Important changes to Home Care Package funding
From 1 January 2025, the Australian Government is increasing Home Care Package funding. This is to support an increase in award wages for aged care workers. A boost to wages is welcome news because fair pay helps attract and retain skilled workers, improve care quality and recognise workers’ hard (and often under-appreciated) work.
Happy workers, better care – everyone benefits!
What is the change to Home Care Package funding?
The government is increasing the package subsidy to help providers pass on the wage increase to aged care workers. All Home Care Package levels will increase by 0.93%.
The table below shows how the basic subsidy rates will increase on 1 January 2025.
Will my care and services change?
There will be no change in your services or hours of care. The government is upping the value of your package to cover the wage increase for aged care workers. This means you’ll keep receiving the same care as before.
Will there be changes to my service fees?
If there are any changes to your home care pricing, your provider must discuss them with you before you agree to them. They should explain what the new prices are, why they’re necessary and when they’ll start.
You’ll have at least 14 days to respond to the proposed changes to your Home Care Agreement.
What if a price increase doesn’t seem reasonable?
If the prices proposed by your provider are related to the wage rise, it’s considered a reasonable increase. However, if you believe that your price increase is too high, start by talking to your provider. They should explain the new prices, why they’re changing and how they worked out the costs. They might compare the old and new prices to make it clearer.
If you’re still unsure or think the price increase isn’t reasonable, you have the right to make a complaint. This shouldn’t affect your care. Providers must have a complaints process in place, and you can also get help from an advocate to discuss your concerns. Speaking up helps providers understand issues and improve their services.
But if you’re still not satisfied after that, there’s always the option to explore other home care providers.
I pay an income tested care fee. Will that increase too?
If your income is above a certain level, you may pay an income tested care fee for your home care. However, these fees should remain the same for most people, as they are calculated separately to the Home Care Package subsidy. If there are any changes to your income tested care fee, Services Australia will send you and your provider a letter to let you know.
How can I get more from my Home Care Package?
If you’re not confident that your provider is making the absolute most of your package, don’t hesitate to reach out. Our expert Care Advisers have years of experience, and are ready to match you with a provider that prioritises making every dollar of your Home Care Package count.
