What fees apply
The fees that may apply to people who start a Home Care Package from 1 July 2014 are:
Home care fees are affected by aged care rates, thresholds and subsidy rates, which change over time.
For a complete listing of the rates, see:
The fees are different for people who entered Home Care Packages before 1 July 2014.
Use the Understanding fees for home care fact sheet to help explain fees to your care recipients.
Basic daily fee
You can charge all care recipients a basic daily fee, regardless of their income. However, some providers choose not to charge this fee.
You must disclose whether you collect the basic daily fee on your profile on the My Aged Care Find a Provider page.
The basic daily fee is added to the Home Care Package subsidy to increase the funds available in a care recipient’s Home Care Package budget. If you do not collect this fee your care recipients will have a smaller budget for care and services.
If you choose to collect the basic daily fee, you should collect it from all your care recipients.
Exception: if your care recipient has applied for and been granted financial hardship assistance by Services Australia, they may not have to pay the basic daily fee.
How much you can charge
You can charge up to the maximum basic daily fee that applies to a person’s package level.
View the current maximum fees in the Schedule of Fees and Charges.
Income tested care fee
If a care recipient’s income is above a certain amount, they will need to pay an income tested care fee.
Full pensioners do not pay an income tested care fee.
See some examples of how the income assessment works for people with different financial circumstances.
How much you can charge
The income tested care fee is different for everyone, because it depends on their income. Services Australia conducts income assessments to work out the maximum income tested care fee a care recipient can be asked to pay.
After you submit an Aged Care Entry Record Form through the Aged Care Provider Portal for a person entering your care, Services Australia will send a fee advice letter to you and the care recipient.
If a care recipient wants to know their fees before they enter a Home Care Package, they can get a fee advice letter from Services Australia. This letter is valid for 120 days.
Collecting the income tested care fee
If a care recipient is liable to pay an income tested care fee, you must collect this fee. You can do this at whatever interval suits your business – this could be weekly, fortnightly or monthly.
You cannot collect fees more than one month in advance.
You cannot waive or reduce the income tested care fee. If you do, you will have to fund it yourself.
Interim fees
You may wish to start collecting fees while waiting for a person’s income assessment to be finalised.
Interim fees are set by providers. You can use the My Aged Care fee estimator or the Home Care Package fee scenarios to determine an appropriate interim fee for the person.
If a person does not complete an income assessment
If a person does not complete an income assessment, you can ask them to pay up to the maximum income tested care fee advised by Services Australia. This is the lower of either:
- the second daily cap in the Schedule of Fees and Charges
- the daily basic subsidy rate for the package received plus the primary supplements they’re eligible for.
How the income tested care fee affects the Home Care Package subsidy
Services Australia deducts a person’s maximum income tested care fee from the basic subsidy and primary supplements they’re eligible for. This is called the care subsidy reduction.
Services Australia will do this whether you charge the maximum income tested care fee, a lower income tested care fee or no fee.
Providers should charge the income tested care fee advised by Services Australia. If you do not charge the maximum income tested care fee, you must still provide services to the full value of the person’s package.
For examples of how the income tested care fee affects the Home Care Package subsidy, see the fee scenarios for:
Annual and lifetime caps
Annual and lifetime caps apply to income tested care fees.
The annual and lifetime caps move with a person if they change providers.
The income tested care fees a care recipient pays for a Home Care Package will also count towards their annual and lifetime caps in residential aged care if they move into an aged care home.
If a care recipient has reached the:
- annual cap, you cannot charge them any more income tested care fees in that year
- lifetime cap, you cannot charge them income tested care fees for the rest of their time in home care.
Services Australia will let you and the care recipient know when they have reached a cap. We will pay the remaining income tested care fees to you through a higher subsidy.
View the caps in the Schedule of Fees and Charges.
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.
Review of fees
Changes to the basic daily fee rates
The maximum basic daily fee increases on 20 March and 20 September each year, in line with changes to the age pension.
View the Schedule of Fees and Charges for current fee rates.
Reviews of the income tested care fee
Services Australia regularly reviews income tested care fees. If a person’s income tested care fee changes, Services Australia will send a letter to you both. You may owe the person a refund as a result of this review.
You should encourage care recipients to update their details with Services Australia if their financial circumstances change.
Managing fees
Find out what you must do to manage fees when a person enters and receives home care, including:
- explaining fees to care recipients
- when you can charge fees
- what to do if a person is in financial hardship
- temporary leave
- when you must refund fees.