Everything you need to know about home care funding

When considering aged care home services – whether it’s for yourself or a loved one – one of the biggest questions you probably have is around funding.

Thankfully, home care costs in Australia are shared between the person receiving the care and the Federal Government. Each person is asked to contribute to the cost of their home care, but that amount depends on the level of care required and your ability to contribute.

How do government subsidies for home care work?

Once you’ve been assessed as eligible by the government, the amount of home care funding you receive is determined by the Aged Care Assessment Team (ACAT).

The maximum contribution from the Australian Government increases each year. As of 20 March 2018 , the maximum annual subsidy paid for each of the four care levels is:
• Basic care needs – $8,267.25
• Low-level care needs – $15,045.30
• Intermediate care needs – $33,076.30
• High-level care needs – $50,286.05

For most Australian pensioners, the government funds the majority of their home care services.

Your basic daily fee

Next is your individual contribution. The first part is called a “basic daily fee” and it’s paid to your home care provider. My Aged Care shows the basic daily fee for your home care package is 17.5% of the basic age pension.

The single-person rate of the basic age pension is currently $834.40 per fortnight . So this fee breaks down to:
• $10.43 per day
• $146.02 per fortnight
• $3,796.52 per year

Note: The basic daily fee is calculated on the single rate of the basic age pension, whether you are single or part of a couple.

Income-tested care fee

Depending on your income, you may be asked to pay an additional care fee. This amount will be different for everyone, but there is both an annual cap and a lifetime cap. As of 20 September 2018, the maximum amount of income-tested care fees for in-home care is split into two groups.
Annual cap for home healthcare fees
For people with income under $52,036.40:
• $14.96 per day
• $5,446.43 per year

For people with income over $52,036.40:
• $29.92 per day
• $10,892.89 per year

Once you’ve hit your annual cap, you won’t have to pay additional income-tested care fees until the next anniversary of when you started receiving care.

Lifetime cap for care fees

The current lifetime maximum for income-tested care fees is $65,357.65, as of 20 September 2018 . Any home care fees of this type will be counted towards your annual and lifetime cap if you move into a residential aged care home.
Note: Fees and caps on fees are indexed twice a year on 20 March and 20 September. Visit My Aged Care for the latest information.

Fees for additional home care services

You have the option to top up your services privately should you wish to do so. This will allow you to have everything you need to live a comfortable, independent lifestyle in your own home. The cost of these private services vary depending on what you need and the frequency you receive them.

Find the right provider for your unique needs

If you’re ready to start comparing home care packages, the first step is knowing where to look. With Enrich Living Services, we understand that everyone has their own lifestyle preferences, wants and needs. That’s why we allow you to personalise your home care plan with our handy selector form. We will guide you through a short set of questions to ensure you get exactly what you want from a home care provider, even if you’re unsure what’s available.

Ready to switch providers or get started on your home care journey? We can help you get things moving by visiting the join us page.

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