Bur Del

Home Care Packages Level 1 to 4 Explained: What Each Level Covers, Costs & Who Qualifies

Australia’s Home Care Packages (HCP) program provides government-subsidised funding for older Australians to receive support services at home. There are four levels: 

  • Level 1 (~$10,588/yr, basic needs) 
  • Level 2 (~$18,622/yr, low-level needs) 
  • Level 3 (~$40,529/yr, intermediate needs)
  • Level 4 (~$61,440/yr, high-level needs).

Eligibility is determined by an ACAT assessment.

This guide explains every level in detail what’s covered, who qualifies, and exactly how to access your package.

What Is the Home Care Packages Program?

The Home Care Packages (HCP) program is a Commonwealth Government initiative that provides older Australians with subsidised, coordinated support to help them live independently at home for as long as possible. These government home care packages are administered through the Department of Health and Aged Care and delivered by approved providers.

The program is consumer-directed — meaning you choose how your package funding is spent (within approved categories), which provider you use, and what services you prioritise. This flexibility is one of the program’s greatest strengths.

Home Care Packages are designed for people with care needs that are beyond what the Commonwealth Home Support Programme (CHSP) can provide. They are not means-tested for eligibility (anyone assessed as needing one can access one), though an income-tested care fee may apply for higher-income recipients.

All Four Levels at a Glance — Quick Comparison

The four levels of Home Care Packages are designed to match a progressively higher level of care need. Here is a complete side-by-side comparison:

LevelCare NeedAnnual Subsidy (2025)Approx. Weekly BudgetSupport Hours (est.)Who It’s For
Level 1Basic~$10,588~$204/week~2 hrs/weekMild support needs, mostly social
Level 2Low-level~$18,622~$358/week~3–4 hrs/weekSome daily living assistance needed
Level 3Intermediate~$40,529~$779/week~8–10 hrs/weekModerate, complex care needs
Level 4High-level~$61,440~$1,182/week~12–15 hrs/weekHigh, complex care needs at home

Notice: These subsidy figures are the government’s contribution. Provider administration fees and your own income-tested care fee (if applicable) are deducted from the package, reducing the amount available for direct care services. Your net care budget will be lower than the total subsidy figure.

Level 1 — Basic Care Needs: 

Level 1 Home Care Package is designed for older Australians who need a relatively small amount of support to remain safely and comfortably at home. This is typically someone who is largely independent but may need occasional help with specific tasks or social connection.

Common services funded under Level 1 include:

  • Light housekeeping
  • Shopping assistance
  • Transport to appointments
  • Social support & companionship
  • Garden & home maintenance
  • Meal preparation (occasional)

At approximately $204 per week, a Level 1 package typically funds around 2 hours of support per week — though this depends on the provider’s hourly rate and how much of the package goes toward administration fees.

Level 2 — Low-Level Care Needs

Level 2 Home Care Package is the most commonly assigned package level in Australia. It suits someone who needs regular, but not intensive, help with daily activities — perhaps because of age-related decline, a chronic health condition, or reduced mobility.

Level 2 typically funds 3–4 hours of support per week and can cover a broader range of services:

  • Personal care (showering, grooming)
  • Regular housekeeping
  • Medication management support
  • Regular meal preparation
  • Transport (multiple weekly)
  • Allied health (physio, OT)
  • Shopping & errands
  • Social support programs

Level 2 is also commonly assigned as an interim measure while waiting for a higher-level package — giving recipients access to meaningful support while their full care need package (Level 3 or 4) is allocated.

Level 3 — Intermediate Care Needs

Level 3 Home Care Package is designed for people with significantly more complex care needs — often involving multiple health conditions, cognitive decline, significant mobility limitations, or a combination of physical and psychosocial care needs.

With approximately $779/week, a Level 3 package can fund 8–10 hours of support per week and includes everything in Level 2, plus:

  • Dementia care support
  • Mobility equipment & aids
  • Nursing care (wound care, etc.)
  • Continence support
  • Speech pathology
  • Dietitian services
  • Morning & evening routines
  • Home modifications

Level 3 packages are in higher demand and typically have longer wait times. The significant jump in funding from Level 2 to Level 3 (~$22,000 more per year) reflects the substantially greater care complexity involved.

Level 4 — High-Level Care Needs

Level 4 Home Care Package is the highest level of government-subsidised home care available in Australia. It is designed for people with high and complex care needs who would otherwise require residential aged care — but who wish to remain living at home with intensive support.

With approximately $1,182/week in funding, a Level 4 package can fund 12–15+ hours of support per week and encompasses the full breadth of home care services:

  • Overnight & 24-hr support
  • Advanced dementia care
  • Complex nursing care
  • Full mobility & transfer support
  • Major home modifications
  • Specialist allied health
  • Medication administration
  • Behaviour support services

Level 4 recipients often have conditions such as advanced dementia, Parkinson’s disease, post-stroke complications, or multiple complex chronic conditions. The package is designed to delay or avoid residential care entry for as long as safely possible.

Who Qualifies? Full Eligibility Checklist

The following checklist covers the key eligibility requirements for a Home Care Package in Australia. You must meet all primary criteria to be eligible.

Home Care Package Eligibility Checklist 2026

  • You are aged 65 years or older
  • You are an Australian citizen or permanent resident
  • You have care needs that can be met at home
  • You have completed an ACAT Assessment through the Aged Care Assessment Team
  • Your needs are beyond what CHSP can provide
  • Income-tested care fee may apply (conditional)

What Services Can You Use Your Package For?

Home Care Package funding can be used for a wide range of services designed to support your independence, health, and wellbeing at home. Services must be related to your assessed care needs and agreed in your care plan.

Service CategoryExamplesAvailable From
Personal CareShowering, dressing, grooming, toiletingLevel 2+
Nursing CareWound care, medication, continence, monitoringLevel 2+
Allied HealthPhysiotherapy, OT, speech pathology, dietitian, podiatryLevel 2+
Domestic AssistanceCleaning, laundry, ironing, home organisationLevel 1+
Meal PreparationCooking meals, meal delivery servicesLevel 1+
TransportMedical appointments, shopping, social activitiesLevel 1+
Social SupportCompanionship, activities, centre visitsLevel 1+
Home ModificationsGrab rails, ramps, bathroom modificationsLevel 2+
Assistive TechnologyPersonal alarms, mobility aids, communication aidsLevel 2+
Garden & Home MaintenanceLawn mowing, minor repairs, safety checksLevel 1+
Cognitive SupportDementia support, behaviour programs, carer respiteLevel 3+

What HCP Funding CANNOT Be Used For

  • Rent, mortgage payments, or utility bills
  • Food and groceries (the products themselves — shopping assistance is covered but not the goods)
  • Entertainment or holidays
  • Gambling
  • Services not related to your assessed care needs
  • Services already covered by Medicare or other government program

Your Contribution: Fees & Out-of-Pocket Costs

Understanding the fee structure is essential when comparing providers and reviewing home care package guidelines.

Fee TypeWho Pays It?Amount (2025)Notes
Basic Daily FeeEveryone (optional — most providers don’t charge)Up to $13.00/dayMany providers waive this fee — always check
Income-Tested Care FeeHigher-income recipients onlyUp to $35.95/day (capped annually)Annual cap of ~$5,000; lifetime cap of ~$76,000
Provider Admin/Management FeeAll recipientsTypically 15–35% of packageShop around — fees vary significantly between providers
Care Management FeeAll recipientsTypically 10–20% of packageCovers coordination of your care plan and reviews

Step-by-Step: How to Apply for a Home Care Package

  1. Contact My Aged Care — 1800 200 422
  2. Undergo an ACAT assessment
  3. Receive your approval and level assignment
  4. Wait for a package to be assigned to you
  5. Choose your approved Home Care Package provider
  6. Develop your care plan with your provider

Wait Times & What to Do While You Wait

One of the most common frustrations with the Home Care Packages program is the wait time — particularly for Level 3 and Level 4 packages. Here is a realistic overview of current wait times and, crucially, what support you can access in the meantime.

Package LevelTypical Wait Time (2025)Factors Affecting Wait
Level 13–6 monthsRegional location, demand in area
Level 23–9 monthsLocation, time of year, assessment date
Level 36–12 monthsHigh national demand, limited allocations
Level 49–18 monthsHighest demand, limited availability

What to Access While You Wait

  • Commonwealth Home Support Programme (CHSP)— entry-level services (cleaning, meals, transport) that can be accessed while waiting for your HCP. Call My Aged Care to arrange.
  • Interim lower-level package— if approved for Level 3 or 4, you may be offered an interim Level 1 or 2 package while waiting. Accept it — you can use the services AND accumulate unspent funds.
  • Private care services— self-funded home care in the interim, which can later be replaced by your HCP services once allocated.
  • Carer Gateway— free support, counselling, and respite services for family carers. Call 1800 422 737

Conclusion

Choosing the right Home Care Package is about finding support that helps you stay safe, independent, and comfortable at home as your care needs change over time. Whether you need basic help around the house or more complex daily care, understanding Levels 1 to 4 can help you make informed decisions with confidence.

If you are looking for trusted and compassionate aged care in Burdekin, Bur-Del Co-Operative provides personalised home care, community support, transport, personal care, allied health services, and Home Care Package support tailored to local families across the Burdekin region. Their experienced team can also help guide you through My Aged Care, ACAT assessments, and choosing the right care services for your needs.

Recent Posts