Changes to basic daily fee for level 1, 2 and 3 home care packages to commence on 1 July

Department of Health advice

16 Jan 2019


In late 2018, the Minister for Senior Australians and Aged Care sent a letter to home care recipients (click here to read). The letter was sent to people who were in care - with either an interim or approved home care package – but not to those who were not in care at the time.

The letter provided an update on the Home Care Packages Program, including the announcement in the 2018-19 Mid-Year Economic and Fiscal Outlook (MYEFO) of the release of 10,000 high level home care packages (5000 level 3 and 5000 level 4) in 2018-19. The release of the packages has since commenced and will continue across the next six months (to 30 June) as part of the Department of Health’s ongoing package release process, and in line with the available budget.

The Government also announced reductions to the maximum basic daily fee an aged care provider can charge - reduced by $400 for level 1, $200 for level 2 and $100 for level 3. There will be no change to the maximum basic daily fee for a level 4 home care package. 

The new amount of the maximum basic daily fee for each home care package level will not be finalised until the basic daily fee is indexed in March. The new maximum basic daily fee for each home care package level will then be calculated and this amount will apply from 1 July.

It is important to note there will be no reduction in the value of the package and the services that can be received, rather the Government will pay an additional amount of subsidy, equal to the reduction in the maximum basic daily fee, to the provider.

The reduced home care fees (basic daily fee) and subsequent increase to home care subsidy will take effect from 1 July. Once these changes have been applied, consumers, their nominee (if they have one) and approved providers will be advised through the quarterly review process in late July. The Department will also update the necessary information available on the Departmental and My Aged Care websites to coincide with these changes.