What Can You Spend Support at Home Funding On? (2026)

Key Points

• Home Care Package funds must be spent on services directly related to your assessed care needs as documented in your individualised care plan
• Providers typically charge 15% to 20% of your total package in management and administration fees, reducing the amount available for direct care
• Common approved expenses include personal care, cleaning, transport, clinical care, mobility aids, home modifications, and social support
• Unspent funds carry forward month to month but accumulating large balances may signal your care plan needs updating
• The Support at Home program (from November 2025) changes how budgets work, with 8 classifications replacing the 4 HCP levels

What Can You Really Spend Your Home Care Package On?

Getting approved for a Home Care Package is a significant milestone. Whether you have a Level 1 through Level 4 package, the core question remains the same: what does the money actually cover?

Many recipients are surprised to learn that a portion of their package never reaches direct care services. Between management fees, administration costs, and spending rules, understanding your budget is essential to getting genuine value from your funding.

This guide covers everything you need to know about HCP spending in 2026, including what the money covers, what it cannot pay for, how fees eat into your budget, common mistakes to avoid, and how the new Support at Home program changes the landscape.

Need help understanding your package budget? Call MD Home Care on 1800 953 253. As a connection platform, mdhomecare.com.au helps you find providers who offer transparent fee structures and genuine value for your funding.

The Core Rule: Spending Must Match Your Assessed Care Needs

Every dollar in your Home Care Package is tied to one guiding principle: the spending must relate directly to your assessed care needs as documented in your care plan.

Your Aged Care Assessment Team (ACAT) assessment identifies what support you need. Your chosen provider then works with you to build a care plan that maps services to those needs. Any spending outside that plan requires discussion with your provider and potentially an updated assessment.

This is not discretionary funding. It is targeted support designed to help you live safely and independently at home.

Category Breakdown: What HCP Funds Cover

Personal Care

Assistance with activities of daily living forms the backbone of most care plans:

• Showering, bathing, dressing, and grooming
• Toileting and incontinence management
• Mobility assistance within the home
• Morning and evening routines
• Skin care and pressure area management

Domestic Support

Maintaining a safe and hygienic home environment is a common use of package funds:

• General house cleaning, vacuuming, and mopping
• Laundry, ironing, and linen changes
• Meal preparation and cooking assistance
• Grocery shopping assistance or delivery coordination
• Basic home maintenance such as changing lightbulbs and replacing smoke alarm batteries

Clinical Care and Allied Health

Managing health conditions at home often requires professional clinical support:

• Nursing care including wound dressing, catheter care, and medication management oversight
• Physiotherapy for mobility, strength, and falls prevention
• Occupational therapy for home safety assessments and equipment recommendations
• Podiatry for foot care, particularly important for those with diabetes
• Speech therapy for swallowing difficulties or communication support
• Dietitian consultations for nutritional planning
• Dementia advisory services and cognitive support
• Telehealth consultations where in-person visits are impractical

Aids, Equipment, and Home Modifications

Items and modifications that improve safety and independence can be funded:

• Mobility aids such as walkers, wheelchairs, and walking sticks (purchase or hire)
• Personal alarm and monitoring systems
• Shower chairs, raised toilet seats, and bathroom safety equipment
• Grab rails, ramps, and handrails
• Specialised eating utensils and dressing aids
• Continence products including pads and catheters
• Hearing aid batteries and accessories (not the hearing aid itself if covered by government programs)

For home modifications, minor works under $1,500 are generally straightforward to approve. Modifications above that threshold typically require an occupational therapist assessment and competitive quotes. Major structural changes like bathroom renovations or extensions fall outside HCP scope entirely.

Transport

Getting to appointments and staying connected to your community is an approved use of funds:

• Support worker transport to medical appointments
• Taxi vouchers or rideshare services for healthcare visits
• Community transport services for seniors
• Transport to social activities and community events
• Fuel reimbursement when a support worker uses your vehicle

Transport must be directly linked to your care needs. It cannot cover holidays, general family visits, or vehicle registration and insurance.

Social Support and Wellbeing

Isolation has a measurable impact on health outcomes for older Australians. Package funds can support:

• Companionship visits at home
• Escorted outings to community activities
• Group social programs and day centres
• Support to participate in hobbies and interests
• Respite care to give family carers a break

What Your Home Care Package Cannot Pay For

Understanding exclusions prevents frustration and helps you plan your personal budget alongside your package:

• Everyday living costs including rent, mortgage payments, utility bills, groceries (the food itself, not meal preparation services), phone and internet bills
• Services covered by Medicare such as GP visits, specialist consultations, and hospital treatment
• Medications covered by the PBS (Pharmaceutical Benefits Scheme)
• Holidays and non-care travel including accommodation, flights, and leisure transport
• Entertainment such as streaming subscriptions, club memberships, and tickets to events (unless part of a documented social support goal)
• Cash withdrawals from your package account
• Services for other people as the package is strictly for the assessed individual
• Standard household appliances like fridges, washing machines, televisions, and air conditioners (exceptions apply only where an item qualifies as assistive technology with clinical justification)
• Gambling, alcohol, or tobacco
• Major structural home renovations

The Appliance Question

This comes up frequently. The general rule is that standard appliances are not covered. However, exceptions exist when an item functions as assistive technology essential for managing a diagnosed condition:

• An air conditioner or purifier may be approved if you have severe COPD or respiratory disease and a specialist confirms climate control is medically necessary
• A small medication fridge may be approved for storing temperature-sensitive medications like insulin
• A specialised washing machine may be considered where severe incontinence management requires it

Getting an appliance approved requires a formal occupational therapy assessment, a letter from your GP or specialist, and evidence that the item is cost-effective compared to alternatives. Always discuss with your provider before purchasing.

The Medication Question

HCP funds do not cover medication costs, particularly those subsidised by the PBS. However, medication-related services are commonly funded:

• A nurse overseeing medication administration
• Support workers providing medication reminders
• Transport to the pharmacy
• Webster-pak packing services when linked to an identified care need
• Medication review consultations with a pharmacist (if part of your care plan)

Package Management Fees: Where 15-20% of Your Budget Goes

This is one of the most important things to understand about your Home Care Package. Before any care services are delivered, your provider deducts fees for managing your package. These fees typically consume 15% to 20% of your total package value.

What the Fees Cover

Care management pays for your dedicated care manager who:

• Develops and reviews your individualised care plan
• Coordinates services and schedules
• Monitors your health and wellbeing
• Communicates with your family and healthcare team
• Responds to changes in your needs

Package management (administration) covers:

• Financial administration and invoicing
• Monthly and annual statement preparation
• Government reporting and compliance
• Insurance and organisational overheads
• Staff training and quality assurance

The Real Impact on Your Budget

Here is what management fees look like in dollar terms across the four HCP levels:

Package Level	Annual Value	At 15% Fees	At 20% Fees	Left for Care (15%)	Left for Care (20%)
Level 1	$10,271	$1,541	$2,054	$8,730	$8,217
Level 2	$17,346	$2,602	$3,469	$14,744	$13,877
Level 3	$38,454	$5,768	$7,691	$32,686	$30,763
Level 4	$62,589	$9,388	$12,518	$53,201	$50,071

The difference between a provider charging 15% and one charging 20% on a Level 3 package is $1,923 per year. Over several years, that adds up to thousands of dollars in care services gained or lost.

How to Compare Provider Fees

When evaluating providers, ask these specific questions:

1. What is your total combined care management and administration percentage?
2. Are there any additional charges beyond the percentage (setup fees, exit fees, service coordination fees)?
3. What services does the care management fee actually include?
4. How often will I receive itemised statements?
5. What is your exit fee? (Capped at $500 by law, but some providers charge less or nothing)

If you are self-managing your Home Care Package, you take on some administrative tasks yourself in exchange for lower management fees, typically 10% to 15%. This puts more money toward direct care but requires more involvement from you or a family member.

Budget Management Tips

1. Request Monthly Itemised Statements

Your provider is legally required to give you monthly statements. Review them carefully. Look for:

• Services charged that you did not receive
• Fees that seem higher than agreed
• Unexplained deductions or adjustments
• The balance of your unspent funds

If anything looks wrong, raise it with your provider immediately. Keep copies of all statements.

2. Review Your Care Plan Every Three Months

Your needs change over time. A care plan that suited you six months ago may not reflect your current situation. Regular reviews help you:

• Add services you now need
• Remove services you no longer use
• Reallocate funds to higher-priority areas
• Prevent large unspent balances from accumulating

3. Understand the True Cost of Each Service

Ask your provider for a complete price list. Compare the hourly rates for each service type:

• Personal care worker rates
• Nursing visit costs
• Allied health session fees
• Domestic assistance rates
• Transport costs per trip

Knowing the unit cost of each service lets you make informed trade-offs when planning your budget.

4. Use a Budget Planner

Map out your expected spending for each quarter. A simple spreadsheet tracking your fortnightly services against your available budget helps you spot shortfalls or surpluses early. Many providers offer online portals where you can track spending in real time.

5. Do Not Let Large Balances Accumulate

While unspent funds carry forward (see below), consistently large balances suggest your care plan is not meeting your actual needs. The Department of Health monitors package utilisation, and significant ongoing underspend may trigger a review.

Use surplus funds for beneficial one-off purchases like equipment, home modifications, or additional therapy sessions. Talk to your care manager about adjusting your regular services.

Unspent Funds: What Happens to Your Money

Unspent Home Care Package funds remain in your package account. They do not expire at the end of a month or financial year. This gives you flexibility to save for larger purchases or to cover periods where you need more intensive support.

Key Rules for Unspent Funds

Changing providers: Your unspent Commonwealth contribution and any unspent personal contributions transfer to your new provider. The outgoing provider may charge an exit fee of up to $500. The transfer should happen within 70 days of your new provider submitting a claim.

Entering residential aged care: If you move into a nursing home, the Commonwealth contribution portion of your unspent funds returns to the government. Any personal contributions you have made are refunded to you.

Passing away: The Commonwealth contribution returns to the government. Personal contributions are refunded to your estate.

Accumulating large balances: If your unspent balance grows to more than a few weeks’ worth of services, your provider should proactively discuss whether your care plan needs adjusting. A contingency buffer of one to two weeks of services is reasonable; much more than that signals a problem.

Common Home Care Package Spending Mistakes

Mistake 1: Not Comparing Provider Fees Before Signing

Many people accept the first provider they speak with. A 5% difference in management fees translates to thousands of dollars over the life of your package. Always compare at least three providers.

Mistake 2: Treating Your Package Like a Bank Account

Some recipients hoard their funds “for later” without a specific plan. While saving for a known future expense is sensible, ongoing underspend means you are not getting the support you are entitled to right now.

Mistake 3: Not Understanding What Fees You Are Paying

If you cannot explain what your care management and administration fees cover, you are paying for something you do not understand. Ask for a clear breakdown and compare it against other providers.

Mistake 4: Ignoring Your Monthly Statements

Billing errors happen. Services may be charged at incorrect rates, or you may be billed for visits that were cancelled. Checking your statements monthly catches these issues before they compound.

Mistake 5: Assuming Your Care Plan Is Fixed

Your care plan is a living document. As your health, mobility, or circumstances change, the plan should change with them. Waiting until a crisis to update your care plan means months of suboptimal support.

Mistake 6: Paying for Services You Could Get Free

Some services covered by your package may also be available free through other programs. For example:

• The Commonwealth Home Support Programme (CHSP) may cover some basic services
• DVA Gold Card holders may access services through Veterans’ Home Care
• State government programs may fund specific home modifications
• Medicare covers GP management plans and some allied health sessions

Using your HCP for services available elsewhere wastes your package budget. Ask your provider and your GP about alternative funding sources.

How Support at Home Changes Your Spending

The Support at Home program, which replaced Home Care Packages from November 2025, changes how your budget works. The most significant change is how services are organised into three categories, each with different co-contribution rates.

The Three Service Categories

1. Clinical Care (0% co-contribution)

The government fully funds clinical care. You pay nothing for these services regardless of your income or assets.

Included services:

• Nursing care (wound management, catheter care, medication administration)
• Physiotherapy
• Occupational therapy
• Speech pathology
• Podiatry
• Dietitian consultations
• Dementia advisory services
• Other allied health services

This is a major improvement over the old HCP system, where clinical care was deducted from your package budget like any other service.

2. Independence Services (moderate co-contribution)

These services help you maintain or improve your ability to live at home. Co-contributions are moderate and depend on your financial circumstances. Full Age Pension recipients pay around 5%.

Included services:

• Personal care (showering, dressing, grooming, mobility assistance)
• Assistive technology (mobility aids, personal alarms, specialised equipment)
• Home modifications (grab rails, ramps, bathroom modifications)
• Reablement and restorative care programs

3. Everyday Living Services (highest co-contribution)

These cover practical daily tasks. Co-contributions are the highest of the three categories, up to 17.5% for full pensioners and potentially more for self-funded retirees.

Included services:

• Domestic assistance (cleaning, laundry, linen changes)
• Gardening and home maintenance
• Meal preparation and cooking assistance
• Transport to appointments and social activities
• Social support and companionship
• Respite care

What Is Still Excluded Under Support at Home

The following remain excluded from Support at Home funding, consistent with the old HCP rules:

• Rent, mortgage payments, utility bills, and groceries (the food itself)
• Services covered by Medicare (GP visits, specialist consultations, hospital treatment)
• Medications covered by the PBS
• Holidays and non-care travel
• Standard household appliances (unless clinically justified as assistive technology)
• Cash withdrawals
• Services for other people
• Gambling, alcohol, or tobacco
• Major structural home renovations

8 Classifications and Quarterly Budgets

Support at Home uses classifications 1 through 8, replacing the previous 4 HCP levels. Funding is allocated in quarterly budgets rather than annual packages. You can carry over unspent funds from one quarter to the next, up to $1,000 or 10% of your quarterly budget, whichever is greater. Funds beyond this limit do not roll over.

Care Management Fee: 10% Standard Deduction

Under Support at Home, 10% of each quarterly budget is deducted for care management. This is standardised across all providers and covers care planning, coordination, and administration. The remaining 90% of your budget is available for direct services.

Price Caps from July 2026

From 1 July 2026, government-set price caps take effect for most Support at Home services. These caps, set with advice from the Independent Health and Aged Care Pricing Authority (IHACPA), will limit what providers can charge. Until then, providers set their own prices, so comparing costs across providers remains important.

Transition for Existing HCP Recipients

If you transitioned from a Home Care Package, your existing budget is honoured. Your provider should have communicated how your funding maps to the new system. For details on the transition, see our guide to switching from HCP to Support at Home.

For a full overview of the program, see our complete Support at Home guide.

Can Family Members Be Paid From Your Package?

Generally, Home Care Package funds cannot pay family members who live with you to provide care. This rule exists to maintain professional standards and appropriate boundaries.

Exceptions may apply in limited circumstances:

• Remote areas where professional services are genuinely unavailable
• Culturally specific care needs that cannot be met by available services
• Unique care requirements needing specialised knowledge

In exceptional cases, the family member must be employed through your provider or registered as a contractor with appropriate qualifications, insurance, and ABN. The arrangement must be formally documented in your care plan.

Gardening, Cleaning, and Other Domestic Services

Domestic services are among the most popular uses of Home Care Package funds.

Cleaning covers general house cleaning, vacuuming, mopping, bathroom cleaning, laundry, and linen changes. It must be for areas you use regularly and at a frequency proportionate to your needs.

Gardening covers lawn mowing, weeding, pruning hazardous branches, pathway clearing, and maintaining garden areas you need to access. It does not cover landscaping, tree removal, establishing new gardens, or purely cosmetic work. Most providers require approved contractors with appropriate insurance.

Meal preparation covers assistance with cooking, meal planning, and food preparation. It can also cover delivery of pre-prepared meals where this is more practical. The package pays for the service, not the food itself.

How to Get the Most From Your Package

1. Compare at least three providers before making your choice. Focus on total fees, service range, and how responsive they are to your questions.

2. Review your care plan quarterly. Do not wait for your provider to suggest it. Request a review whenever your needs change.

3. Read your monthly statements. Flag anything that looks incorrect within 30 days.

4. Ask about all available funding sources. Your HCP should complement, not duplicate, services available through Medicare, CHSP, DVA, or state programs.

5. Consider self-management if you or a family member can handle some administrative tasks. The fee savings go directly to more care hours.

6. Plan for large purchases. If you need equipment or home modifications, discuss timing and budgeting with your care manager so the expense fits within your quarterly plan.

7. Stay informed about Support at Home. The transition affects your budget, fees, and available services. Ask your provider for regular updates on what is changing and when.

Get Help Understanding Your Package Budget

Navigating Home Care Package spending rules does not have to be confusing. The right provider will give you clear, transparent information about fees, budgets, and what your money covers.

Call MD Home Care on 1800 953 253 to connect with providers who prioritise budget transparency and genuine value for your funding. As a connection platform, mdhomecare.com.au helps you compare aged care providers and find the right fit for your needs and budget.

Disclaimer: This information is general in nature and based on guidelines current as of March 2026. Home Care Package rules are subject to change, particularly during the transition to Support at Home. Always consult directly with your provider and refer to official government resources at myagedcare.gov.au for advice specific to your circumstances.