributions from the care recipient to their provider for the cost of their care, which makes up some of a Home Care Package. 
  • Basic daily fee – payable by everyone who receives a package, though some providers choose not to charge it.
  • Income tested care fee – payable if a person’s income is above a certain amount, calculated by Services Australia based on an income assessment.
  • Additional services fees – payable if a person wants more services than their package funding otherwise covers.
• Home Care Package subsidy – total government contribution to each care recipient, which makes up most of a Home Care Package.
  • Basic subsidy – government funding, depends on the package level.
  • Primary supplements – additional government funding for specific care needs which is considered in calculating the income tested care fee.
  • Other supplements – additional government funding based on location or financial hardship.
• Home Care Package budget – the individualised budget available to the care recipient to pay for the services they need, which is made up of the government contribution and care recipient fees.
• Income assessment form – Services Australia’s Home Care Package Calculation of your cost of care form.

Full pensioner – Susan

Susan, 78, has been approved for a level 3 Home Care Package. She lives on her own and is on the full age pension ($1,149.00 per fortnight). Her annual income is $29,874.00.

Susan does not need to fill in an income assessment form. Services Australia already has enough information about her financial situation to complete her assessment.

As a full pensioner, she cannot be asked to pay an income tested care fee. Susan’s fees will consist only of the basic daily fee for a level 3 package: $12.80 per day.

The daily basic subsidy for a level 3 Home Care Package is $112.18. Susan is not eligible for any supplements. 

Susan’s basic daily fee will be added to the Home Care Package subsidy to make up her total budget.

Under her current financial circumstances and using the rates current on 20 March 2025, Susan’s Home Care Package budget is made up of:

After starting her Home Care Package, Susan finds she needs an additional service that is not covered by her level 3 package budget. She discusses her needs with her provider. She and her provider agree on a fee of $2 per day for the service she wants to add to her package. This fee will be added to Susan’s budget.

Part-pensioner – Li Wei

Li Wei, 81, is a part-pensioner who lives with his daughter. He has been approved for a level 2 Home Care Package and is eligible for the dementia and cognition supplement (a primary supplement).

Li Wei and his daughter would like to find out what fees he will need to pay once his package starts. They call Services Australia on 1800 227 475 to request a fee advice letter. Services Australia already has Li Wei’s income information, because he receives the age pension, so he won’t need to complete an income assessment form.

The daily basic subsidy for a Level 2 Home Care Package is $51.54 and the dementia and cognition supplement is $5.93. The government contributes these amounts, minus his income tested care fee towards Li Wei’s Home Care Package budget.

Li Wei’s basic daily fee of $12.45 is added to the government contribution plus the income tested care fee to increase the total value of his package budget.

Li Wei’s total annual income, including his pension, is $38,500. This exceeds the income free area for a single person ($33,849.40), so he is eligible to pay an income tested care fee. 

His income is below the income threshold for a single person for the income test ($65,260.00), which means the first income tested care fee cap of $18.85 per day applies for working out his income tested care fee (rather than the second cap).

Services Australia notifies Li Wei in a fee advice letter that, under his current financial circumstances, the maximum income tested care fee he can be charged is $6.38 per day. This is added to his basic daily fee to give his total daily Home Care Package fees.

Under his current financial circumstances and using the rates current on 20 March 2025, Li Wei’s total Home Care Package budget is made up of:

Self-funded retiree – Maria

Maria and her partner, Tony, are self-funded retirees who live in a small town. Maria has approval for a level 4 Home Care Package. The government will pay a daily basic subsidy of $170.07 for this package and will also pay a viability supplement of $2.87 as Maria lives in a rural town.

Maria would like to know what fees she will be asked to pay when her package becomes available.

To find out what fees she is eligible to pay, Maria completes Services Australia's income assessment form. She sends it to Services Australia to give them the information they need about her finances to work out her maximum income tested care fee.

Maria and Tony have a combined annual income of $130,000. As a member of a couple, half of this combined income is taken to belong to Maria. This means that Maria’s total assessed income is $130,000 x 0.5 = $65,000. 

This is above the income free area for a couple living together ($26,197.60), which means Maria can be asked to pay an income tested care fee. Her income also exceeds the income threshold for a couple living together ($49,873.20), which means the second income tested care fee cap applies for working out her income tested care fee.

The viability supplement is an ‘other supplement’, not a primary supplement, so it is not used in calculating Maria’s income tested care fee.

Services Australia notifies Maria that the maximum income tested care fee she can be charged is $37.70 per day. This will be added to her basic daily fee of $13.14 per day to give her total daily Home Care Package fees:

When Maria starts her Home Care Package, the government will pay the subsidy for a level 4 package minus her income tested care fee, as well as paying the viability supplement. 

Her basic daily fee will be added to this amount to increase the value of her total Home Care Package budget.

Under her current financial circumstances and using the rates current on 20 March 2025, Maria’s Home Care Package budget is made up of: