In-Home Aged Care Costs – Government Funding Explained
As our population ages, the demand for in home care will continue to increase. In-home aged care comes at a cost, for individuals and for government.
However, finding the right information on the cost of Home Care Services can be difficult so we have provided some of the key things you need to know when accessing care from home.
Home Care Packages
The Australian Government subsidises Home Care Packages that are available through approved Home Care Service Providers. Once you have had your needs assessed by the Aged Care Assessment Service or Team, you may be eligible for a federal government funding ‘package’. There are 4 levels of funding packages available and the level of the package you receive will depend on the type of care and services you need.
These packages are designed for older people who live on their own but may need assistance and may include: domestic assistance, personal care, home maintenance, home modification and nursing care.
If you are taking up a Home Care Package, your service provider may ask you to pay either a basic fee or an income-tested care fee if your income is above a certain amount.
The Basic Fee
The Basic Fee for a Home Care Package may be up to 17.5% of the basic Age Pension.
This is capped at $139.58 per person per fortnight and increases occur on 20 March and 20 September each year in line with changes to the Age Pension.*
These rates apply to each person receiving a Home Care Package, even if you are part of a couple.
Income-tested Care Fee
Depending on your income, you may be asked to contribute more to the cost of your care and this is known as an income-tested care fee.
The Department of Human Services works out the income-tested care fee based on an assessment of your financial situation.
If you are part of a couple, half of your combined income is considered in determining your income-tested care fee, regardless of which partner earns the income. The assessment does not include the value of your home or any other assets.
You can only be asked to pay an income-tested care fee if you are:
- an individual with an income over $25,792.00 per annum
- part of a couple but separated due to illness with an income over $25,324.00 per annum
- part of a couple living together with a combined income over $40,050.40 per annum**
There are annual and lifetime caps that apply to the income-tested care fee for those with incomes exceeding the above thresholds. These are:
- $10,416.42 per annum and
- $62,498.66 per lifetime**
Once these caps are reached, you cannot be asked to pay any more income-tested care fees.
All costs are agreed upon with your Service Provider before you receive any services.
Need further assistance?
We want you to be able to make informed choices so you can have the peace of mind of knowing that you are getting everything that you are entitled to.
If you’d like to know more about your eligibility for assistance and what costs you may incur, contact Colbrow Care and one of our friendly consultants will be happy to discuss your particular needs and circumstances.
Call 1300 33 11 03 or Email care@colbrowcare.com.au
*Source: My Aged Care – Aged Care Home Costs and Fees page.
**Source: My Aged Care – HCP Costs and Fees page and My Aged Care – Aged Care Home costs and fees page.
