Important changes to Home Care Package funding
Posted: 27th March 2025
From 1 January 2025, the Australian Government is increasing Home Care Package funding. This change is designed to support the rise in award wages for aged care workers. A pay rise for workers is positive news for the aged care sector, as it helps attract and retain skilled professionals, improving the quality of care.
What is the change to Home Care Package funding?
The Australian Government is increasing the package subsidy to help providers pass on this wage rise to aged care workers. All Home Care Package levels will see an increase of 0.93%. Below, you'll find a breakdown of how the basic subsidy rates will increase starting 1 March 2025:
| Home Care Package Level | Daily Subsidy Rate |
|---|---|
| Level 1 | $29.31 |
| Level 2 | $51.54 |
| Level 3 | $112.18 |
| Level 4 | $170.07 |
Will my care and services change?
No, there will be no changes to your care hours or services. The increase in funding is specifically to cover the wage increase for aged care workers. You will continue to receive the same level of care you have been receiving.
Will there be changes to my service fees?
If there are any changes to your service fees, your provider must discuss them with you before any changes are made. They should explain the reasons behind the new prices, what the new rates are, and when the changes will take effect. You will have at least 14 days to respond to any proposed changes to your Home Care Agreement.
I pay an Income-Tested Fee. Will that increase too?
If your income is above a certain level, you may be required to pay an Income-Tested Fee (ITF) for your Home Care Package. However, these fees are calculated separately from the Home Care Package subsidy, and they should remain unchanged for most people. If there are any changes to your ITF, Services Australia will notify both you and your provider.
At PlanCare, we’re dedicated to supporting you every step of the way. If you need assistance or have any questions, don’t hesitate to get in touch with your Co-Care Partner or give us a call at 1800 024 000.