Level 2 home care package: $17,346 funding explained (2026)
Camila
Healthcare Expert
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Key points
- Level 2 home care packages provide approximately $17,346 per year in government funding
- The most commonly assigned package level in Australia
- Covers personal care, domestic help, transport, basic allied health, and social support
- Around 6 to 8 hours of support per fortnight
- You need an ACAT assessment through My Aged Care to qualify
- Provider fees significantly affect how many care hours you actually receive
What is a Level 2 home care package?
Level 2 is the most commonly assigned home care package in Australia. It is designed for older people who need regular help with daily activities but can still manage most aspects of their life independently.
This is where home care starts to feel like real support. Unlike Level 1, which covers mostly domestic help and transport, Level 2 includes personal care, meaning help with things like showering, dressing, and managing medications.
Most people on Level 2 are dealing with a combination of age-related slowdown and one or two health conditions. They can still live independently, but doing so safely requires regular assistance.
How much funding do you get?
Level 2 provides approximately $17,346 per year in government funding. This is about $1,445 per month or $667 per fortnight.
As with all home care packages, your provider deducts their fees from this amount before spending the rest on your care. Provider fees vary significantly.
| Provider fee percentage | Amount for fees | Amount left for care |
|---|---|---|
| 15% | $2,602 | $14,744 |
| 20% | $3,469 | $13,877 |
| 25% | $4,337 | $13,010 |
| 35% | $6,071 | $11,275 |
The difference between a low-fee and high-fee provider is substantial. At Level 2, choosing a provider that charges 15% instead of 35% gives you an extra $3,469 per year for care. That is roughly 60 additional hours of support.
Always ask for a full fee schedule before choosing a provider. The fees should include:
- Administration fee (percentage of the package)
- Care management fee (for coordinating your services)
- Any surcharges for weekend or public holiday services
What services does Level 2 cover?
Level 2 covers a broader range of services than Level 1. Your care plan is tailored to your needs, so you will not use every service on this list.
Personal care
- Help with showering and bathing
- Assistance with dressing and grooming
- Toileting support
- Skin care and basic wound care
- Mobility assistance around the home
Domestic assistance
- Regular house cleaning
- Laundry and ironing
- Bed making and linen changes
- Kitchen and bathroom cleaning
Meal support
- Meal preparation and cooking
- Grocery shopping assistance
- Nutritional guidance
- Meals on Wheels coordination
Transport
- Medical and specialist appointments
- Allied health visits
- Social activities and outings
- Shopping trips
Basic allied health
- Podiatry (foot care)
- Basic physiotherapy
- Dietitian consultations
- Occupational therapy assessments
Medication management
- Medication reminders and prompting
- Help organising medication in Webster packs
- Liaison with pharmacy
Social support
- Companionship visits
- Community group participation
- Outings and activities
- Help staying connected with family
Garden and home
- Garden maintenance
- Minor home maintenance
- Safety checks (smoke alarms, trip hazards)
What Level 2 does not typically cover:
- Regular nursing care (wound management, catheter care)
- Complex allied health interventions
- Significant home modifications
- Assistive technology and equipment
- Overnight or live-in care
- Regular respite care
If you need these services, you likely require a Level 3 or Level 4 package.
How many hours per fortnight?
With $17,346 per year, after provider fees, you can expect around 6 to 8 hours of support per fortnight.
The actual hours depend on your provider’s rates and the services you use. Basic support services (cleaning, transport) tend to cost $50 to $65 per hour. Personal care is usually $55 to $75 per hour. Allied health visits can cost $100 to $180 per session.
A typical Level 2 fortnightly schedule:
| Day | Service | Hours |
|---|---|---|
| Monday | Personal care (shower assistance) | 1 hour |
| Monday | Domestic help (cleaning, laundry) | 1.5 hours |
| Wednesday | Transport to medical appointment | 1 hour |
| Thursday | Personal care (shower assistance) | 1 hour |
| Friday | Meal preparation and grocery shopping | 1.5 hours |
| Fortnightly | Social outing or companionship visit | 1 hour |
| Total | 7 hours |
This is a realistic picture of Level 2 care. You get regular, structured support a few times per week, which is enough to keep most people with low-level needs safe and comfortable at home.
Who is Level 2 for?
Level 2 suits people who:
- Need regular help with personal care (showering, dressing)
- Cannot manage all household tasks independently
- Have one or two chronic conditions that require monitoring
- Need transport to regular appointments
- Are at risk of falls or safety issues at home
- Would benefit from social support and check-ins
Common scenarios for Level 2:
- An 80-year-old with mild arthritis who needs help showering and keeping the house clean
- A 75-year-old recovering from a hip replacement who needs ongoing support with mobility and daily tasks
- A couple in their late 70s where one partner is becoming the carer for the other and needs respite
If you are managing well with just occasional help (cleaning once a week, transport once a fortnight), Level 1 might be sufficient. If you need nursing care, complex health management, or more than 8 hours per fortnight, talk to your assessor about Level 3.
How to apply
The process is the same for all home care package levels:
- Call My Aged Care on 1800 200 422 or visit myagedcare.gov.au
- Complete the initial screening (15 to 20 minutes)
- Have your ACAT assessment at home (about 1 hour)
- Receive your approval letter with your assigned level
- Choose a provider when your package becomes available
- Start services after signing your Home Care Agreement
Wait times for Level 2 are typically 3 to 9 months, though this varies. While waiting, ask about the Commonwealth Home Support Programme for interim support.
Not sure which level you need? Take our free ACAT Assessment Level Quiz to estimate your care needs.
For a detailed guide to the assessment process, read our home care package eligibility guide.
Costs and fees you pay
Basic daily fee
Your provider may charge a basic daily fee of up to 17.5% of the single basic Age Pension, which works out to around $12.50 per day or about $4,560 per year. Not all providers charge this fee, and some charge less.
Income-tested care fee
If your income is above the full Age Pension threshold, Services Australia calculates an additional fee based on your income. This fee is capped both annually and over your lifetime. The value of your home is not included in the assessment.
Full pensioners do not pay an income-tested fee.
For current rates and thresholds, visit Services Australia.
Level 2 vs other levels
| Feature | Level 1 | Level 2 | Level 3 | Level 4 |
|---|---|---|---|---|
| Annual funding | $10,271 | $17,346 | $38,454 | $62,589 |
| Hours per fortnight | 2-4 | 6-8 | 10-15 | 20-28 |
| Personal care | Limited | Yes | Yes | Extensive |
| Nursing care | No | Basic | Yes | Complex |
| Allied health | No | Basic | Yes | Yes |
| Home modifications | No | Minor | Yes | Extensive |
| Respite care | No | Limited | Yes | Regular |
For a complete comparison of all levels, read our home care packages complete guide.
Support at Home transition: What Level 2 recipients need to know
Since November 2025, the Support at Home Program has been replacing home care packages for new applicants. If you currently have a Level 2 package, here is what you need to know about the transition.
Level 2 mapping to Support at Home
Level 2 home care packages map to Support at Home Classification Levels 2 and 3, depending on your specific care needs:
| Old system | New system | Annual funding (approx) |
|---|---|---|
| Level 2 HCP | Classification Level 2 | $12,000 to $16,000 |
| Level 2 HCP | Classification Level 3 | $16,000 to $22,000 |
The new system is more granular, with 8 classification levels instead of 4 package levels. This means you may receive funding that better matches your actual needs rather than a fixed package amount.
How the transition works
If you are currently receiving a Level 2 package:
- You will continue to receive Level 2 funding until your scheduled transition date
- You will be reassessed using the new assessment framework (no longer ACAT)
- Your new classification level will be determined based on your current functional needs
- Your existing provider can continue delivering services under the new system
Timeline: All current Level 2 recipients will transition to Support at Home by mid-2027. The government will contact you directly when it is your turn to transition.
Key differences under Support at Home
1. Funding structure
Support at Home uses three funding streams instead of a single package budget:
- Independence stream: Help with daily living activities
- Everyday living stream: Domestic assistance, meals, transport
- Clinical and allied health stream: Nursing, therapies, medication management
Each stream has its own allocation based on your assessed needs. This prevents situations where you run out of funding for personal care because you spent too much on cleaning.
2. Provider choice and flexibility
Under Support at Home, you can:
- Use multiple providers for different services (instead of one package provider)
- Switch providers more easily without transferring unspent funds
- Access services more quickly (reduced waitlists)
3. Fee changes
The basic daily fee remains similar ($66.01 per day in 2026), but the income-tested care fee calculation has changed. For most Level 2 recipients, fees will be comparable to or slightly lower than the old system.
For detailed information on Support at Home funding levels, see our guides to classification levels 1-3 and levels 4-6.
What you should do now
If you are waiting for a Level 2 package: Call My Aged Care and ask whether you should wait for Level 2 or apply for Support at Home instead. New applicants after November 2025 are assessed under the Support at Home framework.
If you currently have Level 2:
- Continue using your package as normal
- Watch for transition notices from the government
- Start researching Support at Home to understand how it will work for you
Real cost examples: What Level 2 actually buys in 2026
Understanding what your $17,346 annual funding translates to in real-world care hours is essential. Here are three realistic scenarios based on 2026 provider rates.
Example 1: Low-fee provider (15 percent admin fee)
Annual funding: $17,346
Provider admin fee (15 percent): $2,602
Available for care: $14,744 per year ($1,229 per month)
Typical hourly rates:
- Personal care: $60/hour
- Domestic assistance: $55/hour
- Transport: $50/hour
- Allied health: $120/session
Fortnightly schedule:
- 2 x personal care (shower assistance): 2 hours x $60 = $120
- 1 x domestic cleaning: 2 hours x $55 = $110
- 1 x grocery shopping and meal prep: 1.5 hours x $55 = $82.50
- 1 x transport to medical appointment: 1.5 hours x $50 = $75
- 1 x social outing or companionship: 1 hour x $55 = $55
Fortnightly total: $442.50
Annual cost: $11,505
Budget remaining: $3,239 (for allied health visits, emergencies, or respite)
Hours per fortnight: 8 hours
Example 2: Mid-fee provider (25 percent admin fee)
Annual funding: $17,346
Provider admin fee (25 percent): $4,337
Available for care: $13,010 per year ($1,084 per month)
Typical hourly rates:
- Personal care: $68/hour
- Domestic assistance: $60/hour
- Transport: $55/hour
- Allied health: $140/session
Fortnightly schedule:
- 2 x personal care: 2 hours x $68 = $136
- 1 x domestic cleaning: 1.5 hours x $60 = $90
- 1 x meal prep: 1 hour x $60 = $60
- 1 x transport: 1 hour x $55 = $55
- 1 x social support: 1 hour x $60 = $60
Fortnightly total: $401
Annual cost: $10,426
Budget remaining: $2,584
Hours per fortnight: 6.5 hours
Example 3: High-fee provider (35 percent admin fee)
Annual funding: $17,346
Provider admin fee (35 percent): $6,071
Available for care: $11,275 per year ($939 per month)
Typical hourly rates:
- Personal care: $75/hour
- Domestic assistance: $65/hour
- Transport: $60/hour
- Allied health: $150/session
Fortnightly schedule:
- 2 x personal care: 2 hours x $75 = $150
- 1 x domestic cleaning: 1.5 hours x $65 = $97.50
- 1 x meal prep: 1 hour x $65 = $65
- 1 x transport: 1 hour x $60 = $60
Fortnightly total: $372.50
Annual cost: $9,685
Budget remaining: $1,590
Hours per fortnight: 5.5 hours
The impact of fees: The difference between the low-fee and high-fee provider is 2.5 hours per fortnight, or approximately 65 hours per year. This is the cost of choosing a more expensive provider.
How to choose the right Level 2 provider
Selecting a provider is one of the most important decisions you will make with your Level 2 package. The wrong provider can result in fewer care hours, poor service quality, and frustration. Here is how to choose wisely.
1. Compare fees and transparency
What to request:
- Full fee schedule showing admin fees, care management fees, and hourly rates
- Sample invoice showing how charges are calculated
- Any additional fees (cancellation, travel, weekend surcharges)
Questions to ask:
- What is your total admin fee percentage?
- Are your hourly rates negotiable or fixed?
- Do you charge travel time separately?
- What happens to my unspent funds at the end of the year?
Red flags:
- Providers who will not provide a written fee schedule
- Vague or evasive answers about costs
- Fees significantly higher than competitors without clear justification
For detailed guidance on provider selection, see our how to choose a home care provider guide.
2. Check service flexibility
Level 2 packages work best when providers are flexible about scheduling and service types.
Questions to ask:
- Can I adjust my care plan month to month as my needs change?
- How much notice do I need to give to change or cancel a service?
- Do you offer weekend and evening services?
- Can I “bank” hours for larger purchases (like allied health visits)?
Good providers:
- Allow you to customize your care plan
- Respond quickly to changing needs
- Offer flexible scheduling
- Communicate clearly about budget tracking
Poor providers:
- Lock you into rigid schedules
- Charge high cancellation fees
- Take weeks to adjust your care plan
3. Assess staff continuity and quality
Having the same care worker visit regularly builds trust and improves care quality.
Questions to ask:
- Will I have a regular care worker, or will it rotate?
- What qualifications do your care staff have?
- How do you handle staff absences?
- What is your staff turnover rate?
Good providers:
- Assign dedicated care workers
- Introduce backup staff before your regular worker takes leave
- Invest in staff training and development
4. Evaluate communication and support
Questions to ask:
- Who is my main contact person if I have questions?
- How do I track my budget and spending?
- How often will we review my care plan?
- What is your complaints process?
Good providers:
- Assign a dedicated care coordinator
- Provide regular budget statements (monthly or quarterly)
- Conduct care plan reviews every 3 to 6 months
- Respond to calls and emails within 24 hours
5. Use trial periods wisely
Many providers offer a 3-month trial period. Use this time to evaluate:
- Whether the care quality meets your expectations
- If invoices are clear and accurate
- How responsive the provider is to concerns
- Whether you are getting value for money
If you are not satisfied after 3 months, switch providers. Your unspent funds transfer with you, and you are not locked in.
Switching providers
If your current provider is not meeting your needs:
- Research and contact 2 to 3 alternative providers
- Compare fees, services, and reviews
- Give your current provider written notice (usually 14 days)
- Notify My Aged Care of the change
- Your funds transfer to the new provider within 14 days
You can switch providers as many times as needed. Do not stay with a poor provider out of loyalty or fear of inconvenience.
Getting more from Level 2
Stack your hours strategically. Instead of spreading your hours thin across 5 days, concentrate services on 2 or 3 days. This reduces travel time charges and gives you more actual care.
Use community programs alongside your package. Many councils and community organisations offer free or low-cost services like social groups, Meals on Wheels, and transport. These supplement your funded hours.
Review your care plan regularly. Your needs change over time. Review your care plan with your provider every few months to make sure your hours are going where they matter most.
Know when to request reassessment. If you are consistently running out of hours before the fortnight is up, or if you need services Level 2 does not cover (like nursing care), contact My Aged Care for a reassessment to Level 3.
Frequently asked questions
How much is a Level 2 home care package?
Approximately $17,346 per year in government funding. After provider fees (typically 15% to 35%), you will have between $11,275 and $14,744 available for actual care services. The exact amount of support depends on your provider’s fee structure.
How many hours per fortnight?
Around 6 to 8 hours, depending on the services used and your provider’s hourly rates. Basic support costs $50 to $65 per hour. Personal care costs $55 to $75 per hour.
What is the difference between Level 1 and Level 2?
Level 1 ($10,271/year) covers basic domestic help and transport for 2 to 4 hours per fortnight. Level 2 ($17,346/year) adds personal care, medication management, and basic allied health for 6 to 8 hours per fortnight.
Can I get personal care with Level 2?
Yes. Personal care, including help with showering, dressing, grooming, and toileting, is covered at Level 2.
How long is the wait for Level 2?
Typically 3 to 9 months, though wait times vary by location and urgency. You can access the Commonwealth Home Support Programme for interim services while waiting.
Can I switch providers?
Yes. You can change providers at any time. Your unspent funds transfer to your new provider. Give your current provider the required notice period (usually 14 days).
Resources
- My Aged Care - register and apply for home care
- Aged Care Quality and Safety Commission - provider quality ratings
- Services Australia: aged care fees - fee information
- Department of Health: Home Care Packages - official information
Find a Level 2 provider
Provider fees can make or break your Level 2 experience. The difference between a 15% and 35% fee provider is over $3,400 per year in actual care. MD Home Care connects you with aged care providers so you can compare fees and services before committing.
Browse home care providers on MD Home Care or call 1800 953 253 for help finding the right fit.
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