Since 2014, the number of Home Care Packages has significantly increased to meet growing demand, and this year continues that trend. As of 31 December 2023, there were 269,573 people receiving a Home Care Package. The Government has proposed to release an additional 24,100 packages over 2024-25, at a cost of $531.4 million.
The increased number of packages may reduce waiting times, but even after a package is allocated, finding a home care provider with the capacity to deliver the required services remains a challenge.
The Government plans to implement a new Single Assessment System to replace ACAT/ACAS and RAS assessments starting 1 July 2024. Funding is proposed to improve the infrastructure needed to facilitate this transition and support the eventual single at-home care system.
What does home care cost?
Before you can apply for a subsidised home care package you need to be approved by an Aged Care Assessment Team / Service. You can find more information at www.myagedcare.gov.au
The fees for home care are in two components:
- A basic fee paid by all care recipients
- An income-tested fee paid by care recipients who receive a part Centrelink/Veterans’ Affairs pension or are self-funded.
When calculating the fees, assessable income includes payments received from Centrelink or Veterans’ Affairs as well as assessable income from assets and investments using Centrelink income test rules. For example, cash, term deposits and shares will be assessed under deeming rules.
If you are able to structure your investments in a way that reduces assessable income this may reduce the fees you will be asked to pay. But it is always important to review your full situation to ensure that sufficient cash flow can be generated and to determine the impact on your net wealth.
This video explains the different home care subsided services, how much you pay and how to access them.
Video presenter: Luisa Capezio