Did you think you would not qualify for the government subsidies on home care? Take another look - you might be surprised.
The cost of full-time private care provided in your own home may look daunting. But financial advice along with government-subsidised home care package and support from friends and family might make home care achievable and affordable.
Each home care package comes with an assigned budget that you can choose how to spend on care services (after administration costs). Part of this budget is paid by the government and part is paid by the recipient.
But are you too wealthy to qualify for the government subsidies?
Home care packages are income-tested. Any income-tested fee you are asked to pay reduces the government subsidy. There is no cut-off limit for eligibility to the government subsidies, instead there is just an annual cap on the amount you might need to pay. This means no-one is too wealthy to qualify for government subsidies, except possibly someone with very high income who receives a Level 1 package.
The table below shows the minimum and maximum fees that could be asked to pay for each package level as well as the government subsidy range (rounded to the nearest dollar).
| Package Level | Total Annual Budget | Care Recipient pays - Min | Care Recipient pays - Max | Govt pays: Min | Govt pays: Max |
| Level 1 | $12,633 | $3,606 | $12,633 | Nil | $9,027 |
| Level 2 | $19,688 | $3,810 | $15,327 | $4,361 | $15,878 |
| Level 3 | $38,471 | $3,920 | $15,437 | $23,034 | $34,551 |
| Level 4 | $56,400 | $4,022 | $15,535 | $40,865 | $52,378 |
An income-tested fee is only payable if assessable income exceeds $28,473 per year for a single person, or $22,095 per year combined for a couple living together. Below this income level, only the basic fee is payable (which is the minimum amount in the table above). Some home care providers waive this fee, but if they do, it also reduces the package budget available for you to spend.
Example 1:
Moira is a single homeowner with $1.2m in financial investments. She does not qualify for an age pension but has been approved for a Level 3 home care package. Moira will not pay an income-tested fee. She will only be asked to contribute $3,920 per year for her home care package and the government will pay the remaining $34,551.
Example 2:
Helen and Bob are married homeowners with $2m in financial investments. They do not qualify for an age pension, but Helen has been approved for a Level 4 home care package. Helen will not pay an income-tested fee. She will only be asked to contribute $4,022 per year for her home care package and the government will pay the remaining $52,378.
Want to find out more? Want to see what support you might be eligible for?
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Factual Advice Warning: Any information provided in this website is purely factual in nature and does not take into account your personal objectives, situation or needs. The information is objectively ascertainable and is not intended to imply any recommendation or opinion. This does not constitute financial product advice under the Corporations Act 2001 (Cth).
