Understanding the Basic Daily Fee for Home Care Packages and Aged Care Homes
When considering a Home Care Package (HCP) or moving into an aged care home, understanding the fees involved is crucial. Two of the most common charges are the Basic Daily Fee and the Means-Tested Care Fee (also known as the Income-Tested Care Fee). Let’s break down these costs to help you make an informed decision.
Basic Daily Fee: What You Need to Know
Home Care Packages
The Basic Daily Fee for Home Care Packages is an amount that providers can charge but is not mandatory. Some providers waive this fee to make their services more affordable. If charged, it is set as a percentage of the single person rate of the basic age pension and is adjusted every March and September.
At Gratitude In-Home Care, we do not charge our clients the Basic Daily Fee. This allows clients to receive more support from their Home Care Package without additional financial burden.
Basic Daily Fee by Home Care Package Level (from 20 March 2025):
Package Level | Daily Fee | Fortnightly Fee |
Level 1 | $11.77 | $164.78 |
Level 2 | $12.45 | $174.30 |
Level 3 | $12.80 | $179.20 |
Level 4 | $13.14 | $183.96 |
This fee helps cover the cost of day-to-day services, such as meal preparation, cleaning, and laundry. The amount you pay directly to your provider contributes to your overall Home Care Package budget.
Aged Care Homes
For residential aged care, everyone pays a Basic Daily Fee. This fee covers essential services like meals, cleaning, laundry, and facility maintenance. The fee applies even if you are temporarily away (e.g., on holiday or in hospital).
The maximum Basic Daily Fee as of 20 March 2025 is $63.82 per day, equating to $23,294.30 per year. It is set at 85% of the single basic age pension and updated twice a year.
Means-Tested (Income-Tested) Care Fee: Do You Need to Pay It?
The Means-Tested Care Fee, also known as the Income-Tested Care Fee, is an additional charge for those receiving residential aged care. It is determined by an income and means assessment conducted by Services Australia.
When Is the Income-Tested Care Fee Charged?
The Income-Tested Care Fee applies to people receiving a Home Care Package who have a higher income and are assessed as being able to contribute more towards their care. The exact amount depends on the results of a formal income assessment conducted by Services Australia.
- If your income is below the threshold, you will not have to pay this fee.
- If your income is above the threshold, you may be required to pay an Income-Tested Care Fee in addition to your Basic Daily Fee.
- The fee is not applicable to people on a full pension, as their income is below the required limit.
- This assessment does not consider assets, only your income.
Difference Between Home Care and Residential Aged Care Assessments
- Home Care Packages: The Income-Tested Care Fee is calculated based only on your income. Assets are not included in the assessment.
- Residential Aged Care: The Means-Tested Care Fee is determined by a combined assessment of both income and assets. This means that people with significant assets may have to contribute more towards their care.
Annual and Lifetime Caps
To ensure affordability, the government places caps on the Means-Tested (Income-Tested) Care Fee:
- Annual cap: $34,311.23
- Lifetime cap: $82,347.13
If you paid an Income-Tested Care Fee while receiving a Home Care Package, it will count towards these caps if you later move into an aged care home.
What Will It Cost You?
Your out-of-pocket costs depend on your income and the services you choose. You may be expected to pay:
- Basic Daily Fee (up to $13.14 for HCPs from 20 March 2025)
- Income-Tested Care Fee (up to $37.70 per day for those who qualify)
- Additional Fees for extra services not covered by your package
To get a personalized estimate, use the fee estimator available on the Department of Health and Aged Care website.
Final Thoughts
Understanding the Basic Daily Fee and Means-Tested (Income-Tested) Care Fee helps you plan your aged care expenses. Whether you are receiving care at home or in a residential facility, knowing these costs ensures you make the best financial decisions for your future. If you are unsure about your eligibility or payment obligations, consider speaking with a financial advisor or aged care specialist.
About Gratitude
We’re a registered Home Care Package Services provider that specialises in Self-managed services. No matter your package level, contact Gratitude In-Home Care. We offer self-managed Home Care Package services at just 15%.
With a level 4 package, self-management can save you $12,415 annually, potentially providing an extra 250 hours of care each year compared to fully managed options!
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http://www.gihc.com.au/
1300 912 155, (03) 9863 6149
info@gihc.com.au
