Step 4.1

What is the fee structure for the Home Care Package?

Fee Structure of Home Care Package

The government pays subsidies and supplements for your care package and you may also be asked to make a contribution if you have enough money.  

Government payments go to your provider who holds funds on your behalf and works with you to coordinate the services you want. A provider must discuss and agree upon any fees with you before services begin.  The maximum fees payable must be recorded on the Home Care Agreement. 

The budget for your package is made up of:

  • Government subsidy (and any supplement)
  • Basic daily fee - which consumers may be asked to pay
  • Income tested care fee - which you may need to pay depending on your assessable income


  • Any other amounts you've agreed to pay

You can only be asked to pay an income-tested fee if your yearly income is above a set threshold which takes into account personal variables. 

If you are part of a couple, half of your combined income is considered in determining the income-tested fee, regardless of who earns the income.

After you've completed your income and assets assessment,the Department of Health Services will let you and your package provider know the maximum fees payable.

Jill Donaldson

agedcare101 Physiotherapist

The amount of subsidy that the government would normally pay to a package provider on your behalf is reduced by the maximum amount of income tested care fee that you can be charged.  The care subsidy reduction will be administered by the Department of Health Services.

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A special thanks to our contributors

Jill Donaldson


Jill has been practicing as a clinical physiotherapist for 30 years. For the last 13 years she has worked solely in the Aged Care sector in more than 50 metropolitan and regional facilities. Jill has also toured care facilities in the US and Africa and is a passionate advocate for both the residents in aged care and the staff who care for them. She researches and writes for DCM Media.

Chris Baynes

DCM Media, agedcare101

Chris has been a journalist and publisher in the retirement village and aged care sectors for 11 years. He has visited over 250 retirement villages and 50 aged care facilities both within Australia and internationally. Chris is a regular speaker at industry conferences plus is a frequent radio commentator.

Annie Donaldson

Nurse and Carer

Annie has a long career in both nursing and the media. She has planned and co-ordinated the medical support from both international TV productions and major stadium events. In recent years she has been a primary family carer plus involved in structured carer support.