Changes are coming into effect from 1 January 2023. Learn more about what changes are and how you can prepare for them.
What package management is
Package management is a service that supports the delivery of a Home Care Package. This service includes activities such as:
- establish and manage home care budgets
- coordinate services (such as schedule services and workers or arrange respite care)
- prepare invoices and monthly statements
- respond to enquiries about invoices
- organise third party services
- buy equipment (such as mobility aids)
- arrange allowable home modifications (such as bath rails)
- submit claims to Services Australia
- maintain and update income tested care fee and basic daily fee payments
- paperwork for ceasing care
- store and maintain records
- ensure staff are suitable (such as with police checks and immunisation checks)
- train and educate staff
- conduct quality improvement, compliance, and assurance activities
- complete financial reporting
- maintain COVID-19 vaccination compliance documents.
Package management does not include:
- business overheads or costs
- administration and communication or marketing costs (include these in direct service prices as needed)
- care management tasks
- direct service charges.
What you can charge for package management
You can charge for package management separately, but charges must be reasonable and justifiable.
You must publish package management prices in a dollar figure so care recipients can better understand and compare prices.
You cannot charge package management as an:
- hourly charge
- hourly charge on top of the base package management charge.
If you do not charge for package management, you must explain to the care recipient:
- how you deliver this service
- where you cover these costs.
You should consider lowering package management charges to reflect a reduction in administration and ensure value for money where a care recipient’s:
- needs reduce
- circumstances change, such as when they choose to self-manage or require fewer services.
From 1 January 2023, we are capping prices based on what level package the care recipient receives. This is part of the Australian Government’s commitment to reducing excessive administration and management costs in home care.
The maximum fortnightly amounts you can charge by level, from 1 January 2023, are:
| Home Care Package level | Daily max. package management charge | Fortnightly max. package management charge |
|---|---|---|
| Level 1 | $3.77 | $52.78 |
| Level 2 | $6.64 | $92.96 |
| Level 3 | $14.44 | $202.16 |
| Level 4 | $21.89 | $306.46 |
We have set these prices at a maximum of 15% of the package level and will increase with the basic subsidy each year. These prices are not the target price for these services or an indicator of what we consider a ‘reasonable’ price.
You can continue to charge for package management at a fortnightly or monthly rate as you have done previously. You do not have to pro rata the price if the care recipient ceases their home care part way through a period.
This means that if a care recipient has agreed to pay the maximum amount for package management in a month but leaves your care midway through the period, you can still charge the maximum amount for the entire month. You cannot charge for care and package management in a period where the care recipient has ceased care for the entire period.
Additionally, from 1 January 2023, you cannot charge for package management where you do not deliver a service (other than care management) in the claim month. This excludes the first month the care recipient is with the you.
Example
You and your level 3 care recipient discussed and agreed that the package management price would be $330 a month. You documented this in their home care agreement.
You also:
- agreed that you cannot charge for package management where no services are delivered in the claim month, except for the first claim month
- helped the care recipient understand why the first month is different, because you need to set up their package.
- helped the care recipient understand that you need to deliver care management as it is a mandatory service to ensure continued quality and safety.
After the start of care, the care recipient chooses not to receive services from 1 to 31 March. You did not deliver any services, except for care management. You cannot charge the care recipient for package management in this claim month. You will still need to give the care recipient a monthly statement for this period and include care management in your claim to Services Australia.
If the care recipient did not want to receive any services, including care management, you are expected to suspend the home care service. Visit Temporary leave from home packages for more information.
Legislation
For full details on package management, go to the User Rights Principles 2014.