Home care packages Australia: the complete 2026 guide
Camila
Healthcare Expert
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Key points
- Home care packages provide government-funded support for older Australians to stay living at home
- Four levels of funding from $10,271/year (Level 1) to $62,589/year (Level 4)
- You need an ACAT assessment through My Aged Care to qualify
- The Support at Home program began replacing HCPs from November 2025
- You can choose and change your provider at any time
- Waiting lists remain long, with over 130,000 people waiting as of late 2025
What are home care packages?
Home care packages are government-funded programs that help older Australians get the care and support they need to keep living at home. Instead of moving into a nursing home or residential aged care facility, you receive services in your own home, on your own terms.
The Australian Government pays an approved provider to coordinate your care. The amount of funding depends on which level you are assessed for, from basic help with housework and transport through to complex nursing care and personal support.
About 250,000 Australians currently receive home care packages. The program sits within the broader aged care system managed by the Department of Health and Aged Care, with My Aged Care acting as the central access point.
Since November 2025, the government has been transitioning home care packages to the new Support at Home program. If you are already on a home care package, your services continue while the transition happens. If you are applying for the first time, you will enter the new system.
The 4 home care package levels
Each level matches a different intensity of care needs. The funding amounts below are the annual government subsidies before any fees.
Level 1: basic care needs
Annual funding: approximately $10,271
Level 1 is for people who need a small amount of help to stay independent. This might mean a few hours of housework per week, help getting to appointments, or someone to check in regularly.
Typical services at this level:
- Light housework and laundry
- Transport to medical appointments
- Social support and companionship
- Basic garden maintenance
- Simple meal preparation
You can expect around 2 to 4 hours of support per fortnight at Level 1. It is the entry point into the home care system and suits people whose needs are manageable but who could use a hand with specific tasks.
Read more: Level 1 home care package explained
Level 2: low-level care needs
Annual funding: approximately $17,346
Level 2 is the most commonly assigned package. It covers people who need regular help with daily activities but can still manage most things independently.
Typical services at this level:
- Personal care (help with showering, dressing)
- Regular domestic assistance
- Meal preparation and nutrition support
- Transport and social outings
- Basic allied health (podiatry, physiotherapy)
- Medication management
You can expect around 6 to 8 hours of support per fortnight. Many people start at Level 2 and move to higher levels as their needs change over time.
Read more: Level 2 home care package explained
Level 3: intermediate care needs
Annual funding: approximately $38,454
Level 3 is for people with more complex needs who require a coordinated mix of services. This is the most searched-for level because it represents a significant step up in both funding and care intensity.
Typical services at this level:
- All Level 2 services, plus:
- Nursing care (wound care, catheter management)
- Allied health services (physiotherapy, occupational therapy, speech therapy)
- More hours of personal care
- Home modifications for safety
- Assistive technology and equipment
- Respite care for family carers
You can expect around 10 to 15 hours of support per fortnight. Level 3 suits people managing chronic health conditions, recovering from hospital stays, or living with moderate cognitive decline.
Read more: Level 3 home care package explained
Level 4: high-level care needs
Annual funding: approximately $62,589
Level 4 is the highest level of home care, designed for people who would otherwise need residential aged care. It provides intensive, coordinated support across multiple service areas.
Typical services at this level:
- All Level 3 services, plus:
- Daily personal care assistance
- Regular nursing visits
- Complex health management
- Overnight care or monitoring
- Extensive home modifications
- Equipment and assistive technology
- Regular respite care
You can expect around 20 to 28 hours of support per fortnight. Level 4 packages allow people with serious health conditions, advanced dementia, or significant physical disabilities to remain at home with comprehensive care.
Read more: Level 4 home care package explained
Comparison: all 4 levels
| Feature | Level 1 | Level 2 | Level 3 | Level 4 |
|---|---|---|---|---|
| Annual funding | $10,271 | $17,346 | $38,454 | $62,589 |
| Care hours (per fortnight) | 2-4 hours | 6-8 hours | 10-15 hours | 20-28 hours |
| Personal care | Limited | Yes | Yes | Extensive |
| Domestic help | Yes | Yes | Yes | Yes |
| Nursing care | No | Basic | Yes | Complex |
| Allied health | No | Basic | Yes | Yes |
| Home modifications | No | Minor | Yes | Extensive |
| Respite care | No | Limited | Yes | Regular |
| Best for | Light help with tasks | Regular daily support | Complex health needs | Alternative to residential care |
Funding amounts are approximate and based on 2024-25 government schedules. Actual care hours depend on service types and provider fees. Source: Department of Health and Aged Care
Who is eligible?
To qualify for a home care package, you need to meet these requirements:
Age: Generally 65 years or older (50 or older for Aboriginal and Torres Strait Islander people). There is no strict cutoff and younger people with complex needs may also qualify.
Residency: Australian citizen, permanent resident, or holder of a special category visa.
Care needs: You must have care needs that can be met through home-based services. This is determined through a formal ACAT assessment.
Preference for home care: You need to want to stay living at home rather than enter residential aged care.
The ACAT assessment is the main gateway. An assessor visits your home, evaluates your physical, cognitive, and social needs, and recommends a package level. The process typically takes 1 to 3 weeks from referral to assessment.
Read our full guide: Home care package eligibility requirements
How to apply
Getting a home care package involves several steps. Here is the process from start to finish.
1. Contact My Aged Care
Call 1800 200 422 or visit myagedcare.gov.au. You will go through an initial screening that takes about 15 to 20 minutes. Have your Medicare card handy.
Anyone can make this call. You, a family member, your GP, or a hospital social worker can all start the process on your behalf (with consent).
2. Get your ACAT assessment
If the screening identifies that you may need a home care package, you will be referred to an Aged Care Assessment Team. An assessor (usually a nurse or allied health professional) will visit you at home.
The assessment covers:
- Your daily routine and what you can manage independently
- Health conditions and medications
- Home safety and environment
- Social connections and emotional wellbeing
- Cognitive function
Tips from people who have been through it:
- Do not downplay your difficulties. Be honest about what you struggle with.
- Have a family member or friend present. They can add context the assessor needs.
- Show the assessor your worst days, not your best. If you have pain in the mornings, book a morning assessment.
Not sure which level you might qualify for? Try our free ACAT Assessment Level Quiz to get an estimate based on your care needs.
3. Receive your approval
After assessment, My Aged Care sends a letter confirming whether you have been approved and which level you qualify for. This usually arrives within 2 to 4 weeks of the assessment.
If you disagree with the outcome, you can request a review or apply for reassessment.
4. Wait for your package
Once approved, you join the national queue. Priority is based on urgency and the date of your approval. While you wait, you may be able to access services through the Commonwealth Home Support Programme (CHSP).
Current wait times (late 2025 data): The waiting list reached over 130,000 people by December 2025, an increase of 25,000 in just two months. Waits vary from a few months for Level 1 to over 12 months for Level 4. Source: ABC News, February 2026.
5. Choose a provider
When your package becomes available, you have 56 days to select an approved provider. This is your choice and it matters. Providers charge different fees, offer different services, and vary in quality.
Things to compare:
- Administration and care management fees (these come out of your package funding)
- Range of services offered
- Flexibility in scheduling
- Exit fees (if any)
- Reviews from other clients
You can browse and compare home care providers through MD Home Care’s provider network to find the right fit.
6. Start your services
Work with your chosen provider to create a care plan. This plan sets out what services you will receive, when, and how your funding will be spent. Services begin once you sign the Home Care Agreement.
You can change providers at any time if you are not happy. Your unspent funds transfer with you.
How to choose a provider
Choosing the right home care package provider is one of the most important decisions in this process. Your provider manages your funding, coordinates your services, and is your main point of contact.
Watch out for high fees. Some providers charge administration fees of 30% to 40% of your package, leaving less money for actual care. Others charge under 20%. Ask for a full fee schedule before signing up.
Check what services they actually provide. Some providers deliver all services in-house. Others subcontract. Neither is necessarily better, but you should know what you are getting.
Ask about flexibility. Can you change your care plan easily? Can you bank unused hours? What happens if you need to cancel a session?
Read reviews and ask around. Talk to other families. Check the My Aged Care provider finder for quality ratings.
Consider self-management. Some providers offer self-managed or partly self-managed packages, giving you more control over who delivers your care and how your funding is spent. Read more about self-managed home care packages.
Through MD Home Care, you can browse provider profiles, compare fee structures, and connect with aged care providers in your area. Find providers near you.
Costs and fees
Home care packages are mostly government-funded, but there are some costs you may need to pay.
Basic daily fee
Providers can charge a basic daily fee of up to 17.5% of the single basic Age Pension. As of March 2026, this works out to around $12.50 per day or roughly $4,560 per year. Not all providers charge this fee, and some charge less than the maximum.
Income-tested care fee
If your income is above the full Age Pension threshold, Services Australia will calculate an income-tested care fee. This fee is capped annually and over your lifetime. The value of your home is not counted in this assessment.
| Situation | Income-tested fee |
|---|---|
| Full Age Pension recipient | No income-tested fee |
| Part pensioner | May pay a fee based on income above threshold |
| Self-funded retiree | Likely to pay a fee, subject to annual cap |
For current thresholds and caps, visit Services Australia.
What the government pays
The government subsidy goes directly to your provider. The exact amount depends on your package level and any income-tested reduction. The subsidy covers care services, care management, and package management.
Support at Home: 2026 changes
The Australian Government’s Support at Home program began replacing Home Care Packages from November 1, 2025. This is the biggest change to home care in over a decade.
What changed
- 8 classifications replace 4 levels. Instead of Levels 1 to 4, the new system uses classifications 1 to 8, allowing for more precise matching of funding to needs.
- New assessment tool. The Independent Assessment Tool (IAT) replaces the old ACAT assessment process.
- Changed fee structures. How fees are calculated and what you pay has been restructured.
- New service categories. Services are grouped into clinical care, independence, and everyday living, each with different funding rules.
What stayed the same
- You still need an assessment to qualify
- You still choose your own provider
- You can still change providers
- Government funds the majority of costs
Transition for existing recipients
If you already have a home care package, you continue receiving your current services. The government is transitioning existing recipients gradually. You do not need to reapply, and your services should not be disrupted during the transition.
Concerns and controversy
The transition has not been smooth. ABC News reported in February 2026 that advocacy groups fear the new Independent Assessment Tool could underestimate care needs, with calls to advocacy services surging 50% after the IAT was introduced. The government has said it is monitoring and refining the system.
Health Services Daily reported the government has granted extensions for implementation as challenges persist.
For detailed coverage of these changes, read our Support at Home program guide.
Frequently asked questions
What are the 4 levels of home care packages?
Level 1 is for basic care needs ($10,271/year), Level 2 for low-level care ($17,346/year), Level 3 for intermediate care ($38,454/year), and Level 4 for high-level care ($62,589/year). Each level provides progressively more funding and covers a wider range of services. Since November 2025, these are being transitioned to the new Support at Home program with 8 classifications.
How much is a Level 3 home care package?
Level 3 provides approximately $38,454 per year in government funding. Under the new Support at Home program, intermediate care (replacing Level 3) is funded at $30,000 to $50,000 per year depending on your classification. The exact amount of care you receive depends on your provider’s fees. Read the full Level 3 guide.
How many hours is a Level 4 home care package?
Level 4 packages typically provide 20 to 28 hours of care per fortnight. The exact hours depend on what types of services you use, as nursing care costs more per hour than domestic help. Read the full Level 4 guide.
How do I apply for a home care package?
Contact My Aged Care on 1800 200 422 or visit myagedcare.gov.au. You will go through an initial screening, then be referred for an ACAT assessment. The assessment determines which level you qualify for.
How long is the wait for a home care package?
As of late 2025, the national waiting list exceeded 130,000 people. Wait times range from a few months for Level 1 to over 12 months for Level 4. While waiting, you can access basic support through the Commonwealth Home Support Programme (CHSP).
What is the difference between Level 2 and Level 3?
Level 2 provides $17,346/year for people who need regular help with daily activities (about 6 to 8 hours per fortnight). Level 3 provides $38,454/year for people with more complex needs including nursing care and allied health (about 10 to 15 hours per fortnight). Level 3 is a significant step up in both funding and service intensity.
Do I have to pay for a home care package?
The government covers most of the cost. You may pay a basic daily fee (up to about $12.50/day) and an income-tested fee if your income is above the pension threshold. Full pensioners do not pay income-tested fees. Your home value is not counted.
Can I choose my own provider?
Yes. You choose from any government-approved home care provider. You can also switch providers at any time, and your unspent funds transfer with you. Compare providers on fees, services, flexibility, and quality ratings.
What services are covered?
Services include personal care, domestic help, meal preparation, transport, nursing care, allied health, home modifications, equipment, social support, and respite care. Higher levels cover more complex and more hours of services.
What happens if my needs increase?
You can request a reassessment through My Aged Care at any time. If your needs have increased, you may be approved for a higher level package. Your provider can also flag that your needs have changed.
Can family members be paid carers?
In some cases, yes. Your provider must approve the arrangement and include it in your care plan. There are rules about what family members can and cannot be paid to do.
Resources
- My Aged Care - the starting point for all aged care services
- Aged Care Quality and Safety Commission - provider quality ratings and complaints
- Services Australia: aged care fees - income testing and fee information
- Department of Health: Home Care Packages - official program information
Find the right home care provider
Choosing a provider can feel overwhelming, especially when you are already dealing with health concerns and complicated paperwork. MD Home Care connects you with aged care providers across Australia so you can compare services, fees, and reviews in one place.
Browse home care package providers on MD Home Care or call 1800 953 253 to talk to someone who can help you find the right fit.
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