Home Care Packages (HCPs) in Australia are divided into four levels, ranging from Level 1 (basic support) through to Level 4 (high-level care), with 2026 annual government subsidies spanning from approximately $10,271 to $61,440. Your level is determined by an ACAT assessment and reflects the complexity of your care needs — not your age or income.
What is a Home Care Package and how does the system work?
A Home Care Package is a coordinated, government-subsidised programme that helps older Australians live independently in their own homes for longer. Rather than receiving a fixed menu of services, you are assigned a funding amount based on your assessed care needs, and you work with an approved provider to build a personalised care plan using those funds.
The programme is administered by the Australian Government through the Department of Health and Aged Care. Once you are assessed and assigned a package level, you choose an approved Home Care Package provider — such as those listed among the best aged care providers in Sydney — who then delivers and coordinates your services. The provider charges an administration or case management fee, and the remainder of the subsidy is directed towards your individual care needs.
From July 2025, the Support at Home Programme began transitioning elements of the HCP framework, but the four-level structure remains the primary benchmark for assessments and funding allocations in 2026. It is worth confirming with My Aged Care whether any updated arrangements apply to your specific situation.
The four Home Care Package levels: what each covers
The four levels are designed to reflect increasing complexity of care needs. Here is what each level generally covers:
Level 1 — Basic care needs: Suited to people who need a small amount of support to remain independent. This might include occasional help with housework, social support, or transport to appointments. Level 2 — Low-level care needs: For those who require more regular assistance. Services may include personal care, meal preparation, home maintenance, and more frequent allied health support. Level 3 — Intermediate care needs: Covers a broader range of services for people with more complex needs, including nursing visits, continence management, and regular personal care and therapy services. Level 4 — High-level care needs: The most comprehensive package level, designed for people with complex health conditions who might otherwise need residential care. This can fund daily personal care, dementia support, clinical nursing, and intensive case management.According to the Australian Institute of Health and Welfare (AIHW), as of mid-2025 there were more than 260,000 Australians actively receiving a Home Care Package, with demand for Level 3 and Level 4 packages continuing to outpace supply.
2026 Home Care Package subsidy rates: full comparison table
The government subsidy is paid directly to your provider on your behalf. You may also be asked to contribute through a basic daily fee and, for higher-income earners, an income-tested care fee. Below is a comparison of the four package levels with 2026 annual subsidy figures and indicative weekly values.
| Package Level | Care Needs | Annual Gov. Subsidy (AUD) | Approx. Weekly Value | Income-Tested Fee Applies? | |---|---|---|---|---| | Level 1 | Basic | $10,271 | ~$197 | No (generally) | | Level 2 | Low | $17,991 | ~$346 | Yes (means-tested) | | Level 3 | Intermediate | $39,191 | ~$754 | Yes (means-tested) | | Level 4 | High | $61,440 | ~$1,181 | Yes (means-tested) |*Figures are indicative 2026 values based on Department of Health and Aged Care indexation schedules. Confirm current rates at myagedcare.gov.au or with your provider.*
The basic daily fee — which providers may charge — is capped at 17.5% of the single basic Age Pension rate. In 2026, this sits at approximately $13.40 per day. For a full breakdown of out-of-pocket costs, see our cost guide.
How to qualify: the ACAT assessment process
To receive a Home Care Package, you must first be assessed by an Aged Care Assessment Team (ACAT) — known as ACAS in Victoria. The assessment is free and is conducted either in your home, in hospital, or via telehealth where appropriate.
During the assessment, a trained assessor (often a nurse, social worker, or occupational therapist) will discuss your daily living challenges, health conditions, mobility, cognitive function, and the level of informal support you already receive from family or carers. Based on this, they recommend a package level to the Department of Health and Aged Care.
To initiate the process:
1. Call My Aged Care on 1800 200 422 or apply online at myagedcare.gov.au 2. Complete a registration and screening conversation 3. Be referred for a face-to-face ACAT assessment 4. Receive your approval letter and enter the national queue
It is important to note that being approved for a level does not mean you receive it immediately. Wait times in 2026 can vary significantly, particularly for Level 3 and Level 4 packages.
Wait times and what to do while you wait
One of the most significant frustrations for older Australians navigating the system is the wait time between ACAT approval and package assignment. According to the 2024–25 Report on Government Services, median wait times for Level 4 packages have historically exceeded twelve months in some states, though the federal government has committed to ongoing queue reduction measures.
While waiting, you have several options:
- Commonwealth Home Support Programme (CHSP): Entry-level, subsidised services that can bridge the gap while you wait for a package. - Interim packages: You may be offered a lower-level package as a temporary measure — it is generally advisable to accept this rather than wait for your assessed level, as you can transition once your higher-level package becomes available. - Private arrangements: Some families choose to fund care privately in the short term.
If your situation deteriorates significantly while waiting, contact My Aged Care to request a priority review of your needs.
Choosing the right provider for your package level
Once you receive your package assignment letter, you have up to 56 days to choose an approved provider before the package may be relinquished back into the queue. This is a crucial decision that affects both the quality of care you receive and how far your funding stretches.
Providers vary widely in their administration fees (typically 15–35% of the subsidy), the services they offer, and their responsiveness. When comparing providers, ask specifically:
- What is your package management and administration fee percentage? - Which services are included, and which are billed as extras? - Do you have staff available in my area and on weekends or public holidays? - How is my unspent funds balance managed?
Our methodology explains how we evaluate and compare aged care providers across Australia to help you make a confident, informed choice.
FAQ
Q: Can I change my Home Care Package level after it's been assigned? A: Yes. If your care needs change — either increasing or decreasing — you can request a review through My Aged Care. A new ACAT assessment will be conducted and your level may be adjusted accordingly. There is no limit on how many times you can be reassessed. Q: Does my income affect how much I pay for a Home Care Package? A: Your income can affect the income-tested care fee for Level 2, 3, and 4 packages. The Australian Taxation Office (ATO) shares income information with Services Australia to calculate your fee. Pensioners on the full Age Pension are generally exempt, while those with higher incomes may pay a capped additional contribution. The annual and lifetime caps on income-tested fees are indexed regularly. Q: Can I self-manage my Home Care Package? A: Partial self-management is available with most providers, and some providers offer full self-management models where you have more control over hiring workers and directing spending. However, a registered provider must still hold your package — you cannot receive the funds directly as a personal payment. Q: What happens to unspent funds in my Home Care Package? A: Unspent funds accumulate in your package account and must be used for approved aged care services. They do not convert to cash and cannot be transferred to family members. If you change providers, unspent funds are transferred to the new provider. If you leave the programme entirely (for example, entering residential care), unspent funds are returned to the government.---
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