Home care packages help older Australians receive government-funded care services at home, but the agreements with approved home care providers can be surprisingly complex and costly. Case management fees, administration charges, and package management fees can consume 30-50% of the package funding, leaving far less for actual care services than recipients expect. Since 2017, home care packages have been assigned to the individual (not the provider), giving you the right to switch providers. But exit fees, notice periods, and the difficulty of understanding opaque fee structures make exercising this right harder than it should be.
What is a Package Terms and Fee Transparency?
A home care package is a coordinated package of government-subsidised care services delivered to older Australians in their homes. There are four levels (Level 1-4) with annual funding ranging from approximately $9,000 to $53,000. The home care package agreement is the contract between the care recipient and an approved home care provider setting out the services to be delivered, the fees charged, the care plan, and the terms for managing the package. The Aged Care Act 1997 and the User Rights Principles 2014 govern these agreements. Since February 2017, packages are consumer-directed, meaning you choose and can change your provider.
Red flags to watch for
While providers legitimately charge for administration and case management, fees consuming more than 35% of the package leave inadequate funding for actual care. The government's My Aged Care website publishes provider fee comparisons.
Since 2019, exit fees are capped at a maximum of 1 month's total package value (including government funding and any basic daily fee). Some providers still attempt to charge higher exit fees or impose additional administrative charges.
Under the User Rights Principles 2014, providers must give you a monthly income and expenditure statement showing exactly how your package funds were allocated. Without this, you cannot verify that funds were spent appropriately.
A vague care plan like '3 hours of care per week' does not tell you what services you will receive. The plan should specify personal care, domestic assistance, clinical services, and other support with clear scheduling.
Providers can only charge package funds for services listed in the approved care plan. Charges for unapproved services or administrative tasks not in the agreement may be a misuse of funds.
Your legal rights
Home care packages are governed by the Aged Care Act 1997, the User Rights Principles 2014, and the Quality of Care Principles 2014. Key rights include: the right to choose and change your provider (consumer-directed care since February 2017); the right to a written home care agreement before services begin; the right to a monthly income and expenditure statement; the right to have unspent funds transferred to your new provider within 70 days of leaving; and the cap on exit fees (maximum of one month's total package value since 2019). The Aged Care Quality and Safety Commission oversees provider compliance and handles complaints. The Charter of Aged Care Rights (Aged Care Quality and Safety Commission Rules 2018) sets out 14 rights including the right to safe, quality care, dignity, and the right to complain without fear of retribution. If a provider is not meeting standards, complaints can be lodged with the Aged Care Quality and Safety Commission on 1800 951 822.
Questions to ask before you sign
- 1What percentage of my package funding goes to administration and case management fees combined?
- 2Can you provide a clear breakdown of your fee schedule showing all charges that will be deducted from my package?
- 3If I decide to transfer to another provider, what is the exit fee, and how long does the transfer take?
- 4Will I receive a monthly itemised statement showing exactly how my package funds were spent?
- 5How often is my care plan reviewed, and can I request changes to the types and frequency of services?
- 6What happens to any unspent funds in my package — do they accumulate for future use?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.