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Home Care Packages (HCPs) provide older Australians with government-subsidized support that enables them to live independently in their own homes. For those navigating aged care options, understanding the ins and outs of HCPs is essential. This guide dives into the most common questions surrounding Home Care Packages level 1-4 and will help clarify the choices available.
What is a Home Care Package?
A Home Care Package (HCP) is a government-funded program designed to help older Australians who need support to continue living safely in their own homes. It provides a budget that can be spent on a wide range of services tailored to meet individual needs. These services can include anything from help with daily tasks, like cleaning and cooking, to nursing care and allied health support.
Home Care Packages are flexible, allowing recipients to choose the services they want and need, and are provided at four levels (Home care packages level 1-4) based on the level of care required. Each level corresponds to a different funding amount, with Level 1 being the lowest and Level 4 the highest.
Learn More About Home Care Packages Levels 1-4
For an in-depth understanding of Home Care Packages, explore the following resources:
How are Home Care Packages Different from CHSP?
The Commonwealth Home Support Program (CHSP) is another government initiative, but it differs from HCPs in scope and purpose. CHSP is designed for those who need lower levels of support or short-term care. It offers basic services, such as transport, meals, or help with housework, typically on a short-term basis, making it a good option for those just starting to need assistance.
In contrast, Home Care Packages provide a more comprehensive and ongoing support option. HCPs are designed for individuals who need more than the basic support offered by CHSP. They come with a higher budget and more flexibility, as well as a formal assessment by the Aged Care Assessment Team (ACAT) to qualify.
For more information on the differences between these two programs, you can read our guide on Understanding the Difference Between CHSP and HCP.
How Does a Home Care Package Work?
Once an individual is approved for a Home Care Package, they receive funding that they can use with a provider of their choice. The provider helps manage the package and ensures funds are spent on services aligned with the recipient's care plan. The recipient has the flexibility to choose and modify the services they receive as their needs change, working directly with their provider to make adjustments.
Each Home Care Package comes with its own level of funding:
Level 1: Basic care needs
Level 2: Low-level care needs
Level 3: Intermediate care needs
Level 4: High-level care needs
This funding can be used for approved services, and recipients can change providers or care plans as
How Much is a Home Care Package Worth?
The annual government funding for each package level is as follows:
Level 1: Up to $10,588.65 for basic care needs
Level 2: Up to $18,622.30 for low-level care needs
Level 3: Up to $40,529.60 for intermediate care needs
Level 4: Up to $61,440.45 for high-level care needs
These amounts are allocated to cover the cost of approved services and are managed by the chosen provider.
What Can I Spend My Home Care Packages level 1-4 Funds On?
Home Care Package funds can be spent on services and supports that contribute to a recipient’s health, safety, and independence. This can include:
Personal Care: Assistance with daily activities like bathing, dressing, and grooming
Domestic Support: Help with household tasks such as cleaning, laundry, and meal preparation
Health Services: Nursing care, physiotherapy, and podiatry
Social Support: Assistance to stay connected with the community, such as attending activities or visiting friends
Home Modifications: Adjustments like handrails, ramps, or other accessibility aids
What Can’t I Spend My Home Care Packages level 1-4 Funds On?
Home Care Package (HCP) funds must be used solely for services that support your health, safety, and independence. Here’s a summary of what’s generally not allowed:
Living Costs: Everyday expenses like rent, mortgage, utilities, groceries, and personal loans.
Entertainment and Leisure: Social outings, event tickets, or recreational club memberships unrelated to your care plan.
Gifts and Donations: Funds cannot be used for gifts to others or donations to organizations.
Non-Care Travel: Vacations or travel not linked to health needs or medical appointments.
Items Covered by Other Programs: Services already funded by Medicare or Veterans’ Affairs are ineligible.
Non-Essential Home Renovations: Major home improvements that don’t directly address care needs or safety.
Cash Withdrawals or Investments: Funds can’t be withdrawn as cash or invested.
Personal Items: Purchases like tobacco, alcohol, or other non-care-related items.
If you were considering using your HCP funding to purchase a fridge or a TV, unfortunately, this won’t be allowed. These restrictions ensure that HCP funds are used directly for essential care.
What Will a Home Care Package Cost Me?
Home Care Packages level 1-4 (HCPs) are largely subsidized, but recipients may need to contribute through the following fees:
Basic Daily Fee
A daily fee some providers charge, calculated as a small percentage of the single basic age pension (up to $13.08 per day). Not all providers require this fee.
Income-Tested Care Fee
An additional fee based on your income, determined by Services Australia. Subject to annual ($6,834.77 or $13,669.63 depending on income level) and lifetime caps ($82,018.15).
Additional Service Fees
Optional costs if you choose extra or higher-quality services not covered by your package.
Use the My Aged Care fee estimator to get a tailored cost estimate and discuss fees with your provider for clarity.
What’s the Difference Between an Approved vs. Assigned Home Care Package?
When applying for a Home Care Package, approval and assignment are two key stages:
Approved
After an ACAT assessment, an individual may be approved for a specific package level (1-4), meaning they’re eligible based on assessed care needs. However, approval doesn’t grant immediate access to funding or services.
Approved individuals join a national priority queue managed by My Aged Care, where wait times vary based on demand and individual priority status.
Assigned
After waiting in the queue, the individual is assigned a package, meaning funding is now available to activate their care services.
My Aged Care provides a referral code and notifies the individual, who then has 56 days to select and contract with a provider, with a possible 28-day extension if needed.
The main difference is that approval establishes eligibility without immediate access to funds, while assignment activates funding, allowing the person to start receiving services. Due to high demand, there can be a long wait between approval and assignment, with priority given to those with more urgent needs.
What is an ACAT Assessment?
An ACAT assessment evaluates an individual’s need for aged care services, determining their eligibility for a Home Care Package. Conducted by health professionals, it assesses daily task ability, physical health, and social support to recommend a care level (from Level 1 to 4).
For a detailed overview, see our ACAT Assessment Guide.
How Can I Get a Home Care Package?
To obtain a Home Care Package, the first step is to contact My Aged Care for an assessment. An ACAT assessment will then be scheduled, which will determine eligibility and the level of care required. Once approved, the individual is added to a waiting list and, in time, is assigned a package when funding is available.
How Often Will I Receive Services Through My Home Care Package?
The frequency of services depends on the level of your package and your individual care plan. For instance, Level 1 packages may provide a few hours of support per week, whereas Level 4 packages can cover several daily services, depending on the budget and chosen services.
What is the Income and Assets Assessment?
The Income and Assets Assessment is conducted by Services Australia to determine if a recipient needs to pay an additional income-tested care fee for their Home Care Package, based on their financial situation.
Income-Based: Primarily considers income, not assets, especially for Age Pension recipients. Income sources like pensions and part-time earnings are assessed.
Income-Tested Care Fee:
Annual Cap: Limits fees each year, with caps around $6,834.77 for part-pensioners and $13,669.63 for higher-income individuals.
Lifetime Cap: Sets a lifetime maximum (around $82,018.15) after which no further fees apply.
Application Process: Recipients submit financial details through an Income Assessment form with Services Australia or the Department of Veterans’ Affairs.
This assessment ensures fair contributions based on ability to pay, with protections in place to prevent excessive fees.
Can I Self-Manage My Home Care Package?
Yes, self-managing your Home Care Package allows you more control over your care, enabling you to choose providers, negotiate rates, and adjust services to suit your needs.
Benefits:
Control: Choose providers and customize services.
Cost Efficiency: Negotiate rates to maximize funds.
Flexibility: Adjust care as needs change.
Responsibilities:
Budgeting and Compliance: Track spending within government guidelines.
Administrative Tasks: Manage scheduling and reporting.
To begin, consult with your provider about self-management options and any associated fees. For a detailed overview, see our blog on Can I Self-Manage My Home Care Package?
What if I Don’t Spend All My Home Care Package Budget?
If you don’t spend all of your Home Care Package (HCP) budget, the unspent funds roll over and accumulate, allowing you to save for future needs or periods when more intensive care is required. These funds can be used later for additional services or larger expenses, such as mobility aids or home modifications.
 Your provider will issue regular statements on your balance, helping you plan how best to use these funds. If you switch providers, the funds transfer with you; however, if you exit the program, any unused funds typically return to the government.
How Can I Find a Home Care Provider?
Once assigned a Home Care Package, you can choose an approved provider that best suits your needs, considering factors like services, fees, and reputation. My Aged Care offers tools to compare providers, helping you find one aligned with your goals.
After selection, your provider will help create a personalized care plan to maximize your HCP funds and support your well-being. For more insight into how the right provider can make a difference, read our blog on The Impact of a Reliable Home Care Provider.
Can I Change Home Care Package Providers?
Yes, you can change your Home Care Package provider if your needs, service quality, or preferences change. Before switching, review your current agreement for any notice requirements or exit fees, and coordinate the transfer of unspent funds to your new provider. Evaluating potential providers ensures you find one that aligns with your goals and offers value for your investment. For guidance on choosing a provider that delivers real value, check out our blog on Does Your Home Care Provider Provide Value for the Money You Pay?.
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