The Australian Government subsidises home care for eligible older Australians — covering the majority of care costs so families are not left bearing the full expense.
Government subsidy
The government pays the majority of your care costs — from $10,731/yr at Level 1 to $78,106/yr at Level 8. This is paid directly to your approved provider.
Basic daily fee
Most package recipients pay a basic daily fee of around $12-$15/day. This is a standard contribution toward living costs and is not means-tested.
Income-tested care fee
If your income is above the threshold set by Services Australia, you may pay an additional income-tested care fee. This is assessed separately from your ACAT assessment.
Your package budget
The government subsidy minus provider management fees equals your care budget. You can allocate this toward services, equipment, or home modifications based on your care plan.
Government subsidy amounts only. Provider management fees and your contributions (basic daily fee, income-tested fee) are additional.
The Support at Home program replaced the previous Home Care Packages system from November 2025. It provides 8 levels of government subsidy — from $10,731 to $78,106 per year (Source: Australian Government Department of Health and Aged Care, 2025–26). The subsidy is paid directly to your approved provider, who manages the funds on your behalf.
| Level | Annual subsidy (2025–26) | Typical needs |
|---|---|---|
| Level 1 | $10,731/yr | Basic support needs |
| Level 2 | $18,063/yr | Low-level needs |
| Level 3 | $39,310/yr | Intermediate needs |
| Level 4 | $59,594/yr | High-level needs |
| Level 5 | $64,754/yr | Very high needs |
| Level 6 | $70,179/yr | Complex needs |
| Level 7 | $74,495/yr | Advanced complex |
| Level 8 | $78,106/yr | Highest needs / palliative |
Source: Australian Government Department of Health and Aged Care, 2025–26. Subject to annual indexation.
What counts against your budget
What does NOT count
Government funding covers the majority of costs, but most recipients contribute something. The amount depends on your income and the package level you receive.
Basic Daily Fee
~$12.53/day
Up to 17.5% of the Age Pension. Paid by most package recipients. Not means tested. Approximately $4,573/year. (Source: Services Australia, 2025–26 — subject to indexation)
Income-tested care fee
Varies
Applies if your income exceeds the Services Australia threshold. Assessed separately from your ACAT assessment. Call Services Australia on 1800 227 475 to understand your position.
Provider management fee
15–35% of budget
Taken from your package before care services are delivered. A 20% management fee on a Level 3 package ($39,310) leaves ~$31,448 for actual care. Compare provider fee schedules carefully.
Illustrative example — Level 3 package
Government subsidy: $39,310/yr. Provider management fee at 20%: $7,862. Remaining care budget: approximately $31,448. This pays for roughly 15–20 hours of support per week depending on service type.
This is illustrative only. Actual fees vary by provider. Always request an itemised fee schedule before signing a service agreement.
WithSally is always free to families. We are paid a referral fee by the provider once you sign a service agreement. We will always tell you how we are paid — no hidden commissions, no surprises.
Some older Australians use private home care — either while waiting for a government package, or to supplement their existing package. Here is how the two compare.
Government-funded
Private home care
Indicative market rates only — may vary significantly by provider and region. Confirm with individual providers. (Source: indicative market rates, 2025)
Who typically uses private care
People waiting on the national queue who need help now; people who want more hours than their government package allows; people who are ineligible for government funding; and those who value the flexibility of no assessment requirement. Many families combine both — using their government package for core services and topping up with private hours.
WithSally helps families understand what government support is available and connects you with the right provider. Always free to families.
Get guidance free