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If you or a loved one is considering government funded Home care package at home, understanding the Home Care Package Guidelines is critical. The rules determine who qualifies, how much funding you receive, what services you can claim, and how providers must manage your funds.
This guide breaks everything down clearly — eligibility criteria, package levels, approved inclusions, exclusions, fees, and practical strategies to maximise your funding.
What Are the Home Care Package Guidelines?
The Home Care Package (HCP) Program is funded by the Australian Government Department of Health and Aged Care and regulated under the Aged Care Act 1997.
The Home Care Package Guidelines outline:
- Who is eligible
- How funding levels are determined
- What services can and cannot be claimed
- Provider responsibilities
- Fee structures and consumer protections
The goal is simple: help older Australians live safely and independently at home for longer.
As of recent government reporting, over 275,000 Australians receive a Home Care Package, with demand continuing to grow each year due to an ageing population.
Who Is Eligible Under Home Care Package Guidelines?
To qualify, you must:
1. Be 65 years or older
- 50+ for Aboriginal or Torres Strait Islander people
2. Require coordinated support services
You must demonstrate that you need help with daily living tasks such as:
- Personal care (showering, dressing)
- Mobility support
- Medication management
- Meal preparation
- Household tasks
3. Be assessed through My Aged Care
An assessment is conducted by the Aged Care Assessment Team (ACAT).
You must register via My Aged Care before an assessment is arranged.
What Assessors Look For
- Functional limitations
- Medical conditions
- Cognitive decline
- Safety risks at home
- Informal support network availability
If approved, you’ll be assigned a package level based on your care needs.
The 4 Home Care Package Levels Explained
The Home Care Package Guidelines define four funding levels.
Level 1 – Basic Care Needs
Approx. $10,000 per year
Suitable for minimal assistance (e.g., light cleaning, occasional personal care).
Level 2 – Low-Level Care
Approx. $18,000 per year
Includes regular personal care, basic transport, or meal support.
Level 3 – Intermediate Care
Approx. $40,000 per year
Designed for people with multiple care needs.
Level 4 – High-Level Care
Approx. $61,000 per year
For complex or high-dependency care requirements.
Aged care fees and charges are indexed annually and may vary slightly based on supplements and adjustments.
What Can You Claim Under Home Care Package Guidelines?
This is where confusion often arises.
The rule is simple: services must directly support your health, safety, independence, or wellbeing at home.
Approved Services
Under the Home Care Package Guidelines, you can claim:
Personal Care
- Showering and hygiene assistance
- Dressing and grooming
- Continence support
Clinical Care
- Nursing services
- Wound management
- Medication administration
Allied Health
- Physiotherapy
- Occupational therapy
- Podiatry
- Speech therapy
Home Maintenance
- Cleaning
- Gardening (safety-related)
- Minor home modifications (ramps, rails)
Social Support
- Transport to appointments
- Community participation
- Companionship visits
Assistive Technology
- Mobility aids
- Shower chairs
- Monitoring devices
What You Cannot Claim
The Home Care Package Guidelines strictly prohibit spending on:
- Rent or mortgage payments
- General groceries
- Holidays
- Entertainment subscriptions
- Items not related to care needs
- Large home renovations
The golden test: If it doesn’t directly relate to your assessed care need, it won’t be approved.
Fees and Contributions Explained
While the government funds most of your package, you may be required to contribute.
Basic Daily Fee
Some providers charge this. It is capped at:
- 17.5% of the single Age Pension for Level 1
- Higher percentages for higher levels
Income-Tested Care Fee
Determined by Services Australia.
Not everyone pays this.
Annual and lifetime caps apply to protect consumers.
How Funds Are Managed
Your package funding is:
- Held by your approved provider
- Managed through an individualised budget
- Reported monthly
- Fully portable if you switch providers
Under consumer-directed care (CDC), you have choice and control over how funds are spent — within the Home Care Package Guidelines.
How to Maximise Your Home Care Package
Many people underutilise their funding. Here’s how to avoid that:
1. Review Your Care Plan Regularly
Ensure services reflect current needs.
2. Understand Provider Fees
Ask about:
- Care management percentage
- Package management fees
- Exit fees
3. Use Unspent Funds Strategically
Funds roll over monthly. You can accumulate savings for larger approved purchases like mobility equipment.
4. Request Reassessment if Needs Increase
You may qualify for a higher package level.
Recent Updates to Home Care Package Guidelines
The aged care sector is undergoing reform following recommendations from the Royal Commission into Aged Care Quality and Safety.
Key changes include:
- Stronger quality standards
- Increased transparency on provider fees
- Improved reporting requirements
- A new Support at Home program expected to replace HCP in coming years
It’s important to stay informed, as structural reforms are being progressively implemented.
Final Thoughts
The Home Care Package Guidelines are designed to protect consumers while giving them flexibility and control. But understanding the fine print makes a significant difference in outcomes.
When used strategically, a Home Care Package can:
- Reduce hospital admissions
- Improve quality of life
- Extend independence at home
- Provide peace of mind for families
If you’re navigating the process for yourself or a loved one, start with a My Aged Care assessment and ensure your provider is transparent about fees and service inclusions.
Clarity leads to better care — and better care leads to better living at home.
