Improved Payment Arrangement (IPA) update
Due to the implementation of Phase 2 of IPA, the contents on this page are currently under review.
We encourage you to check the Improved payment arrangements for home care webpage, to access information about how this initiative impacts delivery of the Home Care Program.
Note: We do not have access to all documents created by, received by, or stored by other government entities.
Who the subsidy is for
The Australian Government pays a subsidy to approved providers for each person receiving government-subsidised home care.
You can claim the subsidy for a person if we have assigned them a Home Care Package through the national priority system.
Calculating the subsidy
To work out the daily subsidy amount for a person receiving home care, we:
- start with the basic subsidy
- add any primary supplements
- subtract any reductions
- add any other supplement.
We base this on the claim form you submit. We add the daily subsidy amounts to get the monthly subsidy amount.
The basic subsidy rate depends on the package level – it increases for higher levels.
View the daily basic subsidy rates in the Schedule of Subsidies and Supplements.
Primary and other supplements provide extra funding for specific care needs. For some supplements, we automatically check eligibility for you. For others, you need to apply.
View the daily supplement rates in the Schedule of Subsidies and Supplements.
The reductions that apply to home care are the care subsidy reduction and the compensation payment reduction.
How to claim
You must submit a claim form every month to Services Australia. You can do this through aged care online claiming.
Include each person you’re claiming for and the supplements or reductions that apply.
Services Australia checks all claims to make sure they’re for people who have been assigned a Home Care Package.
You will get advance payment in the first few days of each month. Services Australia estimates the payment amount based on past payments.
When Services Australia gets a claim form, they check the advance payment against the form. If needed, they will either:
- make an extra payment in the following month
- reduce the following month’s payment.
Services Australia may deduct other amounts from the payment, such as to recover overpayments.
Who decides the subsidy rates
The Department of Health and Aged Care decides 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.
If a person takes leave from home care, their subsidy may decrease. It depends on how many days of leave they take.
To find out more, go to temporary leave from Home Care Packages.