Federal subsidy program · 4 levels
Home Care Package Australia: complete guide to Levels 1–4
A Home Care Package (HCP) is the Commonwealth's funded in-home support program for older Australians. ACAT assesses your level (1 basic to 4 high care); the federal government pays an annual subsidy to your chosen provider; you direct what services are delivered. This page compares all four levels side by side and explains how to apply.
★Key takeaways
- ✓A Home Care Package (HCP) is a federally subsidised bundle of in-home support services for older Australians needing more help than CHSP can provide.
- ✓Four levels run from Level 1 (basic) to Level 4 (high care), with annual federal subsidy ~$10,000 to ~$60,000 paid to your chosen provider.
- ✓ACAT in-home assessment is the gateway – apply via My Aged Care on 1800 200 422; free, government-funded.
- ✓You pay a basic daily fee (~$12.75/day, 17.5% of single Age Pension) and, if assessable income is above threshold, an income-tested care fee – lifetime cap $85,000.
- ✓Provider care + package management fees are capped at 20% combined under 2024–25 reforms. Exit fees banned. Packages fully portable between providers + states.
Side by side
Compare all four Home Care Package levels
Federal subsidies indexed twice yearly. Figures shown reflect indexation effective 20 March 2026. Verify the current rate at health.gov.au before any financial decision.
Deciding which level
Which level matches which need
Level 1 · Basic care needs
$10,588/year · 2–3 hours care
Level 1 Home Care Package suits older Australians with basic care needs – limited domestic help, occasional personal care + minor allied health input. It is the entry point into the HCP system for people whose needs are slightly above the CHSP thresh…
Read full Level 1 guide →
Level 2 · Low-level care needs
$18,622/year · 4–5 hours care
Level 2 Home Care Package supports older Australians with low-level care needs – more substantial domestic + personal care help than Level 1, with regular allied health + nursing input. It is the most common HCP level by participant volume per Depart…
Read full Level 2 guide →
Level 3 · Intermediate care needs
$40,529/year · 7–9 hours care
Level 3 Home Care Package supports older Australians with intermediate care needs – daily personal care, regular nursing involvement + a complex care plan addressing multiple conditions. Level 3 is the threshold where the package starts to make resid…
Read full Level 3 guide →
Level 4 · High-level care needs
$61,440/year · 10–13 hours care
Level 4 Home Care Package is the highest level – federally subsidised at ~$60,000/year – supporting older Australians with high-level, complex care needs who choose to remain at home rather than enter residential aged care. Level 4 funds daily person…
Read full Level 4 guide →
How to apply
Six steps to a Home Care Package
- 1
Apply via My Aged Care
Call 1800 200 422 or apply online at myagedcare.gov.au/assessment/apply-online. A family member, GP or aged-care advocate can apply on your behalf.
- 2
ACAT in-home assessment
An Aged Care Assessment Team delegate visits your home (usually 4–6 weeks after application). They review medical history, ADL function, home environment, family support + your goals. Free, federally funded.
- 3
Receive your approval letter
ACAT sends a written decision with your assigned level. The letter is your eligibility – present it to any HCP provider. Decisions can be reviewed if you disagree with the assigned level.
- 4
Choose a provider
Use the My Aged Care provider finder to compare HCP providers in your area. Ask for itemised fee schedules + hourly rates. Get at least 2–3 quotes before signing.
- 5
Sign the Home Care Agreement
A two-part document: the Home Care Agreement (contract) + the Care Plan (services breakdown). Read carefully – fee schedule, hourly rates, care + package management fees must be itemised. Ask for clarification on anything unclear.
- 6
Services commence
Once the package is assigned + activated, services start within ~2 weeks. Monthly statements show spend against your budget. Review the care plan with your provider every 3–6 months or when needs change.
Free independent advocacy
If anything goes wrong with your package – provider not delivering, fees disputed, care plan inadequate – contact the Older Persons Advocacy Network (OPAN) on 1800 700 600. Free, independent, federally funded. opan.org.au
Common questions
Home Care Package – frequently asked questions
How do I apply for a Home Care Package?
Apply via My Aged Care online or by calling 1800 200 422. An ACAT (Aged Care Assessment Team) delegate conducts an in-home assessment – free, federally funded, typically scheduled within 4–6 weeks. Once approved you receive a written decision with your assigned level. You then choose a provider, sign the Home Care Agreement + commence services.
Which Home Care Package level do I need?
ACAT decides based on functional need: Level 1 (basic, 2–3 hrs/wk), Level 2 (low, 4–5 hrs/wk), Level 3 (intermediate, 7–9 hrs/wk), Level 4 (high, 10–13 hrs/wk). You cannot choose your level – it is assessed. If your needs grow, request a reassessment.
How long is the waiting list?
Wait varies by level + region. Level 1–2 typically commence within 1–3 months. Level 3–4 historically had longer waits (6–12 months) though the 2024–25 reform funding has reduced this. Until your assigned package starts, you can access an interim lower-level package + CHSP services.
How much does a Home Care Package cost out of pocket?
Most full-rate pensioners pay only the basic daily fee (~$12.75/day, 17.5% of single Age Pension). Self-funded retirees with higher incomes also pay an income-tested care fee – capped at ~$36.04/day, with a lifetime cap of $85,000. See Services Australia means assessment to estimate your fees.
Can I switch providers if I'm not happy?
Yes – packages are portable nationally. Notify your current provider in writing, choose a new one, sign the new agreement. The old provider transfers unspent funds. Exit fees were banned under the 2024–25 reforms. Allow 2–4 weeks for the change.
What's the difference between HCP and CHSP?
CHSP (Commonwealth Home Support Programme) is entry-level – a few hours/week of basic support, simple per-service pricing, faster access. HCP is the full-package program: individual budget $10k–$60k/year, broader services, care management. Start with CHSP; move to HCP when needs grow.
What's changing with Support at Home?
From 1 July 2025 the federal government begins transitioning HCP + CHSP into a single Support at Home program. Existing recipients continue receiving services without disruption. The new program is intended to simplify entry, increase flexibility + close the gap between CHSP-level and HCP-level need. Detailed transition rules are published progressively by the Department of Health.